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 MarkeyOPEC and Russia may raise oil output under pressure from Trump Tech companies scramble as sweeping data rules take effect Fixing a colossal mistake in the tax bill 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 KerryJohn Kerry to NYU Abu Dhabi: We can't address world problems by 'going it alone' Juan Williams: Trump's dangerous lies on Iran Pompeo: US tried, failed to achieve side deal with European allies MORE (D-Mass.), Lindsey GrahamLindsey Olin GrahamGraham: Trump 'probably' shouldn't call use of FBI informant 'spygate' Graham on canceled summit: Trump thought North Korea was ‘playing him’ House GOP sets three FBI interviews in Clinton probe 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.”