Senators John Kerry (D-Mass), Lindsey Graham (R-S.C.) and Joseph Lieberman (I-Conn.) are trying to determine what package of promises will gain enough support from energy and corporate interests to allow for restrictions on greenhouse gas emissions and comprehensive mandates for renewable energy supplies.

However, the ultimate question is whether that package, which is likely to include increased drilling for oil and gas and support for nuclear power, will tip the scales in favor of an improved natural environment or an improved big-business environment--or perhaps both.

Rather than impose an economy-wide cap-and-trade system for carbon emissions, the Senators are focusing on a sector-by-sector approach, and a Reuters article on Friday said US power companies are likely to receive free pollution permits initially under whatever system is put in place.

In addition, the coal industry may receive $1 billion a year over 10 years for carbon capture and sequestration initiatives.

Other details include:

A carbon tax on oil at the refinery level. This differs from rumors last week suggesting a gasoline tax at the pump Changing a renewable energy standard (RES) to a clean energy standard that would promote nuclear alongside wind, solar and geothermal power Incentives to transition trucking from diesel to natural gas Serious Concerns

The more these details add up, the more it looks like a big giveaway for corporate interests supported by Republicans. Senate Democrats and state regulators are especially concerned that the bill might strip the EPA of its authority to regulate greenhouse gases under the Clean Air Act, according to a New York Times story.

It's likely to be a key issue as conservative states and businesses continue to align against EPA action, and environmentalists push to maintain the last-resort authority for controlling emissions.

Read the NY Times story at the link below.

Website: www.nytimes.com/cwire/2010/03/19/19climatewire-senate-democrats-states-wary-of-draft-climat-57897.html

Reprinted with permission from SustainableBusiness.com