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For such firms, the introduction of carbon taxes or fees on emissions could prove devastating.
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But the balance depends on the cost of separation and storage versus what kind of tax or other fee Congress might put on emissions.
Because Kerry-Lieberman embraces vitally important fees on carbon emissions that the White House is afraid will be exploited by Republicans in the midterm elections.
A carbon tax, by contrast, levies a blanket fee on carbon emissions, and is widely considered by economists to be the most effective way of curbing emissions.
But instead of placing a rising fee on carbon emissions to make fossil fuels pay their true costs, leveling the energy playing field, the world's governments are forcing the public to subsidize fossil fuels with hundreds of billions of dollars per year.
Also recommended: A new federal fee on vehicle emissions tests of $40 per person to "shift the cost of vehicle inspection from the state to the vehicle owner".
Senator Sanders understands this because in February 2013 he and Sen. Barbara Boxer (D-CA) proposed an upstream fee on carbon emissions, with three-fifths of revenues refunded to residents as a Family Clean Energy Rebate.
More states are bound to explore caps or fees on carbon dioxide emissions this year, Ritter said.
A carbon fee at the source, based on emissions per ton, would create an incentive for producers to develop innovative solutions to decrease their fossil fuel consumption and lower their emissions.
Instances include direct investments in R&D or infrastructure, preferential pricing policies (e.g. road pricing based on emissions, preferential parking fees), subsidies for EV purchase or EV infrastructure construction and tax incentives for EVs (e.g. concerning fuel taxes, circulation taxes/motor taxes, registration/purchase taxes).
Mr. Waxman, joined by Representative Earl Blumenauer, Democrat of Oregon, and Senators Sheldon Whitehouse of Rhode Island and Brian Schatz of Hawaii, both Democrats, distributed a relatively simple proposal to impose a fee on greenhouse gas emissions from power plants, factories, refineries and other major sources.
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