Massachusetts’ proposed S. 2477 (2020) creates a carbon price that leaves program design to future gubernatorial administrations to decide. They would be free to choose among a variety of market-based carbon reduction mechanisms, including a revenue-neutral carbon fee or regional “cap and trade.” The bill does set a time limit for establishing the carbon price based on specific sectors. A carbon price on transportation would need to be set by January 1st, 2022 (and the requirement could be met through the Transportation & Climate Initiative). A carbon price applying to commercial, industrial, and institutional buildings would need to be in place by January 1st, 2025. Finally, a carbon price applying to residential buildings will be required by January 1st, 2030. The bill does not address how the revenue from these carbon prices would be used, but revenue use would be determined by the legislature in the future.
As of April 2020, the bill has not advanced further in the Massachusetts House.