Senate Bill Proposes Cap-and-Trade Oversight

A bill introduced in the U.S. Senate on Tuesday would give the
Commodity Futures Trading Commission (CFTC) full authority over carbon
markets created by a cap-and-trade sytem. 

The bill, introduced by Senators Dianne Feinstein (D-Calif.) and Olympia Snowe (R-Maine), differs fom the Waxman-Markey bill passed by the House of Representatives last month. 

The Waxman-Markey bill, a.k.a. The American Clean Energy and
Security Act, splits oversight authority between the CFTC and the
Federal Energy Regulatory Commission (FERC). The FERC would regulate
cash-based permit trading, while the CFTC would monitor carbon futures
and derivatives trading.

The Senate bill also would createa centralized database to track multiple marketplaces in real time. 

Estimates suggest a U.S. cap-and-trade market could generate up
to $370 billion in yearly activity, leading legislators and watchdog
groups to call for close oversight to avoid market manipulation and
fraud.

The Senate Environment and Public Works Committee on Tuesday began hearings in an effort to pass climate change legislation before the August recess.

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