• This is a rush transcript from "Your World with Neil Cavuto," June 4, 2008. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: Well, gas driving to yet another new record today. Prices at the pump now less than 2 cents shy of 4 bucks a gallon. Gas is up 31 percent since the start of the year.

    And forget the pain you're feeling at the pump right now. Some say the prices could double if a climate security bill being debated right now in the Senate is approved. It seeks to slash greenhouse gases by 66 percent.

    And a first on FOX, the sponsors of that bill, Senators John Warner and Joe Lieberman.

    Senators, welcome to both of you. Thank you for coming.

    SEN. JOSEPH LIEBERMAN (I), CONNECTICUT: Thank you, Neil.

    Video: Watch Neil's interview

    CAVUTO: Senator Lieberman, if I can begin with you, many have argued that, while this has good merit, it's coming at a bad time. We're paying through the nose at the pump. Utility bills are driving a lot of folks nuts. And now you're introducing legislation that could drive those prices up all the more.

    What do you say?

    LIEBERMAN: Well, first, the bill does have merit. And I appreciate your referencing that. It's got a purpose. It is to reduce the carbon pollution that is causing global warming. And that's a responsibility we have to future generations of Americans.

    But, second, the run-up in gas prices is not caused by our bill. The gas prices has gone up 82 cents a gallon since the 1st of January. The fact is, that, if this bill passes, at most, gas prices will be increased by 2 cents a gallon a year. But what's more important is, that money will be reinvested in the kinds of new technologies, new fuel systems, electric cars, hybrids and biofuels, all the rest, that actually will reduce the demand for foreign oil, and, I think, as a result, bring down the price of gasoline.

    So, our bill, I think, rather than increasing the price of gas, will actually drop it.

    CAVUTO: Well, as you know, it's always in the eye of the beholder, Senator.

    And, Senator Warner, it's a point I want to raise with you, because the National Association of Manufacturers, a group generally friendly to Republicans, is aghast at your support of legislation they predict will double the price of gas to $8 per gallon.

    What do you say?

    SEN. JOHN WARNER (R), VIRGINIA: Well, it's a lot of scare tactics.

    In the first place, this bill, if it were signed by the president tomorrow, wouldn't take effect until 2012, three-and-a-half years from now. And gas, unfortunately, will have fluctuations one way or another, not as a result of this bill, but many other factors between now and 2012.

    So, this is purely a scare tactic.

    As a colleague, my good friend and partner said, Joe Lieberman, gas has risen 82 cents this year. And it is not because of the climate change legislation being considered here in the Congress.

    CAVUTO: No, but I guess their point, gentlemen — and back to you, Senator Lieberman, on this — is that it's a bad time to propose something like this. Yes, the Earth might need to go green, but we don't need to spend a lot of green to make that happen.

    And some are saying that, over the years, this will be a multitrillion-dollar boondoggle. And on a day, Senator Lieberman, you have Democrats proposing a $3 trillion budget that takes away a lot of the president's tax cuts, is this just lousy timing?

    LIEBERMAN: I don't think so, Neil, because the fact is, we have got a problem. And the carbon pollution that`s gone into the atmosphere up until now doesn't evaporate. It stays there. Some global warming is inevitable.

    Every — all the experts tell us that, the sooner we act on this, the better. And you can't — this is a bill that will go for 40 years. It's methodical. It doesn't mean to shock our system. It means to slowly wean us off of carbon-polluting fuels.

    And I think John is right. You've got to think of it as three-and-a-half years before this takes effect, plenty of time for our economy to recover, hopefully for gas prices to go down, and to be ready to do this.

    CAVUTO: Yes.

    But let me ask you, to that point, Senator Lieberman, has Al Gore talked to you about this? Because I know you guys kind of had this little agita thing going.

    Now, on this, are you in simpatico, or what?

    LIEBERMAN: Yes, I would say we're simpatico. I think, in this regard, I took some antacids to remove the agita.

    (LAUGHTER)

    LIEBERMAN: No, you know...

    CAVUTO: All right.

    WARNER: He came and testified before our committee.

    You remember that, Senator.

    CAVUTO: That's right.

    LIEBERMAN: That's right.

    And I think he's happy with this legislation. Frankly, he would like it to be a little more aggressive.

    But John and I have put together what we consider to be a middle-of- the-road, balanced approach to this. I hope it will be adopted.

    CAVUTO: OK.

    Senator Warner, there are a lot of U.S. business interests and the like that have contacted me, both on Fox News Channel and Fox Business Network, saying — you notice how I got the plug in for the latter, gentlemen — saying that...

    LIEBERMAN: Good work.