PROVIDENCE – Rhode Island was among nine Northeast and mid-Atlantic states and Washington, D.C., Tuesday announcing a partnership in a project designed to create a cap-and-trade regime for emissions from the transportation sector, using proceeds to “develop the clean energy economy and reduce carbon emissions from the transportation sector.”
The project, being developed by the the Transportation and Climate Initiative, is reminiscent of the Regional Greenhouse Gas Initiative, in which nine states in the region hold regular auctions for carbon dioxide emission allowances for power generators and then distribute the money raised to the participating states. Since beginning in 2008, the program has raised a total of $2.9 billion, $61.6 million of which has gone to Rhode Island, which has used the proceeds to invest in energy efficiency programs and support the development of the clean-energy industry.
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The TCI said it still had to determine which regulated entities and fuels to include in the program, as well as at what level to cap emissions, among other factors. The announcement, while avoiding identifying specifically what the cap-and-trade mechanism would look like, appeared to be aimed at fuel providers. The group, on its website, said that more than one-third of all carbon emissions come from the transportation sector.
John Flaherty, deputy director of Grow Smart Rhode Island, which advocates for increasing public transit options, among other things, said that while details of the plan have yet to be worked out, its framework does seem to be based “on the very successful RGGI model.”
He said that estimates for the cost to consumers for the indirect tax on fossil fuel use for transportation will come to about $6 per month, with the actual amount varying depending on how efficient the mode of transportation is. For instance, he said, an electric car would pay nothing.
“Our cars, SUVs and trucks constitute the largest source of damaging greenhouse gas emissions,” stated R.I. Department of Environmental Management Director Janet L. Coit. “In the absence of an effective national strategy on climate change, states must innovate and lead to protect the health, safety, and livelihoods of our people, communities, and businesses. Under Gov. Raimondo’s leadership, Rhode Island will continue to work aggressively to reduce GHG emissions, and the TCI initiative presents a major, market-based opportunity to develop cleaner transportation systems.”
“Climate change is one of the most pressing challenges we face,” said Gov. Gina M. Raimondo. “This year, we started the process of removing aging diesel buses from our roadways and replacing them with electric vehicles. We’re proud to be a member of the Transportation Climate Initiative, and I applaud this critical next step toward a greener future.”
The group plans to meet and create a regional policy over the course of the next year, after which, states would vote to implement. The group – which includes Rhode Island along with Connecticut, Delaware, Maryland, Massachusetts, New Jersey, Pennsylvania, Vermont and Virginia, as well as the District of Columbia – said it will consider zero-emission vehicle growth, charging station infrastructure, business models and partnerships for transportation systems, and pilot and demonstration projects as well as the TCI policy implementation.
National Grid PLC Senior Vice President and Chief Customer Officer Terence Sobolewski said that the energy company “welcomes the opportunity to participate in the stakeholder process to explore this transportation program and support the states undertaking a full technical, environmental, and economic analysis to evaluate the potential benefits and costs of a regional transportation program.
“Through similar regional partnerships like the Regional Greenhouse Gas Initiative and forward thinking policies, National Grid and our jurisdictions have achieved meaningful greenhouse gas reductions in the power sector and have made commitments to significantly reducing greenhouse gas emissions in the transportation and heating sectors in the coming years,” he said in prepared remarks.
Flaherty added that the delivery of the TCI plan will come at a good time, because it will roughly coincide with the delivery of the state’s first-ever comprehensive Master Plan, which was begun in June and is looking out to the Ocean State’s transit needs through 2040. The study is designed to look at all modes of transportation, with the goal of increasing transit options and supporting economic development.
