Senators Look at Cap-and-Trade Alternatives

Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joseph Lieberman (I-Conn.) have been working on a cap-and-trade alternative that would attempt to reduce greenhouse gas output by imposing targeted carbon controls on electric utilities, transportation and industry.

The legislation has been in the works for some time and is expected to be introduced this month, according to the Washington Post.

Cap-and-trade opponents have complained that a cap-and-trade plan will harm companies and consumers while creating a complex carbon credits market that could be vulnerable to manipulation.

The three senators’ alternate plan would put a cap on emissions from power plants that would gradually become stricter; industrial facilities would be exempt from compliance with emissions caps for several years. Meanwhile, revenues from a tax on motor fuel would help transition the transportation sector into a cleaner model.

Additionally, the legislation would offer federal assistance for new nuclear facilities and for carbon sequestration projects at coal plants. It would also expand offshore oil and gas exploration.

The notion of putting a price on carbon remains unpopular with some Republicans and with the oil and refining industries, but many regard that move as central to promoting meaningful reductions in emissions.

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