In these difficult economic times, cap and trade couldn’t survive. Wall Street, massive industry opposition, and political polarization were among the leading factors that killed the bill by Waxman and Markey. Now what?
Senators Cantwell and Collins have proposed a 39-page plan called “cap and dividend.” It’s very similar to what Obama discussed during his campaign and would auction 100 percent of pollution permits to producers and fossil fuel wholesalers and return three-quarters of revenue to consumers for high energy costs. Not bad.
Additionally, Senators Kerry and Graham are working on a new bill. According to The New York Times, it would:
include a cap on greenhouse gas emissions only for utilities, at least at first, with other industries phased in perhaps years later. It is also said to include a modest tax on gasoline, diesel fuel and aviation fuel, accompanied by new incentives for oil and gas drilling, nuclear power plant construction, carbon capture and storage, and renewable energy sources like wind and solar.
I’ll be following the energy policy discussion as it continues with great interest. What do you want to see in the bill?