Energy and Climate Legislation

Senate

9/28/09

Bingaman Hearings May Open Door to Cap-And-Trade Alternatives

Senator Jeff Bingaman (D-NM) held an Energy & Natural Resources Senate Committee hearing on climate legislation on September 15 to examine the impacts of emissions trading on energy markets, focusing on its potential to spur price volatility. The hearing highlighted deep divisions within the Democratic party over the merits of a greenhouse gas cap-and-trade plan, and may open the door to legislative alternatives after several senators at the hearing said they prefer a carbon tax. Senators Byron Dorgan (D-ND) and Maria Cantwell (D-WA) are concerned about market manipulation in a cap-and-trade scheme, and prefer a carbon tax. Senators Bob Corker (RTN) and Lisa Murkowski (R-AK) also expressed interest in the merits of a carbon tax over a cap-and-trade program. Sena Mary Landrieu (D-LA), Blanche Lincoln (D-AK) and Evan Bayh (D-IN) are also concerned about cap-and-trade.