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The Center believes the U.S. Congress should pass strong Cap-and-Trade legislation this year. Absent that, the U.S. EPA should implement Cap-and-Trade regulations that will allow 'anyone' to hold and trade allowances.

Unfortunately, the U.S. Senate will vote this week on Senator Lisa Murkowski's resolution that would stop the EPA from regulating greenhouse gases under the Clean Air Act. A disapproval resolution is scheduled for 10 hours of debate Thursday on the Senate floor.

In 2007, the Supreme Court ruled that the EPA could use the Clean Air Act to regulate greenhouse gases. EPA found that carbon dioxide and five other greenhouse gases in the atmosphere “threaten the public health and welfare of current and future generations.” That finding could lead to regulation of large greenhouse gas emitters. However, under the Congressional Review Act, Congress can disapprove of the finding and block it if Murkowski’s resolution passes the Senate and House with majorities and is signed by the president.

Murkowski introduced the resolution in January. But even if the resolution gets through the Senate, it is expected to have a much harder time in the House. (Newsminer, 6/7/2010)