Cantwell-Collins Legislation Drawing Concerns From Industry Groups

In the Wall Street Journal Washington Wire blog, Stephen Power wrote about a proposal by Sens. Maria Cantwell, D-Wash., and Susan Collins, R-Maine, to distribute 75 percent of revenue from a cap-and-trade program directly to consumers. The bill also would limit participation in permit auctions to first sellers of energy, such as coal companies and petroleum producers. The Union of Concerned Scientists issued a statement saying the bill would not deliver emissions reductions fast enough to avert a climate crisis, and lacks provisions that would help secure an international climate agreement, such as financial assistance to fight deforestation, the blog reported.

Cantwell said her bill represented the "fresh approach" needed to pass a climate bill through Congress. She said that with moderate Democrats "pretty clear that they're not supporting the kind of framework" set out by Democratic leadership, her proposal could gain bipartisan and moderate support.

In responding to the bill, International Emissions Trading Association President Henry Derwent said: "The utilities and other major emitters do not want to take the sort of risks involved in predicting the prices of commodities like carbon. Nor do their customers and rate-payers. They want specialists to cover their risks, and that's what banks and financial intermediaries do."
Wall Street Journal blog, Dec. 11.