Climate Change Measure Stalled in Senate

Negotiations have broken down between Senators Kerry (D-Mass.), Lieberman (I-Conn.) and Graham (R-S.C.) on legislation intended to reduce greenhouse gas emissions. The stalemate is over issues unrelated to the legislation and therefore could potentially be resurrected at any time. How to deal with transportation is still unresolved. Discussions initially focused on imposing a fee on petroleum that would be passed on to consumers. The so-called "linked-fee", however, has been portrayed as a gas tax increase and the Senators backed away from supporting it.  However, they intend to have some type of carbon pricing mechanism requiring oil companies to buy pollution allowances for their activities. Language has been submitted to EPA for its evaluation. AGC has been urging Senators to ensure that any revenue from additional fees on transportation motor fuels be directed into the Highway Trust Fund. AGC is concerned that should a fee be imposed and not directed to the Highway Trust Fund it would undermine efforts to increase trust fund revenues necessary to fund the transportation reauthorization legislation. To contact your Senators on this issue please click here.