Draft Climate Bill Contains Oil Transport Tax

Draft climate change legislation to be introduced in the Senate later this month contains an transportation fee (or tax) to be assessed on oil at the refiner level, according to a Reuters report.

Three US Senators–Democrat John Kerry, Republican Lindsey Graham and Independent Joseph Lieberman–are attempting to piece together a compromise bill that will gain support from the oil industry and other large polluters of greenhouse gas. 

As reported, the fee will be charged at the terminal rack, before shipments are made to gasoline stations. However the additional cost, will be passed on to consumers, who are expected to pay about 15 cents more per gallon. Lawmakers hope the fee will lead to greater fuel conservation in the transportation sector and the development of more fuel-efficient vehicles.

News of the fee has touched off a wave of lobbying in Washington, as numerous industries attempt to influence how the tax revenue will be allocated. 

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