FACTBOX: Climate change bill cleared by House panel

(Reuters) - An important committee of the U.S. House of Representatives has approved a climate change bill backed by Democrats, boosting chances it will be approved by the full House later this year.

The House Energy and Commerce Committee voted 33-25 in favor of the bill, with only one Republican voicing support.

Next, the House Ways and Means Committee is expected to review tax and trade implications of the bill. Ways and Means and other committees could make further revisions.

President Barack Obama has made fighting climate change a priority and the House aims to approve its version by August.

But it faces tougher going in the Senate, where many Republicans and even some Democrats are nervous about a "cap and trade" program to gradually lower industrial emissions of carbon dioxide and other greenhouse gases. It is also easier for the minority Republicans in the Senate to block legislation than in the House.

Here are details of the House Democratic version of the bill:

* U.S. emissions of carbon dioxide and other greenhouse gases would be reduced 17 percent by 2020 from 2005 levels. This is less ambitious than the 20 percent initially sought, but slightly more aggressive than the approximately 15 percent Obama proposed.

The legislation sets further pollution reduction goals -- 42 percent by 2030 and 83 percent by 2050, with the latter just slightly higher than Obama suggested.

* About 85 percent of the pollution permits that industries would have to obtain would be given to them initially, while around 15 percent would be sold. Local electric distribution companies would get 30 percent of all permits for free and would have to protect consumers from electricity price increases.

Other recipients of free permits: 15 percent to cement, steel, glass and other heavy industries; 9 percent to local natural gas distribution companies; 3 percent for firms making electric and advanced technology vehicles and 2 percent for oil refiners.

The free permits are designed to ease industry's burden and prevent large energy price increases for consumers. In 2026, many of the free permits would begin switching to ones companies would have to buy.

Obama wants all of the permits to be sold, but has indicated flexibility.

* Electric utilities that capture and store greenhouse gas emissions could get up to $100 billion in bonus carbon pollution permits.

* Utilities would have to generate 15 percent of their electricity from renewable sources such as wind or solar power and show a 5 percent gain in energy efficiency by 2020. Governors could lower the 15 percent target to 12 percent with 8 percent efficiency gains if they determine the national goals are unattainable for their states.

* Obama's February budget envisioned $646 billion in revenue from the sale of the permits between 2012-2019. But that assumed a 100 percent auction of emissions permits, far from the level the House bill requires.

* Companies could offset up to 2 billion tons of their emissions annually by paying for "green" projects in the United States and other countries, such as preserving tropical rainforests.

* A one-year plan to encourage consumers to buy more fuel-efficient cars -- and to jump-start sagging new car sales -- would provide vouchers of up to $4,500 for trade-ins of "clunker" cars to be replaced by new, better mileage ones. This provision could end up being split off of the climate change bill and passed separately in the House.

* A "clean energy" bank within the Energy Department would be created to provide direct loans and government loan guarantees to encourage projects using clean energy technology.

* The Federal Energy Regulatory Commission would have greater authority to investigate manipulation in natural gas and carbon markets.

(Reporting by Richard Cowan, editing by Vicki Allen)