Three key senators are engaged in a radical behind-the-scenes overhaul of climate legislation, preparing to jettison the broad "cap-and-trade" approach that has defined the legislative debate for close to a decade. ...It is hard to imagine a worse policy than the Cap-and-Trade program being kicked around Congress, but this new proposal fits the bill.
Sen. Lindsey O. Graham (R-S.C.) ... , Sens. John F. Kerry (D-Mass.) and Joseph I. Lieberman (I-Conn.) ... plan to introduce legislation next month that would apply different carbon controls to individual sectors of the economy instead of setting a national target.
For all its problems, CAT at least allows markets to price the permits, which means economic considerations determine who emits more or less carbon (given the number of permits).
The command-and-control system being suggested by Graham et al. means politics, not costs and benefits, will determine who gets to emit carbon. Another victory for crony capitalism.