Rhode Island lawmakers propose carbon tax

OREANDA-NEWS. March 16, 2015. Democrats in the Rhode Island legislature yesterday introduced a bill that would tax imports of fossil fuels into the state to create a clean energy fund.

The proposal, HB 5857, would create an excise tax of 15?/ton of CO2e released by fuel's combustion that would be assessed starting in 2016. Each year after that, the rate would rise by 5?/ton in real 2015 dollars. Fees would be collected for releases of other greenhouse gases, including methane, during transport or use.

The revenue would feed into a new fund to finance programs to build renewable energy capacity and support research and development of new technologies. The funds could also be used to cut CO2 emissions in public transport.

The bill defines taxable fossil fuels as coal, natural gas and any petroleum product that enters the state for use as a fuel. Renewable biomass or waste vegetable oil biodiesel are not included under the definition.

Five Democrats in the House of Representatives introduced the bill, which was referred to the House Finance Committee.

Lawmakers in another New England state, Vermont, earlier this week introduced two proposals to create a similar carbon tax. One of the bills, H412, would start the tax at \\$10/metric tonne of emissions, increasing by \\$10/yr until it reaches \\$100/t. All but 10pc of the revenue would go back to taxpayers. The other bill, H395, would start the tax at \\$50/t, increasing by \\$10/yr to \\$100/t. The bill would offset 80pc of the tax through rebates to employers and a personal tax credit.