Post Carbon: Climate bill has new drilling protections - Juliet Eilperin
Overall, the plan returns more money to consumers--two-thirds of the revenue generated from auctioning carbon allowances in the utilities sector--and has more limited trading options than the House-passed climate bill.
In the utilities sector, for example, trading can only be conducted by entities that are covered under the federal carbon cap. That will curb the creation of a secondary carbon market, something that senators such as Byron Dorgan (D-N.D.), Maria Cantwell (D-Wash.) and Susan Collins (R-Maine) have argued against.
The transportation sector will not have any allowance trading, sources said. Instead, companies will have to buy quarterly carbon allowances that would be based on the average price in the previous quarter; the fee would be tacked on at a stage known in the industry as "the rack," which is after the fuel has left the refinery but before it reaches gas stations.