Trio of Senators Delay Release of Climate Bill

On April 24, Sen. Lindsey Graham (R-SC), one of the three senators behind a “tri-partisan” group working on comprehensive climate and energy legislation, announced he was temporarily withdrawing his support for the bill. Graham, along with Sens. John Kerry (D-MA) and Joe Lieberman (I-CT) were developing legislation aimed at reducing greenhouse gas (GHG) emissions 17 percent below 2005 levels by 2020 and 80 percent below by 2050. The senators had originally intended to release a draft on April 26, but that has been postponed following Graham's announcement. Citing Senate Majority Leader Harry Reid's decision to move immigration legislation ahead of a climate bill, Graham said in a letter to negotiators, “This has destroyed my confidence that there will be a serious commitment and focus to move energy legislation this year." Kerry responded with an assurance that the legislation will move forward. "We're going to get this done," he said, adding that administration officials "want this done, and they want it done next. But they also want to see we've got something real."

The bill being developed would require utilities to purchase carbon emission allowances, two-thirds of which will be auctioned off and the revenues returned to ratepayers through local distribution companies. It would take effect in 2013, though trade-sensitive and energy-intensive industries would be given a four-year delay before their GHG emission limits are put in place. Oil companies would also be subject to pollution allowances that will be retired over time, and all revenues from the purchases of allowances for diesel fuel would be set aside and directed to the Highway Trust Fund. The bill would provide funding for carbon capture and storage for “clean-coal technology,” and establishes loan guarantees for new nuclear construction. Another key measure proposed is the pre-emption of the states’ and EPA’s authority to regulate GHG emissions under the Clean Air Act, as long as emitters comply with standards outlined in the bill.

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