Outline of New Energy Bill Circulated; Kuhn to Attend Unveiling Today

E&E News PM has obtained a copy of the outline of the climate bill that Sens. John F. Kerry, D-Mass., and Joseph I. Lieberman, I-Conn., plan to release today. The summary notes that the bill would provide $54 billion in nuclear loan guarantees and other incentives for nuclear plant construction, as well as $2 billion in annual funding for carbon capture and sequestration. The summary said the bill offered to remove "disincentives for natural gas generation at merchant plants," promote the development of small, modular reactors, enhanced proliferation controls and provide GHG emissions allowances to "energy-intensive and trade-exposed" industries starting in 2016.

The legislation would impose GHG emissions limits on plants starting in 2013, Reuters reported. It sought to cut 2005 emissions levels 17 percent by 2020 and set the initial price of permits between $12 a ton and $25 a ton. The bill may propose a new formula for distributing permits to utilities, with historic emissions levels accounting for 75 percent of the formula, and sales accounting for the remaining 25 percent.

Sen. Tom Carper, D-Del., was quoted as saying of the 50-50 formula supported by EEI: "We asked the industry. We said, 'OK, this is above our pay grade. Why don't you guys figure it out?' They did. God bless them. And we should just declare victory and take what they negotiated." EEI President Tom Kuhn was among those expected to take part in the announcement of the climate change bill today, the Associated Press reported.

Kerry, who said the bill will be called the American Power Act, was quoted as saying: "People from across the ideological spectrum are standing by us, ready to line up in support of this plan. Any time you see me and T. Boone Pickens urging the Senate to pass something, you know it's a genuine effort to bridge the old divides." He was quoted as saying: "For climate, it's the bottom of the ninth inning and the bases are loaded if we can just push these runs across the plate."

- Related story also appeared in the Los Angeles Times.