As the hearings on the Waxman/Markey draft legislation continued on into day three, it became evident that a number of amendments are likely to be offered from both sides of the aisle. Some moderate Democrats are struggling with the bill in its current form and hope to propose amendments that would lower the emissions targets of the bill and give away free allowances to industry.

On the Republican side, amendments will be offered that eliminate the 100 percent auction of allowances, and perhaps a safety valve amendment could be proposed by Rep. Upton that would ease compliance burdens if costs rise beyond projections.