Evaluating the social cost of carbon emissions. (FE)

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

This bill requires the Public Service Commission to consider the social cost of carbon in determining whether to issue certificates required to construct large electric generating facilities or high-voltage transmission lines or to engage in certain other public utility projects. The bill defines “social cost of carbon” as a measure of the economic harms and other impacts expressed in dollars that result from emitting one ton of carbon dioxide into the atmosphere. The bill includes the legislature's finding that the social cost of carbon is $50 per ton of carbon dioxide emitted into the atmosphere. However, the bill requires PSC to annually evaluate the social cost of carbon and adjust as necessary the dollar amount found by the legislature. In making the evaluations, PSC must use integrated assessment models and consider appropriate discount rates. The bill requires any adjustment by PSC to be consistent with the international consensus on the social cost of carbon. The bill requires PSC to consult with the Department of Natural Resources in making the evaluations.

The bill also requires that, beginning no later than January 1, 2023, PSC must submit an annual report to the legislature describing the PSC's evaluation of the social cost of carbon. If PSC adjusts the dollar amount found by the legislature, the report must also specify the social cost of carbon as adjusted by PSC.

Who's behind it

6 senators are its authors⁠. All 6 are Democrats.

23 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From PSC