Sen. Brian Schatz, in one of his first major moves since taking office in Congress, joined three other Democrats today in releasing a “discussion draft” on a proposal to charge a fee to large producers of greenhouse gasses, including those that burn or produce coal or gas.

The draft proposal is meant to start discussions involving stakeholders, but appears to have a tough road ahead, facing opposition from among others, the National Association of Manufacturers. The association said recently that a carbon fee would kill jobs and lower wages, an assertion proponents object to. The bill also does not have the support of Alaska Sen. Lisa Murkowski, ranking Republican on the Senate Energy and Natural Resources Committee.

Murkowski has in the past opposed carbon-pricing. saying a fee that would affect energy producers would raise energy costs. Robert Dillion, Murkowski’s communications director for the committee, said the Senate is not expected to take up carbon pricing legislation this Congress.

However, the proposal was touted yesterday as a deficit-reducing plan as Congress begins work on its budget facing Republican calls for cuts to reduce the deficit. Background documents made available gave no estimate was given on how much revenue the fee would produce, but estimated that 7,000 facilities would pay a fee, covering 85 percent to 90 percent of total U.S. emissions.

The proposal would not increase reporting requirements on industries, but use data on carbon emissions already reported to the Environmental Protection Agency. Based on as yet undetermined rates, the fees would be collected by the Internal Revenue Service.

Schatz, a member of the Energy and Natural Resources Committee, said in a statement.  “By reducing carbon pollution, this proposal would drive real action in combating climate change and improving air quality. 

See a press release about the proposal, with links to background papers here.

— Kery Murakami