"Opponents of climate legislation paint efforts to reduce carbon emissions as 'cap and tax' policy, but a new analysis of the current House proposal to curb greenhouse gas emissions finds that consumers would receive around $750 billion in direct and indirect handouts and subsidies through 2030 to offset the higher energy costs.

The Waxman-Markey bill, under discussion by the House committee on energy and commerce this week, creates pollution permits, or allowances, for carbon-intensive industries like power producers or oil refineries. The number of these permits gradually goes down each year -- providing a 'cap' on greenhouse gas emissions.

Since the permits can be traded, they also set a price on carbon-dioxide emissions and encourage polluters to switch to cleaner fuels."

Jad Mouawad reports for the New York Times May 20, 2009. [2]