SENATE ENERGY/CLIMATE BILL CUTS COSTS

Climate Bill Would Ease Energy Costs, Senator Says
Juliet Eilperin, October 2, 2009 (Washington Post)

"Senate Democrats will initially devote 70 percent of the pollution allowances in their new climate measure to making it easier for people to pay their energy bills, Senate Environment and Public Works Chairman Barbara Boxer said…

"Boxer (D-Calif.) introduced legislation this week with Senate Foreign Relations Chairman John F. Kerry (D-Mass.) aimed at limiting U.S. greenhouse gas emissions nationwide. It would force any facility emitting at least 25,000 tons of carbon dioxide a year to obtain pollution permits. The bill does not indicate how these pollution allowances would be allocated, but Boxer said…Democrats are prepared to give away allowances to make carbon-intensive commodities such as electricity more affordable."

While the Treasury Department study on cap&trade has been discredited as inapplicable, studies by the EIA...(click to enlarge)
...and the CBO...(click to enlarge)
...and the EPA show the cost burden of cap&trade will be modest. (click to enlarge)

[Senator Barbara Boxer (D-CA):] "The vast majority of allowances will go to consumers to keep them whole…"

"An aide to the senator said the panel was still working on the precise language of the bill, so it was too early to say whether all of those allowances would be given away free. It probably will be modeled on the House-passed bill, which aids consumers by providing free allowances to local electricity distribution companies as well as low income consumer rebates and tax credits and other measures."

click to enlarge

"Boxer also acknowledged that the climate bill does not have enough votes to pass right now in the Senate, adding that she will work to change that…To win votes, Kerry and Boxer have said they are willing to make compromises, and Boxer reiterated that in her interview, suggesting that the current target of reducing U.S. greenhouse gases 20 percent by 2020 compared with 2005 levels could change."

[Senator Barbara Boxer (D-CA):] "We're gaining ground, but at this point I can't count to 60…But you just do your job and move forward…I can't predict the end game…This is the environment committee, not the pollution committee. . . . This should be the high-water mark."