Last night, 26 Democrats in the Senate joined all 41 Republicans to require any cap-and-trade provision to be subject to the 60-vote requirement of the Budget Act of 1974 (which is what requires budget bills in the Senate to get a 60 vote super-majority to pass). It seems that Democrats from the Rust Belt and farm states states took President Obama at his word:
"Under my plan of a cap and trade system, electricity rates would necessarily skyrocket." (January 2008, SF Chronicle)
So, it's not going to happen the easy way through the reconciliation process and given the really large number of Democrat votes on this procedural matter, it would seem that cap-and-trade is dead for this session. A tactical victory in a strategic struggle.
Hat tip: HotAir