Senate climate bill calls for a 20% cut in CO2

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.
 

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The bill calls for greenhouse gas emissions to be cut by 20 percent by 2020 from 2005 levels, compared with the 17 percent reduction called for in a version sponsored in the House by Reps. Henry Waxman (D-Calif.) and Edward MarkeyEd MarkeySanders calls for renewed focus on fighting climate change Overnight Energy: Trump set to sign offshore drilling order Sanders: Trump couldn't be 'more wrong' on climate MORE (D-Mass.). President Barack ObamaBarack ObamaClimate March draws huge crowd to DC Trump floods the zone for 100-day anniversary Trump team did background check on Flynn, knew of Turkey ties: report MORE had called for a 14 percent cut by 2020.
 
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.