The Senate climate bill sets a more aggressive schedule for carbon dioxide emissions cuts than legislation passed by the House, but leaves out details about how to distribute valuable pollution allowances.
The initial draft is expected to be released publicly by the Environment and Public Works Committee on Wednesday, but a nearly completed draft was in wide circulation on K Street and elsewhere in Washington by Tuesday morning.
The other targets, including the 83 percent reduction by 2050, are the same in both Senate and House versions.
As expected, the draft, which is being sponsored by Sens. Barbara BoxerBarbara BoxerAnother day, another dollar for retirement advice rip-offs Carly Fiorina 'certainly looking at' Virginia Senate run Top Obama adviser signs with Hollywood talent agency: report MORE (D-Calif.) and John KerryJohn KerryEgypt’s death squads and America's deafening silence With help from US, transformative change in Iran is within reach Ellison comments on Obama criticized as 'a stupid thing to say' MORE (D-Mass.), did not allocate allowances that companies need to acquire to cover their emissions. Those details will be left to a markup later in October. The Senate Finance Committee will also address that issue, sometime after it’s done with healthcare reform.
The allowances are expected to be worth tens of billions of dollars a year, and there is a fierce lobbying struggle over how they will be distributed over various industrial sectors.
The cap-and-trade bill sets up a market in which companies can buy and sell allowances as their needs require to meet emissions reduction targets. During the first years of the program, the government will distribute a majority of the necessary emissions for free.