PROVIDENCE – Rhode Island has committed to a multijurisdictional program to reduce motor vehicle pollution by selling emission allowances to gasoline and diesel fuel suppliers for pollution caused by the fuels they sell in participating states, Gov. Gina M. Raimondo announced Monday.
The initiative, called the Transportation and Climate Initiative Program, would guarantee Rhode Island a reduction of at least 26% in carbon emissions from 2022 to 2023 and is expected to generate $20 million annually, the governor’s office said.
Through the program, allowances would be sold at auction to fuel wholesalers. The TCI-P is modeled after the “cap-and-invest” system for power plant emissions known as the Regional Greenhouse Gas Initiative, of which Rhode Island is already a participant.
Model legislation will be sent to the General Assembly for consideration in 2021, as each participating state would need to adopt state-level policies to operate the program.
The funds will be reinvested in equitable and cleaner transportation options in each state. Participating states have also agreed to allot no less than 35% of the annual proceeds to assist communities overburdened by transportation pollution and associated negative health impacts and underserved by the current transportation system.
If fuel companies pass the cost of the allowances onto consumers, the price of gas in the region could climb by 5 cents to 17 cents per gallon, according to projections made in December 2019.
Critics of the initiative have previously said that it will be bad for the economy and for families that rely on their cars to get to work and school.
Other signatories of the memorandum Monday included Massachusetts, Connecticut and Washington D.C., marking the first official commitments to the program.
TCI-P was developed through a collaboration of 13 Northeast and mid-Atlantic jurisdictions.
“Joining the Transportation and Climate Initiative is an investment in Rhode Islanders,” said Raimondo in a statement. “Most importantly, it will provide much needed relief for the urban communities who suffer lifelong health problems as a result of dirty air. I look forward to working with the Rhode Island General Assembly to launch this program.”
