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 MarkeyFCC chief pushes phone companies to offer free robocall blocking Markey floats bill bringing internet to developing world Overnight Tech: First on The Hill – Key senators team up against robocalls | Social media giants back revenge porn bill | Facebook's diversity numbers 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 KerryPower restored at Turkish air base used in anti-ISIS fight Don't expect much of a post-convention bounce for Trump or Clinton Kerry: Power at Turkish air base to be restored shortly MORE (D-Mass.), Lindsey GrahamLindsey GrahamVulnerable GOP senators praise Kaine Meghan McCain: ‘I no longer recognize my party’ Ex-UN ambassador John Bolton: Trump should take back NATO remarks 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.”