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Full Senate Begins Debating Condoleezza's Rice's Nomination as Secretary of State; Violence Underlines Election's Security Concerns

Aired January 25, 2005 - 10:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


TONY HARRIS, CNN ANCHOR: And Bill and Melinda Gates' foundations is donating $750 million for immunization programs in the third world. The money will be used to buy and distribute vaccines for diseases such as diphtheria, tetanus and whooping coughs. Gates is calling on vaccine makers to help eradicate illnesses still plaguing underdeveloped countries, but mostly gone from industrialized nations.
DARYN KAGAN, CNN ANCHOR: Just a few minutes from now, the full Senate begins debating Condoleezza's Rice's nomination as secretary of state, a live picture there, Senator Joe Lieberman of Connecticut. And though the confirmation is pretty much expected, Democrats will still take their shots, nine hours worth of debate. About half of that for the Democrats.

Our man on Capitol Hill is Ed Henry, of course, and he is picking up the story. So we know how the story ends, but first we have to sit through all the middle part, right, Ed?

ED HENRY, CNN CORRESPONDENT: That's right, Daryn. Basically, everything has been said, just not everyone has said it. Believe me, they're going to say it over those nine hours. Some people wondering why after Democrats like Barbara Boxer had two full days last week to grill Condoleezza Rice, why do they need nine more hours. Democrats say that since they're out of power here on Capitol Hill, they really don't have a forum to raise questions about policy differences with the administration, particularly on Iraq. So they want to use this confirmation process to not just question Condoleezza Rice specifically as to how she will be as secretary of state, but they also want to ask some tough questions about the administration overall.

And Barbara Boxer herself this morning told CNN that she's very concerned, she believes that Dr. Rice did not fully level with the Senate Foreign Relations Committee last week during those confirmation hearings, and that's why they're going to ask more questions today.

(BEGIN VIDEO CLIP)

SEN. BARBARA BOXER (D), CALIFORNIA: I'm going to tell my colleagues, as I have to, what occurred at that hearing. I'm going to pose the questions I asked, and then I'm going to be able to show what her answers were, or in many cases non-answers were.

(END VIDEO CLIP)

HENRY: Now, Republicans say this is really just petty partisanship and overkill, it's time to get going. In fact, Republicans say Democrats are playing politics on national security. And now is not the time to be delaying the confirmation of a secretary of state. Here is Senate Majority Leader Bill Frist from this morning.

(BEGIN VIDEO CLIP)

SEN. BILL FRIST (R-TN), SENATE MAJORITY LEADER: We are a nation at war. A secretary of state Dr. Rice will be a key player in winning this war. She will have the responsibility of advancing democracy and freedom across the globe, not only to protect us from attack, but to fulfill America's unique moral purpose.

(END VIDEO CLIP)

HENRY: So, Daryn, nine more hours of rhetoric today from both sides, and then a vote finally by the full Senate tomorrow. You can expect Condoleezza Rice to be sworn in very quickly after that. President Bush wanting to get his second term off, hit the ground running -- Daryn.

KAGAN: All right, Ed Henry, question of the day -- if the Democrats don't have the power they say they want on Capitol Hill, how do they even stretch this nomination process into this nine-hour extension?

HENRY: Well, this is just kind of a procedural matter, basically. I mean, last week President Bush wanted to get Condoleezza Rice confirmed on Thursday. Democrats, because they can basically filibuster, threw out a little bit of a threat, and said they were going to drag debate out last Thursday night, which is when Republicans wanted to head out to the inaugural balls. So rather than have a little dust up on the first day of the new administration, Republicans decided to push it up to next week.

So maybe a small, little victory, you're right, for the Democrats, even though they don't have much power these days. But the bottom line is that Democrats want to, if nothing else, launch a symbolic fight here to show that they're not going to roll over in this second term. A lot of criticism within the Democratic Party that maybe the leaders up here on Hill did not push back hard enough in first term against President Bush. They want to show right off the bat they're going to go a little bit tougher now -- Daryn.

KAGAN: Ed Henry on Capitol Hill. Thank you, Ed.

HARRIS: Insurgents in Iraq today gunned down a high ranking judge in a drive-by shooting that underlines and underscores the volatility surrounding Sunday's nationwide elections. With only five days before that historic milestone, the focus increasingly turns to the next stage, how to improve the chances for that fledgling democracy.

CNN Pentagon correspondent Barbara Starr takes a look.

(BEGIN VIDEOTAPE) BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice over): As the violence continues just days before the election, the U.S. military is now stepping up efforts to improve the Iraqi security forces' capability to fight for their country. Key to the plan? U.S. military and police advisory teams will be attached directly to Iraqi units to fight the insurgency together. One potential option planners are considering?

BRIG. GEN. MARK KIMMITT, DEP. DIR., U.S. CENTRAL COMMAND: The numbers that we have been working with are somewhere in the order 200 to 250 of these teams and roughly 10 men per team. So, we're talking in total somewhere between 2,200 and 2,700 personnel involved in this process.

STARR: The hope is by making U.S. troops part of Iraqi units, it will increase the Iraqis' confidence. One key advantage? The U.S. will bring along its own firepower.

KIMMITT: If necessary, if the unit needs it, they can bring in artillery support. They can call in for close-air support.

STARR: Officials say the plan is absolutely not the beginning of a strategy to withdraw from combat in favor of training, and that the Iraqis privately tell the Americans they want the U.S. to stay. The U.S. and Iraqis say they still plan to win against the insurgency.

KIMMITT: It won't be black, white, win, lose. First of all, we will not lose. It will be more of a gradual process. We will know that we have achieved the military requirements in Iraq when the Iraqi security forces are capable of taking on all the internal and external security needs for their country.

(END VIDEOTAPE)

STARR: But, Tony, what if the Iraqis can't take over any time soon? Officials here at the Pentagon say that the Army is prepared to keep 120,000 U.S. soldiers in Iraq for the next two years, if they are needed -- Tony.

HARRIS: Well, Barbara, that begs the question, how difficult is it going to be to maintain that troop level?

STARR: Well, there are going to be some challenges, as the Army says, that are already emerging in keeping that troop level at that state. And it is the National Guard. The very last of what they call the enhanced National Guard units is going to go to Iraq this summer. Tony, those are the units that have the most capability, the most modern equipment, the best trained National Guard troops, those citizen soldiers. They're going to be all used up by this summer. And that means that they're going to have to dip further down into National Guard units that may not be as well trained. It's going to take extra time to get them ready for Iraq, and the Army says it is a challenge, they're going to meet it, but they know they have that problem looming.

HARRIS: That sounds like a huge challenge. Barbara Starr at the Pentagon. Barbara, thank you.

KAGAN: So when you go to the market, paper or plastic?

HARRIS: Plastic.

KAGAN: Plastic. Well, you better listen in then, because now it's not just a question of paper or plastic; it's also a question about getting a little more complicated than that. Would you pay to have that plastic? To pay or not to pay? That's the question. Some shoppers may be forced to cough up cash, or find another way to carry their groceries. That's story's coming up.

HARRIS: And the Hollywood gold rush is on. Who's up for an Oscar and who is left out? All of the surprises, and there were plenty, from this morning's nominations. That story coming up.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

KAGAN: Let's take a look at other stories making news from coast to coast.

HARRIS: Starting with an update on the NBA "Basket Brawl." Five Indiana Pacers players and five Detroit Pistons fans will make an appearance in the same Michigan courtroom today. One fan faces a felony charge for allegedly throwing a chair during the fight. Look at that. Oh, boy. The other nine in court have been charged with misdemeanors.

KAGAN: Check this out from Tucson, Arizona. A suspect said he tried to do what police told him and he kept getting shot by police using pepper ball guns. Officers used the non-lethal weapon, believing the suspect was armed. He wasn't. So Tucson police officers say they are trained to keep firing rounds until the suspect obeys commands. A police investigation is under way into the incident. Ouch.

HARRIS: You know what? It could be a nip tuck tax for Washington state residents. One lawmaker's proposing a vanity tax on cosmetic surgery. Revenue from procedures like Botox and hair transplants would help pay for children's health care. A similar tax raises $20 million a year in New Jersey.

KAGAN: Notice they aren't proposing that in Hollywood right before the Oscars. No, no, no.

All right, paper or plastic? This one's also coming from California. That may become a more expensive question for shoppers in San Francisco. The city is expected to consider a plan today that would make stores charge you for those plastic bags. But why? Well, let's get the answers now from Rita Williams of our affiliate KTVU. And she's reporting from San Francisco.

(BEGIN VIDEOTAPE) RITA WILLIAMS, REPORTER, KTVU (voice over): San Francisco, full of spectacular sights. The pyramid, cable cars that go halfway to the stars. Soon also maybe known as the first American city to charge a fee for grocery bags.

JARED BLUMENFELD, SAN FRANCISCO ENVIRONMENT DEPT: What we're trying to do here in San Francisco is to say do we need to be using 50 million paper and plastic bags every year? What happens to those? It's very hard to recycle them. A lot end up on the street. We have increasing litter problems.

WILLIAMS: It won't be a question of whether it's paper or plastic. The proposed fee to discourage usage at large grocery stores will be the same for either, 17 cents a bag.

UNIDENTIFIED MALE: I'm against it. I think it's silly.

UNIDENTIFIED MALE: Like, 17 cents is like really too much money.

UNIDENTIFIED FEMALE: That's outrageous. It really is. It should be free.

WILLIAMS: But those who favor the fee say overuse of the bags carries its own cost for litter pickup, recycling and higher grocery prices.

UNIDENTIFIED MALE: I think it's a good idea because it just makes people more conscious about the environment.

UNIDENTIFIED MALE: It's not a bad idea as long as you're allowed to bring your own plastic and/or paper bags back and they can get used all over again.

UNIDENTIFIED FEMALE: Well, I bring my own bag then, huh? Then I save some.

WILLIAMS: And that's just what city officials hope happens, that people bring their own reusable bags. They say that's what happened in Ireland, where a 15 cent fee for plastic bags cut usage by 90 percent.

UNIDENTIFIED MALE: This bag cost me $1. And it will last my whole life.

WILLIAMS: But the California Grocers Association says the fee really is a regressive tax and that smaller markets, department stores and restaurants that use the bags are not included, at least not yet.

PAUL SMITH, RETAIL GROCERS ASSOCIATION: This is a dramatic increase, a dramatic increase for our customers to pay. Going from, you know, a fraction of a penny or a penny to 17 cents per bag.

WILLIAMS: And he says all those people who already reuse grocery bags as pooper scoopers, trash can liners and diaper wrappers will just buy boxes of cheaper bags and that won't reduce usage.

(END VIDEOTAPE)

KAGAN: Something we deal with every day.

HARRIS: And now -- I hadn't thought about it. But now I guess I should really think about it.

KAGAN: Well, if nothing else, it's making you think about it.

HARRIS: 17 cents, though.

KAGAN: That would add up.

HARRIS: That's hefty.

KAGAN: Well, that report was from Rita Williams from our affiliate KTVU out of San Francisco.

OK, talk about showing the love from Hollywood. Clint Eastwood, yes. Jamie Foxx, yes. Mel Gibson and Michael Moore, not so much. No love. Well, we're going to break down the Oscar buzz for you. Tom O'Neil, goldderby.com and "In Touch" magazine, he is with me, just coming up, in just a bit.

Also this is what we're working on for next hour.

(COMMERCIAL BREAK)

KAGAN: The rush really is on. Now Hollywood's gold rush has been just over two hours since the nominees were announced for the film industry's most prestigious award, the Oscar. For some expert analysis on the Hollywood drama, we turn to Tom O'Neil, book author and senior editor of "In Touch Weekly," also goldderby.com, that is the Web site to go if you're interested in how this all works.

Good morning.

TOM O'NEIL, AUTHOR, "MOVIE AWARDS": Good morning, Daryn.

KAGAN: It is a big morning. Let's start by talking about who is not there, no "Passion of the Christ," no Mel Gibson, no "Fahrenheit 9/11" and no Michael Moore, the two most talked about movies of the year. Hollywood says, uh, never mind.

O'NEIL: Well, they're not in the top categories, you're right about that, because the interesting thing that Michael Moore pulled this year with "Fahrenheit 9/11" is he did not enter the documentary race because he wanted that best picture prize. He could have, by the way, shown up in the screenplay races, and he didn't.

"Passion of the Christ" did no campaigning at all. Mel Gibson said he wasn't interested. He said if they love this movie, he'd be more than glad to see it at the Oscars, but he didn't actually go out there and do any tub thumping. Nonetheless, "Passion of the Christ" got three nominations in the tech categories, for music, for makeup, for cinematography. So even though it didn't ask to be in the game, it's going to be there in three slots.

KAGAN: So it will be there a little bit.

So the big story, I guess, is "The Aviator" with 11 nominations.

O'NEIL: And it's the big story because in the past 20 years of Oscar history, the movie with the most nominations has won best picture 18 times. This movie has already won best picture at the Golden Globes, at The Producers Guild, but support for it is waning slightly. And people don't love this movie. They like it, they admire it, but beware, Daryn, no movie about Hollywood has ever won Hollywood's top prize. And, of course, this is a story of Hollywood, because it's the store of Howard Hughes, who bought his way into the town.

KAGAN: There you go.

Now let's get to the acting categories, Best actor. The buzz about one person who's in, Clint Eastwood, a lot of people not expecting that, but a key performance not included this year.

O'NEIL: Yes, Paul Giamatti from "Sideways" was bumped by Clint Eastwood. You know, Clint gets no respect at all for being an actor. He was nominated once before for "Unforgiven." He's never been nominated at all at the Golden Globes. Paul Giamatti has swept the critics awards. We see him here in "Sideways," so it is surprising that he wasn't in this lineup.

KAGAN: Because there were two best supporting nominations for that movie, in best supporting actor and best supporting actress.

O'NEIL: Yes. So we see Thomas Hayden Church, for example in the supporting actor category, as you mention, and Virginia Madsen in supporting actress. So there's lots of love for "Sideways" across the board here, but just not for poor Paul.

KAGAN: Poor Paul. Well, he'll going to get lots of love anyway. OK, best actress, Hilary Swank had better put on those boxing gloves again, because it is a rematch, it is a showdown with Annette Bening.

O'NEIL: It is. This is a fascinating rematch, too. Five years ago when "American Beauty" swept the Oscars, it won't every major category, except one -- it lost best actress. And Annette Bening away defeated by Hilary Swank, who came out of nowhere with "Boys Don't Cry." So now Annette is out for revenge. But you know, she's losing steam, Daryn; if you saw those Golden Globes, she gave a very dull acceptance speech, and a lot of people are talking about that.

Hillary is, meanwhile, coming on strong again. People, on one hand, are saying, well, she's no Sally Field, as kind of a joke, really. But on the other hand, she could end up with two Oscars.

KAGAN: Real quickly, in terms of two Oscars, we have to mention Jamie Foxx, because he has two nominations, both in the best supporting actor and best actor category.

O'NEIL: Yes, he was a breakout star this year. So this is no surprise.

KAGAN: We'll be watching, and you'll be watching Oscar night, Tom O'Neil, goldderby.com. Thanks, always good to have you on to get your perspective.

And for more on the Oscars, including a full list of the nominees and their categories, as well as reaction from Hollywood insiders, visit our continually updated Web site. The address is CNN.com/entertainment.

HARRIS: I'm excited.

KAGAN: Tom O'Neil can explain it to you. It is like crossing swords with an NFL expert. Yes, he can tell you about some obscure festival that took place years ago and how that affects the Oscars on February 27th.

HARRIS: Got me wrapped up.

OK, let me check the clock here. It is 7:55 on the West Coast, where people are waking up to all of this Oscar nomination buzz, and 10:55 in the east, where thousand are still digging out from a big snowstorm. Oscars, snow, oh my goodness.

KAGAN: We've got everything in between. Stay with us. We'll be back with a quick check of the morning forecast.

(COMMERCIAL BREAK)

(WEATHER REPORT)

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Aired January 25, 2005 - 10:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And Bill and Melinda Gates' foundations is donating $750 million for immunization programs in the third world. The money will be used to buy and distribute vaccines for diseases such as diphtheria, tetanus and whooping coughs. Gates is calling on vaccine makers to help eradicate illnesses still plaguing underdeveloped countries, but mostly gone from industrialized nations.
DARYN KAGAN, CNN ANCHOR: Just a few minutes from now, the full Senate begins debating Condoleezza's Rice's nomination as secretary of state, a live picture there, Senator Joe Lieberman of Connecticut. And though the confirmation is pretty much expected, Democrats will still take their shots, nine hours worth of debate. About half of that for the Democrats.

Our man on Capitol Hill is Ed Henry, of course, and he is picking up the story. So we know how the story ends, but first we have to sit through all the middle part, right, Ed?

ED HENRY, CNN CORRESPONDENT: That's right, Daryn. Basically, everything has been said, just not everyone has said it. Believe me, they're going to say it over those nine hours. Some people wondering why after Democrats like Barbara Boxer had two full days last week to grill Condoleezza Rice, why do they need nine more hours. Democrats say that since they're out of power here on Capitol Hill, they really don't have a forum to raise questions about policy differences with the administration, particularly on Iraq. So they want to use this confirmation process to not just question Condoleezza Rice specifically as to how she will be as secretary of state, but they also want to ask some tough questions about the administration overall.

And Barbara Boxer herself this morning told CNN that she's very concerned, she believes that Dr. Rice did not fully level with the Senate Foreign Relations Committee last week during those confirmation hearings, and that's why they're going to ask more questions today.

(BEGIN VIDEO CLIP)

SEN. BARBARA BOXER (D), CALIFORNIA: I'm going to tell my colleagues, as I have to, what occurred at that hearing. I'm going to pose the questions I asked, and then I'm going to be able to show what her answers were, or in many cases non-answers were.

(END VIDEO CLIP)

HENRY: Now, Republicans say this is really just petty partisanship and overkill, it's time to get going. In fact, Republicans say Democrats are playing politics on national security. And now is not the time to be delaying the confirmation of a secretary of state. Here is Senate Majority Leader Bill Frist from this morning.

(BEGIN VIDEO CLIP)

SEN. BILL FRIST (R-TN), SENATE MAJORITY LEADER: We are a nation at war. A secretary of state Dr. Rice will be a key player in winning this war. She will have the responsibility of advancing democracy and freedom across the globe, not only to protect us from attack, but to fulfill America's unique moral purpose.

(END VIDEO CLIP)

HENRY: So, Daryn, nine more hours of rhetoric today from both sides, and then a vote finally by the full Senate tomorrow. You can expect Condoleezza Rice to be sworn in very quickly after that. President Bush wanting to get his second term off, hit the ground running -- Daryn.

KAGAN: All right, Ed Henry, question of the day -- if the Democrats don't have the power they say they want on Capitol Hill, how do they even stretch this nomination process into this nine-hour extension?

HENRY: Well, this is just kind of a procedural matter, basically. I mean, last week President Bush wanted to get Condoleezza Rice confirmed on Thursday. Democrats, because they can basically filibuster, threw out a little bit of a threat, and said they were going to drag debate out last Thursday night, which is when Republicans wanted to head out to the inaugural balls. So rather than have a little dust up on the first day of the new administration, Republicans decided to push it up to next week.

So maybe a small, little victory, you're right, for the Democrats, even though they don't have much power these days. But the bottom line is that Democrats want to, if nothing else, launch a symbolic fight here to show that they're not going to roll over in this second term. A lot of criticism within the Democratic Party that maybe the leaders up here on Hill did not push back hard enough in first term against President Bush. They want to show right off the bat they're going to go a little bit tougher now -- Daryn.

KAGAN: Ed Henry on Capitol Hill. Thank you, Ed.

HARRIS: Insurgents in Iraq today gunned down a high ranking judge in a drive-by shooting that underlines and underscores the volatility surrounding Sunday's nationwide elections. With only five days before that historic milestone, the focus increasingly turns to the next stage, how to improve the chances for that fledgling democracy.

CNN Pentagon correspondent Barbara Starr takes a look.

(BEGIN VIDEOTAPE) BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice over): As the violence continues just days before the election, the U.S. military is now stepping up efforts to improve the Iraqi security forces' capability to fight for their country. Key to the plan? U.S. military and police advisory teams will be attached directly to Iraqi units to fight the insurgency together. One potential option planners are considering?

BRIG. GEN. MARK KIMMITT, DEP. DIR., U.S. CENTRAL COMMAND: The numbers that we have been working with are somewhere in the order 200 to 250 of these teams and roughly 10 men per team. So, we're talking in total somewhere between 2,200 and 2,700 personnel involved in this process.

STARR: The hope is by making U.S. troops part of Iraqi units, it will increase the Iraqis' confidence. One key advantage? The U.S. will bring along its own firepower.

KIMMITT: If necessary, if the unit needs it, they can bring in artillery support. They can call in for close-air support.

STARR: Officials say the plan is absolutely not the beginning of a strategy to withdraw from combat in favor of training, and that the Iraqis privately tell the Americans they want the U.S. to stay. The U.S. and Iraqis say they still plan to win against the insurgency.

KIMMITT: It won't be black, white, win, lose. First of all, we will not lose. It will be more of a gradual process. We will know that we have achieved the military requirements in Iraq when the Iraqi security forces are capable of taking on all the internal and external security needs for their country.

(END VIDEOTAPE)

STARR: But, Tony, what if the Iraqis can't take over any time soon? Officials here at the Pentagon say that the Army is prepared to keep 120,000 U.S. soldiers in Iraq for the next two years, if they are needed -- Tony.

HARRIS: Well, Barbara, that begs the question, how difficult is it going to be to maintain that troop level?

STARR: Well, there are going to be some challenges, as the Army says, that are already emerging in keeping that troop level at that state. And it is the National Guard. The very last of what they call the enhanced National Guard units is going to go to Iraq this summer. Tony, those are the units that have the most capability, the most modern equipment, the best trained National Guard troops, those citizen soldiers. They're going to be all used up by this summer. And that means that they're going to have to dip further down into National Guard units that may not be as well trained. It's going to take extra time to get them ready for Iraq, and the Army says it is a challenge, they're going to meet it, but they know they have that problem looming.

HARRIS: That sounds like a huge challenge. Barbara Starr at the Pentagon. Barbara, thank you.

KAGAN: So when you go to the market, paper or plastic?

HARRIS: Plastic.

KAGAN: Plastic. Well, you better listen in then, because now it's not just a question of paper or plastic; it's also a question about getting a little more complicated than that. Would you pay to have that plastic? To pay or not to pay? That's the question. Some shoppers may be forced to cough up cash, or find another way to carry their groceries. That's story's coming up.

HARRIS: And the Hollywood gold rush is on. Who's up for an Oscar and who is left out? All of the surprises, and there were plenty, from this morning's nominations. That story coming up.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

KAGAN: Let's take a look at other stories making news from coast to coast.

HARRIS: Starting with an update on the NBA "Basket Brawl." Five Indiana Pacers players and five Detroit Pistons fans will make an appearance in the same Michigan courtroom today. One fan faces a felony charge for allegedly throwing a chair during the fight. Look at that. Oh, boy. The other nine in court have been charged with misdemeanors.

KAGAN: Check this out from Tucson, Arizona. A suspect said he tried to do what police told him and he kept getting shot by police using pepper ball guns. Officers used the non-lethal weapon, believing the suspect was armed. He wasn't. So Tucson police officers say they are trained to keep firing rounds until the suspect obeys commands. A police investigation is under way into the incident. Ouch.

HARRIS: You know what? It could be a nip tuck tax for Washington state residents. One lawmaker's proposing a vanity tax on cosmetic surgery. Revenue from procedures like Botox and hair transplants would help pay for children's health care. A similar tax raises $20 million a year in New Jersey.

KAGAN: Notice they aren't proposing that in Hollywood right before the Oscars. No, no, no.

All right, paper or plastic? This one's also coming from California. That may become a more expensive question for shoppers in San Francisco. The city is expected to consider a plan today that would make stores charge you for those plastic bags. But why? Well, let's get the answers now from Rita Williams of our affiliate KTVU. And she's reporting from San Francisco.

(BEGIN VIDEOTAPE) RITA WILLIAMS, REPORTER, KTVU (voice over): San Francisco, full of spectacular sights. The pyramid, cable cars that go halfway to the stars. Soon also maybe known as the first American city to charge a fee for grocery bags.

JARED BLUMENFELD, SAN FRANCISCO ENVIRONMENT DEPT: What we're trying to do here in San Francisco is to say do we need to be using 50 million paper and plastic bags every year? What happens to those? It's very hard to recycle them. A lot end up on the street. We have increasing litter problems.

WILLIAMS: It won't be a question of whether it's paper or plastic. The proposed fee to discourage usage at large grocery stores will be the same for either, 17 cents a bag.

UNIDENTIFIED MALE: I'm against it. I think it's silly.

UNIDENTIFIED MALE: Like, 17 cents is like really too much money.

UNIDENTIFIED FEMALE: That's outrageous. It really is. It should be free.

WILLIAMS: But those who favor the fee say overuse of the bags carries its own cost for litter pickup, recycling and higher grocery prices.

UNIDENTIFIED MALE: I think it's a good idea because it just makes people more conscious about the environment.

UNIDENTIFIED MALE: It's not a bad idea as long as you're allowed to bring your own plastic and/or paper bags back and they can get used all over again.

UNIDENTIFIED FEMALE: Well, I bring my own bag then, huh? Then I save some.

WILLIAMS: And that's just what city officials hope happens, that people bring their own reusable bags. They say that's what happened in Ireland, where a 15 cent fee for plastic bags cut usage by 90 percent.

UNIDENTIFIED MALE: This bag cost me $1. And it will last my whole life.

WILLIAMS: But the California Grocers Association says the fee really is a regressive tax and that smaller markets, department stores and restaurants that use the bags are not included, at least not yet.

PAUL SMITH, RETAIL GROCERS ASSOCIATION: This is a dramatic increase, a dramatic increase for our customers to pay. Going from, you know, a fraction of a penny or a penny to 17 cents per bag.

WILLIAMS: And he says all those people who already reuse grocery bags as pooper scoopers, trash can liners and diaper wrappers will just buy boxes of cheaper bags and that won't reduce usage.

(END VIDEOTAPE)

KAGAN: Something we deal with every day.

HARRIS: And now -- I hadn't thought about it. But now I guess I should really think about it.

KAGAN: Well, if nothing else, it's making you think about it.

HARRIS: 17 cents, though.

KAGAN: That would add up.

HARRIS: That's hefty.

KAGAN: Well, that report was from Rita Williams from our affiliate KTVU out of San Francisco.

OK, talk about showing the love from Hollywood. Clint Eastwood, yes. Jamie Foxx, yes. Mel Gibson and Michael Moore, not so much. No love. Well, we're going to break down the Oscar buzz for you. Tom O'Neil, goldderby.com and "In Touch" magazine, he is with me, just coming up, in just a bit.

Also this is what we're working on for next hour.

(COMMERCIAL BREAK)

KAGAN: The rush really is on. Now Hollywood's gold rush has been just over two hours since the nominees were announced for the film industry's most prestigious award, the Oscar. For some expert analysis on the Hollywood drama, we turn to Tom O'Neil, book author and senior editor of "In Touch Weekly," also goldderby.com, that is the Web site to go if you're interested in how this all works.

Good morning.

TOM O'NEIL, AUTHOR, "MOVIE AWARDS": Good morning, Daryn.

KAGAN: It is a big morning. Let's start by talking about who is not there, no "Passion of the Christ," no Mel Gibson, no "Fahrenheit 9/11" and no Michael Moore, the two most talked about movies of the year. Hollywood says, uh, never mind.

O'NEIL: Well, they're not in the top categories, you're right about that, because the interesting thing that Michael Moore pulled this year with "Fahrenheit 9/11" is he did not enter the documentary race because he wanted that best picture prize. He could have, by the way, shown up in the screenplay races, and he didn't.

"Passion of the Christ" did no campaigning at all. Mel Gibson said he wasn't interested. He said if they love this movie, he'd be more than glad to see it at the Oscars, but he didn't actually go out there and do any tub thumping. Nonetheless, "Passion of the Christ" got three nominations in the tech categories, for music, for makeup, for cinematography. So even though it didn't ask to be in the game, it's going to be there in three slots.

KAGAN: So it will be there a little bit.

So the big story, I guess, is "The Aviator" with 11 nominations.

O'NEIL: And it's the big story because in the past 20 years of Oscar history, the movie with the most nominations has won best picture 18 times. This movie has already won best picture at the Golden Globes, at The Producers Guild, but support for it is waning slightly. And people don't love this movie. They like it, they admire it, but beware, Daryn, no movie about Hollywood has ever won Hollywood's top prize. And, of course, this is a story of Hollywood, because it's the store of Howard Hughes, who bought his way into the town.

KAGAN: There you go.

Now let's get to the acting categories, Best actor. The buzz about one person who's in, Clint Eastwood, a lot of people not expecting that, but a key performance not included this year.

O'NEIL: Yes, Paul Giamatti from "Sideways" was bumped by Clint Eastwood. You know, Clint gets no respect at all for being an actor. He was nominated once before for "Unforgiven." He's never been nominated at all at the Golden Globes. Paul Giamatti has swept the critics awards. We see him here in "Sideways," so it is surprising that he wasn't in this lineup.

KAGAN: Because there were two best supporting nominations for that movie, in best supporting actor and best supporting actress.

O'NEIL: Yes. So we see Thomas Hayden Church, for example in the supporting actor category, as you mention, and Virginia Madsen in supporting actress. So there's lots of love for "Sideways" across the board here, but just not for poor Paul.

KAGAN: Poor Paul. Well, he'll going to get lots of love anyway. OK, best actress, Hilary Swank had better put on those boxing gloves again, because it is a rematch, it is a showdown with Annette Bening.

O'NEIL: It is. This is a fascinating rematch, too. Five years ago when "American Beauty" swept the Oscars, it won't every major category, except one -- it lost best actress. And Annette Bening away defeated by Hilary Swank, who came out of nowhere with "Boys Don't Cry." So now Annette is out for revenge. But you know, she's losing steam, Daryn; if you saw those Golden Globes, she gave a very dull acceptance speech, and a lot of people are talking about that.

Hillary is, meanwhile, coming on strong again. People, on one hand, are saying, well, she's no Sally Field, as kind of a joke, really. But on the other hand, she could end up with two Oscars.

KAGAN: Real quickly, in terms of two Oscars, we have to mention Jamie Foxx, because he has two nominations, both in the best supporting actor and best actor category.

O'NEIL: Yes, he was a breakout star this year. So this is no surprise.

KAGAN: We'll be watching, and you'll be watching Oscar night, Tom O'Neil, goldderby.com. Thanks, always good to have you on to get your perspective.

And for more on the Oscars, including a full list of the nominees and their categories, as well as reaction from Hollywood insiders, visit our continually updated Web site. The address is CNN.com/entertainment.

HARRIS: I'm excited.

KAGAN: Tom O'Neil can explain it to you. It is like crossing swords with an NFL expert. Yes, he can tell you about some obscure festival that took place years ago and how that affects the Oscars on February 27th.

HARRIS: Got me wrapped up.

OK, let me check the clock here. It is 7:55 on the West Coast, where people are waking up to all of this Oscar nomination buzz, and 10:55 in the east, where thousand are still digging out from a big snowstorm. Oscars, snow, oh my goodness.

KAGAN: We've got everything in between. Stay with us. We'll be back with a quick check of the morning forecast.

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