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 MarkeyDems lambaste Trump’s ‘outrageous’ EPA chemical safety pick Dems plan to make gun control an issue in Nevada Dem senator pitches ideas for gun control after shooting 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 KerryFor the sake of national security, Trump must honor the Iran deal Bernie Sanders’s 1960s worldview makes bad foreign policy DiCaprio: History will ‘vilify’ Trump for not fighting climate change MORE (D-Mass.), Lindsey GrahamLindsey Olin GrahamDurbin: I had 'nothing to do' with Curbelo snub Republicans jockey for position on immigration Overnight Health Care: House passes 20-week abortion ban | GOP gives ground over ObamaCare fix | Price exit sets off speculation over replacement 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.”