ASBC Policy manager Eliza Kelsten discussed state-based carbon pricing proposals with VT State Representative Sarah Copeland-Hanzas and MA State Representative Jen Benson.
2. Climate change
presents
massive threat
US GDP lost to climate change will
likely equal $44 trillion by 2060
Without action, average annual
temperatures in the Northeast could
rise between 5.3 degrees and 9.1
degrees Fahrenheit by 2071
Boston and other New England
communities are likely to see about a
25 percent higher increase in sea level
rise than other areas
A recent study found a connection
between the timing of extreme
warming in the Arctic and the worst
weather in the U.S.
3. State action is
required to
meet emissions
reductions
goals
Many businesses are already taking
individual action, but it is not enough
State-based policy solutions are
necessary in order to keep warming
below 2 degrees C
All New England states have set
significant emissions reductions targets
and need comprehensive policies across
all sectors to meet them
The Carbon Costs Coalition, a group of
legislators from 9 states, is working to
pass market-based climate policies,
like a price on carbon, that reduce
emissions, promote regional
cooperation, and create jobs
4. What is a
carbon price?
A carbon price internalizes the cost of
greenhouse gas emissions by assigning a
monetary value to each ton emitted
The price can be implemented at
different points throughout the supply
chain
Revenues can be returned to citizens
and businesses through dividends to
help offset higher prices and/or
invested to further reduce emissions,
promote resiliency, and create jobs
5. Benefits of a
carbon price
Reduce
emissions
1
Promote fair
competition
2
Spur
innovation and
job creation
3
6. Rep. Jennifer
Benson
State Representative Jennifer
Benson has served in the Massachusetts
House of Representatives since 2009,
and currently serves as the Chair of the
Joint Committee on State
Administration and Regulatory
Oversight. In addition to chairing the
Committee, Representative Benson
sits on the National Board of
Directors for Women In Government.
This session, she filed ambitious carbon
pricing legislation that has gained more
than 50 cosponsors and the support of
leading environmental and energy
advocacy organizations.
7. CARBON FEE: LEGISLATION
An Act to promote green infrastructure, reduce
greenhouse gas emissions, and create jobs (H.1726) –
Sponsored by Rep. Jennifer Benson
Puts an initial fee of $20/ton on carbon dioxide, raises it to $40/ton
over 4 years
20% of fees go into a Green Infrastructure Fund for use in
transportation, clean energy projects, and climate change
preparation
80% of fees go back to consumers and employers, with
protections for low and moderate income households
8. CARBON PRICING: REBATES
H.1726 rebates 80% of fees back to consumers and
employers, with protections for low and moderate
income households
Low and moderate income households would receive higher rebates
Rural residents dependent on cars would receive higher rebates
Employers’ rebates would be based on their number of employees
Most business sectors would come out about even
Businesses that face strong competitive pressures from outside the state
would receive higher rebates
Consumers and employers can spend this rebate on anything, but the hope is
that they will spend some of it on energy efficiency improvements
9. CARBON PRICING: GREEN INFRASTRUCTURE FUND
H.1726 puts 20% of revenue into a Green
Infrastructure Fund
Fund would be spent on infrastructure and green energy projects
Transportation
Climate change resiliency
Energy efficiency
Would raise approximately $250 million per year
Communities with median incomes in the bottom 33% would receive at
least 1/3 of investments
10. CARBON PRICING: WHY REVENUE POSITIVE?
Massachusetts is struggling to meet the emissions
reduction targets set by the Global Warming Solutions
Act (GWSA) of 2008
1990 benchmark is 94 million metric tons of CO2 equivalent (MMTCO2e)
We’re on track to meet 2020 target of 25% reduction below 1990 levels
<71 MMTCO2e
We’re in danger of missing 2050 target of 80% reduction below 1990 levels
<19 MMTCO2e
To meet the 2050 target, Massachusetts needs to take bold action
A revenue positive carbon price that puts a significant amount of resources
into renewable energy projects can be part that bold action
13. CARBON PRICING: THE EVIDENCE
Study found that British Columbia’s carbon fee has cut emissions
by about 10% since 2008
Study also found there have been no negligible effects on the economy1
Since RGGI was formed in 2009, emissions from electricity
generation in RGGI states have been cut by almost 50%
At least half of this reduction is directly attributable to RGGI2
Harvard University study estimates that introducing a carbon fee in
MA would save hundreds of lives and $2.9 billion in health care
costs by 20403
A study estimates that if a national carbon fee were established, in
just 10 years, the benefits would be:4
2.1 million more jobs
33% reduction in carbon emissions
1. British Columbia’s Revenue-Neutral Carbon Tax. Duke University and the University of Ottawa, 2015.
2. Why Have Greenhouse Emissions in RGGI States Declined? Duke University, 2015.
3. Air Quality and Health Co-Benefits of a Carbon Fee-and-Rebate Bill. Harvard University, 2017.
4. Economic, Climate, Fiscal, and Power Impact of a National Carbon Tax. Regional Economic Models,
Inc. (REMI), 2014.
14. State Representative Sarah Copeland-
Hanzas represents Orange County’s 2nd district in
the Vermont state legislature. She owns a small
business in Bradford, The Local Buzz Café, and is
a former public school teacher. Rep. Copeland-
Hanzas was first elected in 2004, and she is the
lead sponsor of H.791, a proposal to put a price on
carbon refunded through electricity bills, in the VT
House.
REP. SARAH
COPELAND-HANZAS
30. For more information or to
join our coalition of
businesses working to put a
price on carbon, go to
carbonprice.asbcouncil.org
Email Eliza Kelsten,
ekelsten@asbcouncil.org