US Senate may table latest climate change bill next week

Point Carbon and Reuters both report that the U.S. Senate may table a new climate change bill on April 26. The bill, which will be sponsored by Democratic Senator John Kerry, Republican Senator Lindsey Graham and independent Senator Joseph Lieberman, is expected to be a compromise piece of legislation that is less comprehensive than the Waxman-Markey bill that passed in the House of Representatives last year.

There are rumours that the KGL Bill (named after its sponsors) may also supersede state and regional greenhouse gas emissions regulations. If so, the Regional Greenhouse Gas Initiative, which has generated enough cash to entice state lawmakers to raid its coffers to shore up budget deficits, may be killed and the Western Climate Initiative may never be born.

The KGL Bill might also put an end to efforts by the U.S. Environmental Protection Agency ("EPA") to regulate emissions on the strength of its endangerment finding. The EPA's efforts have attracted broad criticism, perhaps helping to bring some focus to climate change negotiations in Congress (which some suspect is the Obama administration's intention).

Still fresh off his health care win, President Obama is likely hoping to fast-track federal climate change legislation, which is another one of his major policy goals. Reports are that the Senate could vote on the bill as early as June.

Canadian businesses with large emissions profiles will no doubt comb through the draft KGL Bill. Not only could it contain carbon tariffs that could be relevant to exporters, the bill will set the stage for similar legislation in Canada. Recall that the federal Conservatives have repeatedly promised to follow the U.S.'s lead by creating complementary legislation in Canada.

Stay tuned for details.

Tagged as: US - climate change