Senators Kerry, Graham, and Lieberman reportedly are set to announce a new climate bill at 11 am EST on Monday. The senators claim to have the support of the Edison Electric Institute and three major oil companies. How the American Petroleum Institute and the US Chamber of Commerce will react remains to be seen. The bill will likely provide for a cap and trade system that begins for utilities in 2013 and for manufacturing four years later. Nuclear, offshore drilling, and carbon capture and storage are expected to receive government incentives. Preemption of differing state programs and EPA regulations is likely to be part of the bill. Some form of revenue from diesel and gasoline from charges to refineries would leave the sale of fuel outside of the cap and trade system. Rebates to consumers of sales of greenhouse gas emission allowances are expected as well to attempt to reduce the economic impact to consumers.
It is not clear the bill has been completely drafted. Changes were reportedly being made o Passage of the climate and energy bill faces an uphill battle. The details of the bill will be interesting to see as the three senators have made many changes in an attempt to win industry support from utilities, refining companies, and manufacturers.