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CNN Live At Daybreak

Aruba Beach Search Yields Nothing; Animals in the Air; Gas Guzzler Tax

Aired June 15, 2005 - 06:31   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.


ANNOUNCER: From the Time Warner center in New York, this is DAYBREAK, with Carol Costello and Chad Myers.
CAROL COSTELLO, CNN ANCHOR: And good morning, everyone. Thank you for waking up with us.

Coming up this half-hour, airlines are getting more friendly with their four-legged fliers. And starting today, they're throwing a bone to pet owners.

Plus, your gas-guzzling SUV can prove to be very taxing, literally. We'll tell you why.

But first, "Now in the News."

Word coming in about an hour ago, Australian Douglas Wood, a civilian contractor abducted six weeks ago in Iraq, has been freed. Australia's prime minister announced Wood's release to parliament. A U.S. military official says Wood was freed as part of a military operation. Wood lives on the U.S. West Coast.

Police in Spain say they have arrested 16 suspected Islamic terrorists, including five believed to be linked to last year's Madrid train bombings. Authorities say 11 of the suspects are linked to the terrorist group headed by Abu Musab al-Zarqawi. He's al Qaeda's main operative in Iraq.

President Bush says his energy plan will give you more options and make U.S. more energy-independent and efficient. He's urging Congress to stop stalling and pass a national energy bill.

To the forecast center now.

(WEATHER REPORT)

COSTELLO: Some residents on the West Coast were holding their breath last night after a 7-magnitude quake hit 90 miles offshore. The quake was about 300 miles northwest of Sacramento, triggering a tsunami warning that was lifted about an hour later. The quake hit shortly before 11:00 p.m. Eastern Time.

This is video from the effects of the quake. Authorities say no damage or injuries are reported, despite all of the shaking.

One California resident watched the coast for those tsunami waves that never hit. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We saw the tsunami warning on TV. Great. Something to do tonight. You know, it's the story of California. We're always waiting to see if it's going to go up in flames or fall down into the sea. And we'll probably go watch it happen.

(END VIDEO CLIP)

COSTELLO: Another earthquake halfway around the world. This one jolted the Greek island of Crete. It measured 4.9 magnitude and was felt across the island, but no reports of injuries or damage here either.

On the island of Aruba, an area of beachfront known as a lover's lane was cordoned off and searched on Tuesday, but no clues into the disappearance of Alabama teenager Natalee Holloway were found.

John Zarrella is in Palm Springs, Aruba, this morning with more.

Good morning -- John.

JOHN ZARRELLA, CNN CORRESPONDENT: Good morning, Carol.

Well, for a period of time yesterday, there was certainly a flurry of activity here. That area of beach is about a mile-and-a- half or so from the Holiday Inn, where we are and where Natalee Holloway was last seen, the hotel she left that night. This is where she was staying. And that area is about 200 yards from the Marriott Hotel.

For about six hours yesterday, police, local authorities and FBI agents were on the scene there, combing through the mangroves, combing through the beach area. Police here say that it was basically following up the investigation, following up information that they had gotten from at least one of the three young men that they are holding in custody. It is just another of the areas that they are searching.

Now, they had not searched that particular area before yesterday. In fact, Miami Metro -- a Miami Dade County police dog, a working dog and his handler, were on scene as well.

And according to law enforcement sources, what we are being told is these three young men now that are in custody are beginning to point fingers at each other. So, the stories may well be changing. The interrogations of those three go on. But our understanding is that that search yesterday ended up fruitless, not turning up any evidence of Natalee Holloway or what might have happened to her -- Carol.

COSTELLO: John Zarrella live in Aruba this morning.

With Michael Jackson's trial over, we're hearing more about what happened behind the scenes.

CNN's Bill Hemmer joins us now for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

When all is said and done in that case, the jurors said there was not enough evidence to convict Michael Jackson. Prosecutors spent 14 weeks trying to prove their case. If they had to do it again would they put the accuser's mother on the stand? And would they do it in the same manner that they did? We'll talk to the D.A., Tom Sneddon, about that, and his top deputy, too, Ron Zoner (ph), our guests from Santa Barbara County this morning today.

Also, meet a 9/11 widow who tried to spend her way through grief. Kathy Trant (ph) was given $5 million in compensation when her husband was killed. Now, the mother of three has gone through almost all of it. She spent it on a new basketball court, a new hot tub, a new pool. She bought trips and gifts for all of her friends.

And she explains it to us because she feels it was blood money for the loss of her husband and wanted this cash, five grand of it or very close to that, Carol, out of her life. We'll talk about the shopping edition and also her grief, Kathy Trant (ph). She has an amazing story to tell and give us a small sample of what so many thousands of people may be experiencing after the event three-and-a- half, four years ago. She'll be with us this morning -- Carol.

COSTELLO: Interesting. All right, thank you, Bill.

HEMMER: OK. Bye-bye.

COSTELLO: Goodbye.

If you like to travel with your pet, you may want to pay attention to this. Starting today, airlines have to let the public know if pets are making it to their intended destination. To explain exactly what the heck that means, we're joined by CNN's Sumi Das. She's at Reagan National in Washington.

Good morning.

SUMI DAS, CNN CORRESPONDENT: Good morning, Carol.

Well, I don't know if you're a pet owner, but you know how devoted they can be. So, we've got some good news for them. Thanks to the efforts of the ASPCA, or the American Society for Prevention of Cruelty to Animals, travelers can soon find out which airline has the best record when it comes to transporting the estimated two million pets that are flown commercially every year.

(BEGIN VIDEOTAPE)

DAS (voice over): Meet furry frequent flier Eloise. Luckily, Eloise can sit underneath the seat in an airplane cabin. Her owner refuses to check her into the cargo hold.

UNIDENTIFIED FEMALE: I do not want to be the one standing there with the empty leash.

DAS: She's not alone.

UNIDENTIFIED FEMALE: I would never allow her in cargo. She's not cargo. She's my baby.

DAS: No one knows how many pets die traveling. Estimates from the ASPCA range, but start at 5,000 a year, enough to concern pet owners. A new law required airlines to report pet injuries, losses and deaths occurring on their flights to the U.S. Department of Transportation. If a mishap occurs, the airline must try to prevent the same mistake from happening again.

The ASPCA says it would like airlines to do more.

LISA WEISBERG, ASPCA: What it also hopefully will do is make airlines a little bit more responsible and accountable for the animals that are in their care.

DAS: Airlines fought unsuccessfully against the law. Now, some airlines fear the reports will be used competitively. Others wonder if airlines will follow Southwest's lead and choose not to carry pets. The ASPCA says the law presents a marketing opportunity.

WEISBERG: We're waiting for that airline to truly become pet- friendly and to either have the newer cargo holds that are temperature controlled or perhaps, even better, to make a place available on the airplane in the cabin itself.

(END VIDEOTAPE)

DAS: Airlines will begin reporting to the Department of Transportation today, but those numbers won't be available to the public until the first, perhaps even the second, week of July. That's when they'll be published in the department's monthly report.

Live at Reagan National Airport, I'm Sumi Das -- Carol.

COSTELLO: All right, thanks, Sumi.

Still to come on DAYBREAK, she made a career out of working her assets. Now, she's learning how career politicians work theirs.

And SUV drivers may not like it, but there is a plan in the works to tax them into going green.

But first, here's a look at what else is making news this Wednesday.

(COMMERCIAL BREAK)

COSTELLO: A look at the international markets. Tokyo's Nikkei, as you can see, is up almost 80 points. The London FTSE down about half-a-point. The German DAX up just over 4.5 points.

Your news, money, weather and sports. It is 6:43 Eastern. Here's what's all new this morning.

A tsunami warning has been lifted for the entire U.S. West Coast. It was issued last night after a strong earthquake about 90 miles off the northern California coast. No injuries or damages reported.

In money news, an investment company has purchased the Wyndham Hotel chain in a deal worth more than $3 billion. The Blackstone Group specializes in buyouts of troubled companies.

In culture, Canadian music retailer HMV Canada is taking Alanis Morissette's albums from the shelves. That's because she's got an exclusive agreement to sell her "Jagged Little Pill" album at Starbucks for six weeks.

In sports, despite being critical of the organization and a marquee player, Phil Jackson is returning to the Los Angeles Lakers. He led the team to three titles before walking away after last year's loss in the NBA finals. So, he rejoins with his not-so-favorite person, Kobe Bryant.

(WEATHER REPORT)

COSTELLO: Hey, Chad, the shuttle Discovery.

CHAD MYERS, CNN METEOROLOGIST: Hey, it's moving.

COSTELLO: It's moving. It's making its first step this morning toward a return to space, and what a beautiful picture.

MYERS: It's not moving real quickly. But they don't want it to.

COSTELLO: No. No, the launch isn't even scheduled to take place until, like, mid to late July.

MYERS: Right.

COSTELLO: The Discovery flight would, of course, be the first since the Columbia disaster more than two years ago. This mission is designed to test the new safety procedures.

MYERS: Well, let's just hope that there's not some tropical storm that comes brushing by, and they've got to run it back, back into the building again.

COSTELLO: Oh, I hope not either. It doesn't look like it right now.

MYERS: There's nothing out there right now.

COSTELLO: All right, we'll keep you updated on this. But we decided to show you that beautiful picture this morning.

MYERS: A great shot. A beautiful shot of the sunrise.

COSTELLO: Yes. Still to come on DAYBREAK, how much gas does your vehicle use? And how much tax did you pay for your car? Think the two should be connected? One group does. Hear about their plan for some drivers to think green.

But first, it's time to say happy birthday.

(COMMERCIAL BREAK)

COSTELLO: We just had to make sure you were awake this morning.

In Connecticut, some have their own idea to conserve energy. Lawmakers are considering a plan that would link the sales tax rates on vehicles to the amount of gas they guzzle. In other words, I'll translate it into English now, drive a gas-guzzler and you pay a higher sales tax. Good idea? Unfair?

Live to Charles Rothenberger with the Connecticut Fund for the Environment, which is pushing this.

Good morning, Charles.

CHARLES ROTHENBERGER, CONNECTICUT FUND FOR THE ENVIRONMENT: Good morning. How are you?

COSTELLO: I'm fine. What are you hoping to accomplish?

ROTHENBERGER: Well, this is a plan that really came out of a regional effort as part of the New England Governors and Eastern Canadian Premiers Climate Change Agreement. And the target for Connecticut under that agreement is to reduce our in-state emissions of greenhouse gases to 1990 levels by 2010, and 10 percent below 1990 levels by 2020. And...

COSTELLO: Go ahead.

ROTHENBERGER: ... (INAUDIBLE). It's particularly significant for a state like Connecticut, which is a coastal state. It has particularly poor air quality. And global warming and climate change, in addition to the more obvious aspects, lead to the conditions which create smog, which has particularly troubling effects for our vulnerable populations, such as people with asthma.

COSTELLO: Right. Well, we all understand there are problems. But this idea of raising the sales tax on people -- on SUVs, I mean, tell us more about that part of it.

ROTHENBERGER: Well, it's actually -- it's a whole range of consumer incentives. Under the legislation that was passed this past session, the Department of Environmental Protection has been directed to develop a plan to create a sliding scale of sales tax incentives from a 3-percent rebate for the least polluting vehicles to a 3- percent surcharge for the most polluting vehicles.

And we think that actually is a fair approach for a couple of reasons. Number one, under that sort of a sliding scale -- and obviously it depends upon the design parameters -- really vehicles within any sort of class would be eligible for a rebate or simply remain neutral under that scheme. But...

COSTELLO: Well, you know, it sounds like a good idea at face value, but there is some controversy about this. I want to read you a quote from the Alliance of Automobile Manufacturers. They say: "Is it fair to the contractor who needs the pickup or SUV to do their job? Is it fair to the weekend enthusiast who needs to haul their shell boat for the weekend?"

Can you respond to that?

ROTHENBERGER: Well, first of all, the Alliance of Automobile Manufacturers has little to no credibility on air pollution issues, but addressing those concerns, assuming they're sincere, which I'm skeptical of. And as I said, under this plan, it's really not a tax on pickup trucks or SUVs. It's simply encourages consumers to take a look at the emissions rates of those vehicles and to choose a vehicle within any particular class, which essentially pollutes less.

COSTELLO: When will this...

ROTHENBERGER: So, for instance...

COSTELLO: When will this hit the Connecticut legislature?

ROTHENBERGER: Well, under the legislation, the department needs to come up with a plan and deliver it for consideration by January of 2006.

COSTELLO: OK. Well, we'll keep following this. And, Charles Rothenberger, thank you for joining DAYBREAK. We sure appreciate it.

It is 6:52 Eastern. Here is what will be making news today.

A Florida medical examiner's office plans to release its autopsy report on Terri Schiavo. Her family hopes it will identify what caused her to collapse into a severely brain-damaged state 15 years ago.

The New York Yankees announcing plans for a new $800 million ballpark. It will be built right next to the existing stadium in the Bronx. The new stadium should be ready for play in the 2009 baseball season.

High gas prices got you down? President Bush says his policy will reduce energy prices, and he's talking about it today. During a speech to the Energy-Efficient Forum in Washington, the president is expected to repeat his call for an energy bill by August.

It's time now to give away a mug.

MYERS: If you want to stay warm today, put your hands around that brand-new CNN DAYBREAK coffee mug. But you don't need to stay warm, Carol.

COSTELLO: No, not really.

MYERS: Because it's still hot there, although cold air is on its way. I promise. I promise soon.

What company will discontinue VHS tapes sales next year? That was our question yesterday. The answer was Wal-Mart. Then, they said, wait, no, we're not going to do that. We're going to keep selling them, because we still have a little bit of demand here. They probably had a run on them yesterday. What's the name of the self- titled first sex offender-free neighborhood in the country? And that was Milwaukee Ridge, located in Lubbock, Texas.

And the winner, the winner from North Carolina, Southern Pines, North Carolina, Carol Collins. Congratulations, your DAYBREAK coffee mug is in the mail, or at least it will be.

Now for today's questions. What percentage of companies monitor their employees' Web usage? And when was the shuttle Discovery last rolled to the launch pad at the Kennedy Space Center? They're rolling it now. When was it last rolled out there?

Submit your answers to cnn.com/daybreak. There you will find a link. Click on the link and give us your answers.

And there it goes out that very long drive at very slow speeds.

COSTELLO: Moving very slowly.

MYERS: About as fast as your nails grow. No, it's a little bit better than that. But they take it very slowly. They don't want to hit any bumps in the road there.

COSTELLO: Well, they want to make sure every safety precaution is in place. And, of course, this thing won't launch until mid-July anyway.

MYERS: Right.

COSTELLO: But we'll keep following its very slow process for you. Never fear.

When we come back, more headlines and a look at your travel forecast. This is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: If you're traveling today, Chad has an update for you.

(WEATHER REPORT)

COSTELLO: "Now in the News."

Seventeen Iraqi soldiers were killed after an explosion at a restaurant north of Baghdad. At least 28 others were injured. It happened at an Iraqi military base. The blast was apparently caused by a suicide bomber. We'll bring you more details on this developing story as we get them through the morning.

Rumblings in northern California, a magnitude 7 earthquake struck about 90 miles off the coast last night that triggered a tsunami warning and some coastal evacuations. But the warning was later canceled. No reports of damage or injuries.

New developments out of Iraq. A civilian contractor abducted six weeks ago has been freed. A U.S. military official says Douglas Wood was freed as part of a military operation.

And NASA is in the process of rolling out the space shuttle Discovery this morning. The long, four-mile trip began after midnight. The launch is planned for sometime in mid to late July.

From the Time Warner center in New York, I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired June 15, 2005 - 06:31   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: From the Time Warner center in New York, this is DAYBREAK, with Carol Costello and Chad Myers.
CAROL COSTELLO, CNN ANCHOR: And good morning, everyone. Thank you for waking up with us.

Coming up this half-hour, airlines are getting more friendly with their four-legged fliers. And starting today, they're throwing a bone to pet owners.

Plus, your gas-guzzling SUV can prove to be very taxing, literally. We'll tell you why.

But first, "Now in the News."

Word coming in about an hour ago, Australian Douglas Wood, a civilian contractor abducted six weeks ago in Iraq, has been freed. Australia's prime minister announced Wood's release to parliament. A U.S. military official says Wood was freed as part of a military operation. Wood lives on the U.S. West Coast.

Police in Spain say they have arrested 16 suspected Islamic terrorists, including five believed to be linked to last year's Madrid train bombings. Authorities say 11 of the suspects are linked to the terrorist group headed by Abu Musab al-Zarqawi. He's al Qaeda's main operative in Iraq.

President Bush says his energy plan will give you more options and make U.S. more energy-independent and efficient. He's urging Congress to stop stalling and pass a national energy bill.

To the forecast center now.

(WEATHER REPORT)

COSTELLO: Some residents on the West Coast were holding their breath last night after a 7-magnitude quake hit 90 miles offshore. The quake was about 300 miles northwest of Sacramento, triggering a tsunami warning that was lifted about an hour later. The quake hit shortly before 11:00 p.m. Eastern Time.

This is video from the effects of the quake. Authorities say no damage or injuries are reported, despite all of the shaking.

One California resident watched the coast for those tsunami waves that never hit. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We saw the tsunami warning on TV. Great. Something to do tonight. You know, it's the story of California. We're always waiting to see if it's going to go up in flames or fall down into the sea. And we'll probably go watch it happen.

(END VIDEO CLIP)

COSTELLO: Another earthquake halfway around the world. This one jolted the Greek island of Crete. It measured 4.9 magnitude and was felt across the island, but no reports of injuries or damage here either.

On the island of Aruba, an area of beachfront known as a lover's lane was cordoned off and searched on Tuesday, but no clues into the disappearance of Alabama teenager Natalee Holloway were found.

John Zarrella is in Palm Springs, Aruba, this morning with more.

Good morning -- John.

JOHN ZARRELLA, CNN CORRESPONDENT: Good morning, Carol.

Well, for a period of time yesterday, there was certainly a flurry of activity here. That area of beach is about a mile-and-a- half or so from the Holiday Inn, where we are and where Natalee Holloway was last seen, the hotel she left that night. This is where she was staying. And that area is about 200 yards from the Marriott Hotel.

For about six hours yesterday, police, local authorities and FBI agents were on the scene there, combing through the mangroves, combing through the beach area. Police here say that it was basically following up the investigation, following up information that they had gotten from at least one of the three young men that they are holding in custody. It is just another of the areas that they are searching.

Now, they had not searched that particular area before yesterday. In fact, Miami Metro -- a Miami Dade County police dog, a working dog and his handler, were on scene as well.

And according to law enforcement sources, what we are being told is these three young men now that are in custody are beginning to point fingers at each other. So, the stories may well be changing. The interrogations of those three go on. But our understanding is that that search yesterday ended up fruitless, not turning up any evidence of Natalee Holloway or what might have happened to her -- Carol.

COSTELLO: John Zarrella live in Aruba this morning.

With Michael Jackson's trial over, we're hearing more about what happened behind the scenes.

CNN's Bill Hemmer joins us now for a look at what's coming up on "AMERICAN MORNING."

Good morning -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you.

When all is said and done in that case, the jurors said there was not enough evidence to convict Michael Jackson. Prosecutors spent 14 weeks trying to prove their case. If they had to do it again would they put the accuser's mother on the stand? And would they do it in the same manner that they did? We'll talk to the D.A., Tom Sneddon, about that, and his top deputy, too, Ron Zoner (ph), our guests from Santa Barbara County this morning today.

Also, meet a 9/11 widow who tried to spend her way through grief. Kathy Trant (ph) was given $5 million in compensation when her husband was killed. Now, the mother of three has gone through almost all of it. She spent it on a new basketball court, a new hot tub, a new pool. She bought trips and gifts for all of her friends.

And she explains it to us because she feels it was blood money for the loss of her husband and wanted this cash, five grand of it or very close to that, Carol, out of her life. We'll talk about the shopping edition and also her grief, Kathy Trant (ph). She has an amazing story to tell and give us a small sample of what so many thousands of people may be experiencing after the event three-and-a- half, four years ago. She'll be with us this morning -- Carol.

COSTELLO: Interesting. All right, thank you, Bill.

HEMMER: OK. Bye-bye.

COSTELLO: Goodbye.

If you like to travel with your pet, you may want to pay attention to this. Starting today, airlines have to let the public know if pets are making it to their intended destination. To explain exactly what the heck that means, we're joined by CNN's Sumi Das. She's at Reagan National in Washington.

Good morning.

SUMI DAS, CNN CORRESPONDENT: Good morning, Carol.

Well, I don't know if you're a pet owner, but you know how devoted they can be. So, we've got some good news for them. Thanks to the efforts of the ASPCA, or the American Society for Prevention of Cruelty to Animals, travelers can soon find out which airline has the best record when it comes to transporting the estimated two million pets that are flown commercially every year.

(BEGIN VIDEOTAPE)

DAS (voice over): Meet furry frequent flier Eloise. Luckily, Eloise can sit underneath the seat in an airplane cabin. Her owner refuses to check her into the cargo hold.

UNIDENTIFIED FEMALE: I do not want to be the one standing there with the empty leash.

DAS: She's not alone.

UNIDENTIFIED FEMALE: I would never allow her in cargo. She's not cargo. She's my baby.

DAS: No one knows how many pets die traveling. Estimates from the ASPCA range, but start at 5,000 a year, enough to concern pet owners. A new law required airlines to report pet injuries, losses and deaths occurring on their flights to the U.S. Department of Transportation. If a mishap occurs, the airline must try to prevent the same mistake from happening again.

The ASPCA says it would like airlines to do more.

LISA WEISBERG, ASPCA: What it also hopefully will do is make airlines a little bit more responsible and accountable for the animals that are in their care.

DAS: Airlines fought unsuccessfully against the law. Now, some airlines fear the reports will be used competitively. Others wonder if airlines will follow Southwest's lead and choose not to carry pets. The ASPCA says the law presents a marketing opportunity.

WEISBERG: We're waiting for that airline to truly become pet- friendly and to either have the newer cargo holds that are temperature controlled or perhaps, even better, to make a place available on the airplane in the cabin itself.

(END VIDEOTAPE)

DAS: Airlines will begin reporting to the Department of Transportation today, but those numbers won't be available to the public until the first, perhaps even the second, week of July. That's when they'll be published in the department's monthly report.

Live at Reagan National Airport, I'm Sumi Das -- Carol.

COSTELLO: All right, thanks, Sumi.

Still to come on DAYBREAK, she made a career out of working her assets. Now, she's learning how career politicians work theirs.

And SUV drivers may not like it, but there is a plan in the works to tax them into going green.

But first, here's a look at what else is making news this Wednesday.

(COMMERCIAL BREAK)

COSTELLO: A look at the international markets. Tokyo's Nikkei, as you can see, is up almost 80 points. The London FTSE down about half-a-point. The German DAX up just over 4.5 points.

Your news, money, weather and sports. It is 6:43 Eastern. Here's what's all new this morning.

A tsunami warning has been lifted for the entire U.S. West Coast. It was issued last night after a strong earthquake about 90 miles off the northern California coast. No injuries or damages reported.

In money news, an investment company has purchased the Wyndham Hotel chain in a deal worth more than $3 billion. The Blackstone Group specializes in buyouts of troubled companies.

In culture, Canadian music retailer HMV Canada is taking Alanis Morissette's albums from the shelves. That's because she's got an exclusive agreement to sell her "Jagged Little Pill" album at Starbucks for six weeks.

In sports, despite being critical of the organization and a marquee player, Phil Jackson is returning to the Los Angeles Lakers. He led the team to three titles before walking away after last year's loss in the NBA finals. So, he rejoins with his not-so-favorite person, Kobe Bryant.

(WEATHER REPORT)

COSTELLO: Hey, Chad, the shuttle Discovery.

CHAD MYERS, CNN METEOROLOGIST: Hey, it's moving.

COSTELLO: It's moving. It's making its first step this morning toward a return to space, and what a beautiful picture.

MYERS: It's not moving real quickly. But they don't want it to.

COSTELLO: No. No, the launch isn't even scheduled to take place until, like, mid to late July.

MYERS: Right.

COSTELLO: The Discovery flight would, of course, be the first since the Columbia disaster more than two years ago. This mission is designed to test the new safety procedures.

MYERS: Well, let's just hope that there's not some tropical storm that comes brushing by, and they've got to run it back, back into the building again.

COSTELLO: Oh, I hope not either. It doesn't look like it right now.

MYERS: There's nothing out there right now.

COSTELLO: All right, we'll keep you updated on this. But we decided to show you that beautiful picture this morning.

MYERS: A great shot. A beautiful shot of the sunrise.

COSTELLO: Yes. Still to come on DAYBREAK, how much gas does your vehicle use? And how much tax did you pay for your car? Think the two should be connected? One group does. Hear about their plan for some drivers to think green.

But first, it's time to say happy birthday.

(COMMERCIAL BREAK)

COSTELLO: We just had to make sure you were awake this morning.

In Connecticut, some have their own idea to conserve energy. Lawmakers are considering a plan that would link the sales tax rates on vehicles to the amount of gas they guzzle. In other words, I'll translate it into English now, drive a gas-guzzler and you pay a higher sales tax. Good idea? Unfair?

Live to Charles Rothenberger with the Connecticut Fund for the Environment, which is pushing this.

Good morning, Charles.

CHARLES ROTHENBERGER, CONNECTICUT FUND FOR THE ENVIRONMENT: Good morning. How are you?

COSTELLO: I'm fine. What are you hoping to accomplish?

ROTHENBERGER: Well, this is a plan that really came out of a regional effort as part of the New England Governors and Eastern Canadian Premiers Climate Change Agreement. And the target for Connecticut under that agreement is to reduce our in-state emissions of greenhouse gases to 1990 levels by 2010, and 10 percent below 1990 levels by 2020. And...

COSTELLO: Go ahead.

ROTHENBERGER: ... (INAUDIBLE). It's particularly significant for a state like Connecticut, which is a coastal state. It has particularly poor air quality. And global warming and climate change, in addition to the more obvious aspects, lead to the conditions which create smog, which has particularly troubling effects for our vulnerable populations, such as people with asthma.

COSTELLO: Right. Well, we all understand there are problems. But this idea of raising the sales tax on people -- on SUVs, I mean, tell us more about that part of it.

ROTHENBERGER: Well, it's actually -- it's a whole range of consumer incentives. Under the legislation that was passed this past session, the Department of Environmental Protection has been directed to develop a plan to create a sliding scale of sales tax incentives from a 3-percent rebate for the least polluting vehicles to a 3- percent surcharge for the most polluting vehicles.

And we think that actually is a fair approach for a couple of reasons. Number one, under that sort of a sliding scale -- and obviously it depends upon the design parameters -- really vehicles within any sort of class would be eligible for a rebate or simply remain neutral under that scheme. But...

COSTELLO: Well, you know, it sounds like a good idea at face value, but there is some controversy about this. I want to read you a quote from the Alliance of Automobile Manufacturers. They say: "Is it fair to the contractor who needs the pickup or SUV to do their job? Is it fair to the weekend enthusiast who needs to haul their shell boat for the weekend?"

Can you respond to that?

ROTHENBERGER: Well, first of all, the Alliance of Automobile Manufacturers has little to no credibility on air pollution issues, but addressing those concerns, assuming they're sincere, which I'm skeptical of. And as I said, under this plan, it's really not a tax on pickup trucks or SUVs. It's simply encourages consumers to take a look at the emissions rates of those vehicles and to choose a vehicle within any particular class, which essentially pollutes less.

COSTELLO: When will this...

ROTHENBERGER: So, for instance...

COSTELLO: When will this hit the Connecticut legislature?

ROTHENBERGER: Well, under the legislation, the department needs to come up with a plan and deliver it for consideration by January of 2006.

COSTELLO: OK. Well, we'll keep following this. And, Charles Rothenberger, thank you for joining DAYBREAK. We sure appreciate it.

It is 6:52 Eastern. Here is what will be making news today.

A Florida medical examiner's office plans to release its autopsy report on Terri Schiavo. Her family hopes it will identify what caused her to collapse into a severely brain-damaged state 15 years ago.

The New York Yankees announcing plans for a new $800 million ballpark. It will be built right next to the existing stadium in the Bronx. The new stadium should be ready for play in the 2009 baseball season.

High gas prices got you down? President Bush says his policy will reduce energy prices, and he's talking about it today. During a speech to the Energy-Efficient Forum in Washington, the president is expected to repeat his call for an energy bill by August.

It's time now to give away a mug.

MYERS: If you want to stay warm today, put your hands around that brand-new CNN DAYBREAK coffee mug. But you don't need to stay warm, Carol.

COSTELLO: No, not really.

MYERS: Because it's still hot there, although cold air is on its way. I promise. I promise soon.

What company will discontinue VHS tapes sales next year? That was our question yesterday. The answer was Wal-Mart. Then, they said, wait, no, we're not going to do that. We're going to keep selling them, because we still have a little bit of demand here. They probably had a run on them yesterday. What's the name of the self- titled first sex offender-free neighborhood in the country? And that was Milwaukee Ridge, located in Lubbock, Texas.

And the winner, the winner from North Carolina, Southern Pines, North Carolina, Carol Collins. Congratulations, your DAYBREAK coffee mug is in the mail, or at least it will be.

Now for today's questions. What percentage of companies monitor their employees' Web usage? And when was the shuttle Discovery last rolled to the launch pad at the Kennedy Space Center? They're rolling it now. When was it last rolled out there?

Submit your answers to cnn.com/daybreak. There you will find a link. Click on the link and give us your answers.

And there it goes out that very long drive at very slow speeds.

COSTELLO: Moving very slowly.

MYERS: About as fast as your nails grow. No, it's a little bit better than that. But they take it very slowly. They don't want to hit any bumps in the road there.

COSTELLO: Well, they want to make sure every safety precaution is in place. And, of course, this thing won't launch until mid-July anyway.

MYERS: Right.

COSTELLO: But we'll keep following its very slow process for you. Never fear.

When we come back, more headlines and a look at your travel forecast. This is DAYBREAK for a Tuesday morning.

(COMMERCIAL BREAK)

COSTELLO: If you're traveling today, Chad has an update for you.

(WEATHER REPORT)

COSTELLO: "Now in the News."

Seventeen Iraqi soldiers were killed after an explosion at a restaurant north of Baghdad. At least 28 others were injured. It happened at an Iraqi military base. The blast was apparently caused by a suicide bomber. We'll bring you more details on this developing story as we get them through the morning.

Rumblings in northern California, a magnitude 7 earthquake struck about 90 miles off the coast last night that triggered a tsunami warning and some coastal evacuations. But the warning was later canceled. No reports of damage or injuries.

New developments out of Iraq. A civilian contractor abducted six weeks ago has been freed. A U.S. military official says Douglas Wood was freed as part of a military operation.

And NASA is in the process of rolling out the space shuttle Discovery this morning. The long, four-mile trip began after midnight. The launch is planned for sometime in mid to late July.

From the Time Warner center in New York, I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.

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