Green groups applaud bipartisan progress on Senate energy bill

Environmental and climate lobbyists have applauded progress made last week on the Senate Climate and Energy Bill.

Massachusetts Senator John Kerry has been working with Senators Lindsey Graham and Joe Lieberman on a bipartisan proposal for a “comprehensive” climate and energy bill to bring to the Senate floor later this year.

A statement from 20 climate and environmental lobby groups said on Friday that they were “encouraged” by the progress being made.

Proposals for a 17% reduction in carbon dioxide emissions by 2020 and an 80% reduction by 2050 are on the table, which are supported by the green groups.

The groups, including the Environmental Defense Fund, the Natural Resources Defense Council and the National Wildlife Federation, said in their statement: “Legislative details are important, and are not settled yet, and we will be working closely with the senators, their staffs and others to make sure these details achieve the goals.”

Industry-specific

Proposals leaked from the Senators’ behind-closed-doors meeting with industry on Thursday, suggesting they will push for sector-specific emissions caps.

Power plant emissions would be regulated from 2012, with major industrial sources phased in from 2016 to give US manufacturing time to recover from the recession. Only plants emitting 25,000 tons of greenhouse emissions a year would be included.

The proposed cap and trade scheme could see a”hard collar” imposed on carbon prices, a maximum level of $30 per ton set. The system would see a government reserve set up to monitor the market, flooding it with reserve carbon credits if prices veered over the $30 per ton level.

There could be a carbon tax on transport fuel, depending on the fossil fuel content of the fuel, as well as a “carbon tariff” on imported goods from countries that do not regulate their greenhouse emissions.