A multi-state initiative that would lower emissions in Vermont’s transportation sector could transform the way gas and diesel is sold in the state.
The Transportation and Climate Initiative is a cap-and-invest system in which fuel suppliers would be required to buy carbon allowances through an auction system.
Twelve Northeast and Mid-Atlantic states can opt into the proposal. The initiative was launched in December 2018 and a final proposal will be released in December.
Peter Walke, deputy secretary of the state Agency of Natural Resources and Vermont’s representative for the initiative, presented the plan at the Renewable Energy Vermont conference on Thursday.
Walke explained how the cap-and-invest system would work: A carbon emissions cap would start at the state’s current emissions level, and would decline over time to an as-yet specified goal. The number of tons of carbon allowances for sale would be capped. Suppliers would buy the allowances in an auction process from the state over a period of time up to the cap.
“The cap is the backstop,” Walke said. “The cap is ultimately what enforces action.”
The proceeds from the auctions would be invested in initiatives to reduce emissions in Vermont, Walke said. Rural communities without adequate public transportation would benefit from the investments.
The proposal does not specify how carbon tons and emission allowance prices will be calculated. The Transportation and Climate Initiative is currently collecting public comment and a final report will be presented in December.
If the proposal is accepted by Gov. Phil Scott, Walke said an anticipated start date for the program would be 2022.
Scott has opposed a carbon tax in the past because he believes it would inhibit economic growth. He recently told VTDigger he would not endorse the Transportation and Climate Initiative proposal without seeing the final report.
Rep. Michael Yantachka, D-Charlotte, who attended the conference session, said Scott’s rejection of a carbon tax is “disingenuous” because the money would be reinvested in the economy, spurring growth.
Yantachka is concerned about the three year ramp up period and wants to do more to lower emissions now.
“We’re missing out on three or more years of ability to reduce our transportation greenhouse gas emissions,” Yantachka said.
Walke wouldn’t comment on whether he thinks Scott would support the proposal. He said he was charged with finding the facts and presenting them.
“There is a cost associated with any regulatory program that’s going to reduce emissions,” Walke said.
