Montana has stepped up to the discussion of carbon pricing with a proposal for a modest carbon tax. Although it didn’t pass, the bill served to get the conversation on carbon pricing started. Although Montana is the fourth largest U.S. state geographically, its population is just over 1 million, making it a small state in market. Like other small market states, it would make most sense to either enter a cap and trade block or have a regional carbon tax.
HB193 Establish a carbon tax and distribute revenue (Dunwell). The fee would start at $10 per ton of CO2 in 2020 and increase by $1 plus the rate of inflation annually. The bill is revenue positive with 10% of revenue going to the large emission source rehabilitation and response account, 10% to the community impact account, 10% to the healthy communities account, 20% for disbursement in accordance with 15-35-108, and 50% to the state general fund to be appropriated by the legislature. The bill did not pass.
Last updated September 14, 2020