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 MarkeyThe Hill’s Whip List: Where Dems stand on Trump’s Supreme Court nominee Overnight Regulation: Senate moves to strike Obama-era internet privacy rules Overnight Tech: Senate votes to eliminate Obama internet privacy rules | FCC chief wants to stay out of 'political debate' on fake news | Wikileaks reveals new CIA docs 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 KerryCongress, Trump need a united front to face down Iran One year ago today we declared ISIS atrocities as genocide Trump’s realism toward Iran is stabilizing force for Middle East MORE (D-Mass.), Lindsey GrahamLindsey GrahamA real national security budget would fully fund State Department Gorsuch rewrites playbook for confirmation hearings Dem senator: House Intel chairman may have revealed classified info 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.”