Sen. Kerry Outlines Climate Change Proposal for Utilities

Sen. John Kerry, D-Mass., gave an outline of the climate change bill being shaped by himself and Sens. Joe Lieberman, ID-Conn., and Lindsey Graham, R-S.C., to utility officials, the Hill reported. An official called the briefing a "20,000-foot" overview of the bill, which Kerry was increasingly promoting as "a national security, energy independence bill" that will also help the economy and improve air quality.

By declaring that "it is not a climate bill," Kerry signaled the effort to position the proposal on grounds other than the attempt to cut GHG emissions. An oil refinery lobbyist said the three senators were telling other senators the bill would pre-empt state regulation of GHG emissions. However, the lobbyist said the lack of a definite proposal for the bill meant energy companies were not yet taking a stance on it.

Wrote The Hill: "Utilities would be required to hold allowances to cover their emissions and could trade the allowances on an open market as needed. But oil refiners would face a fee based on the carbon content of their fuels instead of a cap -- a proposal oil companies had brought to Capitol Hill earlier this year. Sen. Mary Landrieu (D-La.), a critic of the economy-wide cap-and-trade, told The Hill's E2 Wire blog last week that she was 'generally happy' Kerry, Graham and Lieberman appeared to be moving away from that approach."