The Senate climate bill being worked up by senators John Kerry (D-MA), Lindsey Graham (R-SC), and Joe Lieberman (I-CT) will be officially rolled out on Monday, April 26. Notice that is not fraught-with-symbolism Earth Day, April 22. Instead, to quote Senator Graham, whose priorities are quite clear, "It's Offshore Oil Day!" Yippee!
Senator Harry Reid has pushed hard for the KGL senators to unveil their bill so that it can get to the floor by July 4.
Contents of the bill, as far as I can gather, below the fold.
- Obama Administration:
Through various high-level officials, the administration has reiterated how an energy and climate bill is a top priority, says Larry Summers (why is he speaking on climate, of all people?).
- Price on Carbon:
The Obama administration's favorite phrase of late seems to be the need to put a price on carbon. The price? About $31 per ton or about 27 cents per gallon of gas, estimates one consulting group. Meanwhile, a group of 10 rustbelt Democrats led by Sherrod Brown (D-OH) wants a firm price collar (collar = floor and ceiling) on carbon.
Utilities would pay the price on carbon. About 60% of that price on carbon may be rebated to consumers through what looks to me like a variation on the Cantwell-Collins CLEAR cap-and-dividend bill.
A separate fee on the transportation sector may be assessed. This one is a little tricky, because no politician favors a gas tax on the record. Instead, the Senators have devised a linked fee, which is too complex for this blogger to understand without a bill on paper.
Utilities will start paying the price on carbon in 2012. Manufacturers may be delayed as long as 2016. And a big exception may be carved out if Brown's Group of 10 has its way for energy-intensive, trade-exposed industries:
unique industries and processes that have been brought to Congress' attention, including: the use of certain process emissions, cogeneration, combined heat and power, feedstock uses of energy, foundries, industrial gases, integrated facilities, lime, non-integrated coke production, purchased steam, processing of certain types of ore, refractory products, research and development facilities, silicon carbide, soda ash, specialty ceramics, sugar, and zinc recycling.
Sugar is energy intensive and needs protection? Sweet pork!
- Fossil fuel support:
Some unknown amount of money will be spent to buy Rockefeller and Byrd's support on clean coal programs.
Offshore oil drilling is creating tension. While senators Lamar Alexander (R-TN) and Scott Brown (R-MA) declare themselves newly open to a climate bill, formerly reliable yes vote Robert Menendez (D-NJ) warns that he is now unlikely to support the bill unless the Administration backs off offshore oil drilling.
Meanwhile, another fight is brewing regarding splitting drilling revenues. One proposal has coastal states revenue-sharing with the federal government, creating a big boost to state coffers (and buying off broke states that might otherwise oppose drilling off their shores). However, interior states don't like that (surprise!).
- Gutting the EPA and Progressive States:
An unnamed Senate source told Reuters that the bill will both prohibit the Environmental Protection Agency from regulating carbon dioxide emissions and will end state and regional carbon-trading programs (10 Northeastern states participate in one trading program, while California and other states' Western Climate Initiative is to begin in 2012), to be replaced by a national carbon reduction policy.
While anonymous sources are not necessarily trustworthy, this statement accords with Brown's Group of 10 demand to "clarify" standards:
Where inconsistencies exist, federal laws should prevail. Federal uniformity is necessary to prevent inconsistencies in regulation, preserve overall efficiency, and ensure harmonization of policies. New federal programs governing regulation of greenhouse gas emissions should avoid overlapping regulations and should supersede existing federal law.
- Renewable Energy Standards and Senate Procedure:
The KGL bill will not go through committees; no need to worry about Baucus, Lincoln, or Rockefeller mucking up matters in committee. Instead, Harry Reid will take control. The committees will have some say, but apparently Reid will prepare a "manager's amendment" of the weak ACELA bill, S. 1462, that passed out of the Energy & Natural Resources committee last summer.
- Some Senators to Watch (and call):
Evan Bayh, Robert Byrd, Claire McCaskill, and Mark Warner (D-IN, D-WV, D-MO, and D-VA respectively) signed Brown's Group of 10 letter, indicating that they may be on board. All had been considered fence sitters.
Mark Begich (D-AK)has gotten most of what he wants on oil drilling, but wants to see money for oil spill research and adaptation. Hint: no drill, no spill!
Byron Dorgan (D-ND) will now consider voting for a bill pricing carbon despite his prior reluctance to vote for cap and trade.
Judd Gregg (R-NH), perhaps the biggest GOP target, is worried about taxes and oil security.
Mark Pryor (D-AR) is undecided, as is Lisa Murkowski, who wants to see the "whole elephant."
Only George Voinovich (R-OH) seems doubtful that the bill will ever get to the Senate floor.
- Why? Because.