According to the Washington Post, in a recent meeting with prominent environmental lobbyist, Senator Lindsey Graham (R-SC) said "cap and trade is dead." In 2009, the House of Representatives passed cap and trade legislation which, if enacted, would have severe repercussions for gasoline and diesel marketers and their customers. "The Waxman/Markey cap and trade bill would have pushed gasoline over four dollars a gallon and likely over five dollars," said Oregon marketer Jason Powell, who chairs PMAA's Climate Change Task Force.

The pronouncement by Senator Graham is significant because Graham has been working closely with Senator John Kerry (D-MA) and Senator Joe Lieberman (I-CT) searching to write climate legislation that moderate Senators could support. Both Kerry and Lieberman have been highly visible in their effort to curb greenhouse gases, which they believe are the primary source of climate change. Many scientists agree that greenhouse gases contribute to climate change but often disagree on exactly how much carbon emissions contribute.

PMAA has been very opposed to the Waxman/Markey cap and trade bill because it unfairly burdens consumers of liquid fuels such as gasoline, diesel and heating oil. Senator Graham indicated that he and Senator Kerry plan to introduce legislation in March that will apply different carbon controls to individual sectors of the economy. While many experts believe global carbon restrictions are needed, the recent global conference in Copenhagen revealed that many countries are unwilling to accept binding agreements to restrict carbon.

The cap and trade concept has become more controversial in recent months because of its potential for massive bureaucracies and credit trading influence. Giving Wall Street a new avenue to speculate on carbon credit value is not attractive to many legislators.

While the new Kerry/Lieberman/Graham legislation will likely impose unnecessary price increases on liquid fuels, the measure will be better than cap and trade.