Dive Brief:
- Massachusetts is one of six states considering enacting a price on carbon, which lawmakers say may be the only way to meet the state's aggressive emissions goals.
- According to InsideClimate News, five other states including Connecticut, Oregon, Rhode Island, Vermont and Washington are considering putting a carbon tax in place.
- A bill proposed by Massachusetts state Sen. Michael Barrett (D) would add a $10/ton carbon fee in the first year after legislation is passed, rising to $40/ton after seven years.
Dive Insight:
Support for a carbon price is growing in some states, as companies and policymakers increasingly see the method as an effective way to meet emissions goals.
A carbon tax is increasingly seen as a way to meet climate goals and reduce global warming. Some are calling for a global tax, a move that U.N. climate chief Christiana Figueres supports, but said will not be discussed at upcoming climate talks in Paris.
Earlier this year, a group of large energy companies said a price on carbon "should be a key element" of policies to stimulate investment in low-carbon technologies. Utility giant Exelon has told the U.S. Environmental Protection Agency that it believes a well-designed carbon price could help modernize the country's aging electric system.
In Massachusetts, two proposals are being considered, but a major point of debate is how the tax will be used. Barrett's proposal would rebate all of the money back to the state's consumers – called a "revenue-neutral" strategy – while a bill proposed by Sen. Marc Pacheco would reserve 20% for transportation and energy projects in the state.
InsideClimate News covered a hearing on the measures this week, and reports most speakers appeared to favor the Barrett bill, which contains the only specific price of the two bills.
Barrett's bill also addresses Massachusetts' unique energy landscape – only 20% of the state's emissions come from power generation, while the rest come from transportation, heating and other sectors. Those sectors are not covered by the Regional Greenhouse Gas Initiative (RGGI), and Barrett's bill would fix that gap. But it would also mean consumers could see higher prices at the gas pump.
A Massachusetts' 2008 law called for cutting carbon emissions by 80% by 2050, and a carbon tax could help meet those goals. But there are questions over whether Gov. Charlie Baker (R) would sign Barrett's bill.
