FACTBOX: Climate bill pending in U.S. House

(Reuters) - Climate change legislation pending in Congress would cost U.S. households only about $175 annually in higher energy and consumer prices, far less than the $3,100 "burden" opponents have claimed would result, according to an estimate by the non-partisan Congressional Budget Office.

Democratic leaders in the U.S. House of Representatives hope they can soon pass a climate change bill that would significantly reduce industry emissions of carbon dioxide and other greenhouse gases associated with global warming.

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 pollution permits under the program would be given out, and 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 those that much be purchased. Obama wanted all of the permits to be sold, but has indicated flexibility.

* Under "cap and trade," fewer and fewer pollution permits would be available to companies over the next several decades. Also, companies that pollute less than their limit could sell some of their permits to others struggling to meet environmental requirements.

* 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 "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 in Washington; editing by Patricia Zengerle)