The changes that SB 775 proposes for the state’s carbon trading program are dramatic — and, to my eyes, amazingly thoughtful. I know some environmental groups have reservations (on which more later), but in my opinion, if it passes in anything close to its current form, it will represent the most important advance in carbon-pricing policy in the US in a decade. Maybe ever. Yeah, really… The system proposed in the new bill reflects the fact that policymakers expect cap-and-trade to take over as the primary instrument of carbon reductions in the state. It’s easy to achieve low-hanging emission reductions with a suite of regulations. To really dig in to the more difficult reductions, you need a more predictable and powerful instrument. That’s what this system is designed to be.