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 Ed MarkeyEd MarkeySenate Dem: Trump has to stop ‘reckless’ language on North Korea Trump sparks debate over war resolution for North Korea Foreign Relations Dem: North Korea is the modern-day Cuban missile crisis 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 needs to assert the war power against a dangerous president Sinclair and 'Big Media': The outrage that caused the outrage Tillerson sets a lost State Department on the right course MORE (D-Mass.), Lindsey GrahamLindsey GrahamGraham: Trump's Charlottesville rhetoric 'dividing Americans, not healing them' OPINION: Congress should censure Trump for his unfit conduct Supporting 'Dreamers' is our civic and moral duty 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.”