Point Carbon estimates carbon costs of yet-to-be-released Senate climate bill

For context, the projected carbon price from the Senate climate legislation equates to an additional 27 cents a gallon for gasoline.

The House climate bill, sponsored by Reps. Henry Waxman (D-Calif.) and Edward MarkeyEdward (Ed) John MarkeyToyota halts self-driving car tests on public roads Senate Commerce presses Facebook, Cambridge Analytica for answers on data Cambridge Analytica: Five things to watch MORE (D-Mass.), would impose an economy-wide cap and trade program to cut greenhouse gas emissions.

The KGL bill, so-called for its Senate authors John KerryJohn Forbes KerryKentucky candidate takes heat for tweeting he'd like to use congressman for target practice Breitbart editor: Biden's son inked deal with Chinese government days after vice president’s trip State lawmakers pushing for carbon taxes aimed at the poor MORE (D-Mass.), Lindsey GrahamLindsey Olin GrahamSteyer brings his push to impeach Trump to town halls across the nation Trump formally sends Pompeo nomination to Senate GOP leaders to Trump: Leave Mueller alone MORE (R-S.C.) and Joseph Lieberman (I-Conn.), would create a cap-and-trade system for electric utilities and later for large manufacturers.

The transportation sector, however, would pay a “linked fee” tied to the carbon market price.

“If the market were to include only the power sector under the cap, Point Carbon finds prices would fall to $15 per ton of CO2 [equivalent] on average, as the cost of reductions is lowest in the power sector. The team also finds that the power sector alone could reduce emissions enough for the US to meet its 2020 pledge at a cost of $18 on average over 2013-2020.”