WASHINGTOIN (AP) -- The Energy Department reports that carbon dioxide emissions increased by 1.6 percent last year with most coming from residential and commercial energy use. Emissions from transportation and industrial sources were essentially flat, compared to 2006.

The increases came from a greater demand for heating and cooling because of weather. Carbon dioxide, the leading greenhouse gas linked to global warming, declined in 2006, also because of weather-related circumstances.

Meanwhile, Senate Democrats are proposing $800 billion in tax reductions over more than three decades to help pay energy costs under a revised global warming bill. The proposal is aimed at blunting Republican criticism that the climate legislation is too costly and will harm average Americans. The legislation, scheduled for debate on the Senate floor next month, would cut greenhouse gas pollution by 71 percent by 2050.