U.S. Senate Environment and Public Works Committee Chairman Barbara Boxer, (D., Calif.), on Thursday, pressed ahead with a third day of hearings on climate legislation in the face of new attacks on the measure.

Sen. Jim Inhofe, (R., Okla.), demanded a more thorough analysis of the legislation before the committee begins the process of modifying and approving the bill. Sen. George Voinovich, (R., Ohio), blew up at Boxer, saying that forcing polluters to pay for greenhouse-gas emissions would result in a massive transfer of wealth from some parts of the country.

"California is going to make out like a bandit with this legislation," Voinovich complained. "To jam this thing through here is not going to be good and America is going to be very, very upset about it."

Tempers are flaring amid uncertainty about the regional effects on capping greenhouse-gas emissions. Under the legislation, companies would have to hold government-issued permits allowing them to spew carbon dioxide and other greenhouse gases, which scientists have linked to climate change. Only a limited number of permits would be issued, with fewer offered over time.

Manufacturers, which rely on coal-generated power, and coal producers would be among the hardest hit under such a policy. Coal is a cheap source of electricity in the U.S., accounting for almost half of U.S. electricity generation. But coal-fired power is also a major source of greenhouse-gas emissions. The legislation is designed to help hard-hit industries, handing out free allowances to factories and for the development of "clean coal" technology to remove carbon-dioxide from emissions.

Sen. Max Baucus, (D., Mont.), whose Senate Finance Committee has jurisdiction over some parts of the bill, said he supported measures that would provide billions for "clean coal" technology. That, and other measures setting performance standards for power plants, "are one example where the middle lies on climate legislation." Baucus said he hoped to "mirror" that success in other parts of the bill.

Under the Senate bill, greenhouse-gas emissions would decline 20% below 2005 levels by 2020 and by more than 80% by 2050. Coal-state Democrats such as Baucus, as well as many businesses, believe the near-term goals are too ambitious and want Boxer to pull back. The concern is that "clean coal" technologies such as carbon capture and sequestration will not be commercially available at a time when deep emissions reductions take hold.

"This bill kills the coal industry," said Mike Carey, president of the Ohio Coal Association. "Simply throwing some funding at CCS is not going to make the technology available prior to 2020 or 2030."

Exelon Corp. (EXC) Chief Executive John Rowe, who supports climate legislation, had some similar concerns.

"We do not expect substantial deployment of either new nuclear generating stations or new coal generation stations with carbon capture and sequestration in a time frame that will achieve the results mandated by the draft," Rowe testified. He called for reducing emissions 14% by 2020, rather than 20%.

Republican frustration threatens to slow down action because Inhofe, the ranking Republican on the panel, has threatened to block a vote unless more analysis is provided on the bill. Democrats say Republican criticisms are without merit.

-By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Siobhan.Hughes@dowjones.com