By Edward Epstein, CQ Staff

House Republicans are trying to coax Democrats from industrial and coal-dependent states into opposing a cap-and-trade system and taxes on greenhouse gas emissions, saying that such proposals would be economically ruinous for parts of the country.

But Speaker Nancy Pelosi sought to throw cold water on the Republican effort Wednesday, saying that any climate change legislation would be designed to avoid penalizing parts of the country that produce greater amounts of pollution.

“We can’t pass a bill, nor would it be appropriate to pass a bill, that is a penalty to some states, even though it would be reducing pollution,” the California Democrat said. “That’s why we are going forward with a consensus bill, which we always do in our caucus.”

Pelosi’s comments came a day after Mike Pence of Indiana, who chairs the House Republican Conference, declared that proposals for cap and trade or a carbon tax “amount to a declaration of economic war on the Midwest by Democrats on Capitol Hill.”

Pence said he would prefer to work with Democrats from the Midwest and other affected areas to oppose the cap-and-trade system that is the centerpiece of global warming legislation being drafted by House and Senate committees. “I’ve spoken to Democratic colleagues,” he said.

Meanwhile, Republican Marsha Blackburn of Tennessee said she is looking for Democratic cosponsors for her bill that would bar the EPA from regulating carbon dioxide, a step the agency has indicated it will take if Congress doesn’t act.

Beneath the GOP bid for partnership lies the possibility of a bare-knuckle partisan fight in the 2010 midterm elections if Democrats from affected regions don’t unite with Republicans against one of Pelosi and President Obama’s key objectives.

Keeping Industry in Mind

But so far Pence’s idea doesn’t seem to be gaining traction. Energy and Commerce member Mike Doyle of Pennsylvania is working with fellow Democrats on the panel to mitigate impacts on industry, utility customers and the coal industry by coming up with a Democratic consensus on climate change legislation. “All of us want to say yes. I don’t know of anyone who doesn’t want to vote for this on the Democratic side,” he said.

But another Pennsylvania Democrat says he will vote against any bill with a cap-and-trade system. However, Jason Altmire said that so far he hasn’t heard from Republicans. “I would like to work with anyone who wants to see it taken out,” Altmire said. “I’m not interested in the politics. I just think cap and trade is bad policy.”

Pelosi said she has committed to House Democrats from industrial or coal-producing areas that their concerns will be addressed in the bill now being drafted.

“There should be no penalty for any part of the country,” she said. Pelosi added that she has told members the legislation will “make consumers whole” and that any “differential in cost” for U.S. industries that have to comply with the new rules will be made up so they don’t suffer a competitive disadvantage with foreign competitors.

Doyle said that once the committee comes up with its bill, the GOP arguments will wilt. “Republican arguments will fall flat once they see the bill. Costs will be modest or minimal, and it will move us down the path” to energy independence and combating global warming, he said.