BY JENNA CITTADINO, CLIMATE POLICY PROGRAM ASSOCIATE

As the Senate Environment and Public Works Committee began hearings on carbon regulation, debate ran along traditional battle lines, but with a new script. Democrats Barbara Boxer (CA) and John Kerry (MA) moved away from discussing the environmental impacts of climate change - - and the reason, therefore, to take action to reduce carbon emissions - - and focused instead on the economic benefits of a domestic clean energy economy. Meanwhile, Republicans James Inhofe (OK) and Lamar Alexander (TN) complained that energy bills would rise and Americans would lose jobs.

California's state budget gap was about $40 billion this year. New York's some $50 billion. Every state in the Union is struggling with drastically lower revenues and higher costs for services of every kind, washing state capitals with red ink. At the polls next year, governors who are facing elections - - including Governor David Patterson of New York - - may find themselves politically drowned by such gargantuan deficits.

<!--[if gte mso 10]>