Bill > S0338

This bill establishes a comprehensive carbon fee program in Rhode Island designed to address climate change and economic resilience. The bill would impose a gradually increasing fee on fossil fuel sales starting at $15 per metric ton of carbon dioxide equivalent, rising to $50 per ton, with subsequent increases tied to inflation. The collected funds would be deposited into a new Economic and Climate Resilience Fund and distributed in three main ways: 28% for climate resilience and renewable energy initiatives (with priority given to lower-income municipalities), 30% as dividends to employers, and 40% as direct dividends to residents. The dividend distribution is structured to provide proportionally more support to lower-income residents, with additional amounts for households with children. The bill's goals include reducing greenhouse gas emissions, supporting low-income communities, creating jobs in clean energy, and helping Rhode Island adapt to climate change. The carbon fee would be implemented only after at least three states in the Regional Greenhouse Gas Initiative (RGGI) enact similar fees, with an anticipated start date of January 1 following that multi-state agreement. An independent oversight board would be created to monitor the fund's implementation and report annually on its effectiveness and potential improvements.

Budget and Finance

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