Kerry: Three Big Oil Companies Likely to Back Climate Bill

Flickr/<a href="http://www.flickr.com/photos/nostri-imago/2978962210/">cliff1066</a> (<a href="http://www.creativecommons.org">Creative Commons</a>).

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


When Sens. John Kerry, Lindsey Graham and Joe Lieberman release their climate bill on Monday, they expect to have the backing of three of the five major oil companies, Mother Jones has learned. In a conference call with a coalition of progressive business leaders on Thursday evening, Kerry said he believes those companies will “actively participate in supporting this bill.” He hopes the other big oil companies will at least hold their fire on the bill, and added that he believes the American Petroleum Institute (API), the oil industry’s major trade group, will call off its ad campaign attacking the legislation.

Kerry also said that the Edison Electric Institute—the main trade group representing utilities—will support their measure. “We are bringing to the table a significant group of players who were never there for the Waxman-Markey bill,” Kerry said. (While Edison supported Waxman-Markey, it was opposed by several big oil companies and API).

In the teleconference, organized by the We Can Lead coalition, Kerry outlined specific details from the bill that have not previously been publicly available. Here’s a rundown:

  • The bill would remove the Environmental Protection Agency’s authority to regulate carbon dioxide under the Clean Air Act, and the states’ authority to set tougher emissions standards than the federal government.
  • There will be no fee—or “gas tax”—on transportation fuels. Instead, oil companies would also be required to obtain pollution permits but will not trade them on the market like other polluters. How this would work is not yet clear.
  • Agriculture would be entirely exempt from the cap on carbon emissions.
  • Manufacturers would not be included under a cap on greenhouse gases until 2016.
  • The bill would provide government-backed loan guarantees for the construction of 12 new nuclear power plants.
  • It will contain at least $10 billion to develop technologies to capture and store emissions from coal-fired power plants.
  • There will be new financial incentives for natural gas.
  • The bill would place an upper and lower limit on the price of pollution permits, known as a hard price collar. Businesses like this idea because it ensures a stable price on carbon. Environmental advocates don’t like the idea because if the ceiling is set too low, industry will have no financial incentive to move to cleaner forms of energy.
  • The energy bill passed by the Energy and Natural Resources Committee last year will be adopted in full. This measure has sparked concerns among environmentalists for its handouts to nuclear and fossil fuel interests.

Some elements of the legislation remain in flux, Kerry said. The senators still haven’t figured out how to deal with the contentious question of offshore drilling. He added that they are still trying to secure the support of the Chamber of Commerce, another prime foe of the House measure, but remain hopeful that the powerful business lobby might endorse the bill.

UPDATE: Post Carbon reports that the three oil companies expected to endorse the bill are Shell, BP and ConocoPhillips.

More MotherJones reporting on Climate Desk

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate