FEATURED:

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 MarkeyElection Countdown: O'Rourke goes on the attack | Takeaways from fiery second Texas Senate debate | Heitkamp apologizes for ad misidentifying abuse victims | Trump Jr. to rally for Manchin challenger | Rick Scott leaves trail to deal with hurricane damage Senate Dems ask Trump to disclose financial ties to Saudi Arabia Dems damp down hopes for climate change agenda 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 KerryNikki Haley powerfully rebuts Trump Khashoggi prompts Trump to reconsider human rights in foreign policy Biden: ‘Totally legitimate’ to question age if he runs in 2020 MORE (D-Mass.), Lindsey GrahamLindsey Olin GrahamCongress raises pressure on Saudi Arabia Saudi Arabia's myopia is the cause of the Khashoggi blunder Graham on Saudi Arabia: 'I feel completely betrayed' 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.”