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 MarkeyEd MarkeyOvernight Regulation: Trump pick would swing labor board to GOP | House panel advances bill to slow ozone regs | Funding bill puts restrictions on financial regulators Overnight Tech: Trump targets Amazon | DHS opts for tougher screening instead of laptop ban | Dem wants FBI to probe net neutrality comments | Google fine shocks tech Senators introduce bill to ban calls on flights 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 KerrySenate GOP healthcare plan is the next man-made disaster Changing America: America’s growing education divide Speaker Ryan, the fate of our policy toward Russia rests in your hands MORE (D-Mass.), Lindsey GrahamLindsey GrahamGOP senators want surveillance requests from FBI Russia probe Overnight Cybersecurity: New ransomware attack spreads globally | US pharma giant hit | House intel panel interviews Podesta | US, Kenya deepen cyber partnership Graham gets frustrated in public ‘unmasking’ debate 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.”