CCES News For You

June 27, 2010

The potential federal climate bill remains in limbo, as Congress has been distracted by other priorities, such as financial reform and the Gulf of Mexico oil leak. Majority Leader Harry Reid (D-NV) plans to bring a bill to the floor in July, but there are huge philosophical differences even within the Democratic Party on its critical elements.
There is no strong consensus on pricing and trading carbon. It is possible that any type of trading provisions will be eliminated or downplayed and the emphasis of the bill will be energy independence, conservation, and renewable sources.

Here are some of the latest proposed Senate bills.

• The latest proposed bill was suggested by Sen. Jeff Bingaman (D-NM) whose bill creates a national renewable energy standard but does not place a mandatory cap on GHG emissions.

• Sen. Maria Cantwell (D-WA) favors a “cap and dividend” approach, with revenue gained from carbon credit sales going directly back to taxpayers.

• Several months ago Sens. John Kerry (D-MA) and Joe Lieberman (I-CT) submitted draft legislation that would contain moving caps on GHG emissions and put a price on carbon.

• Finally an energy bill introduced by Sen. Richard Lugar (R-IN) has elements that may attract some Republican votes. Lugar’s legislation calls for retiring the costliest coal plants, expanding nuclear and renewable power, and increasing energy efficiency of buildings and vehicles, but has no GHG emission goals or caps.

The question is which approach – or combination of approaches – can result in 60 votes in the Senate, and, of course, also engender support from the House of Representatives and the White House.