RHODE ISLAND
Rhode Island introduces carbon tax bill on March 15, 2019
The bill is H 5869 An Act Regarding Health and Safety - Economic and Climate Resilience Act of 2019. The act, like its title, is gobbledygook. After a long, tendentious introduction, we finally get to the meat of the bill: $15 per metric ton, increasing by $5 per year, capping at $50 per ton, then increasing by inflation thereafter. It goes into a fund run by public officials who can change the tax rate or distribution as they see fit. Initially the funds are to be distributed as follows: 28% goes essentially into a climate change slush fund; 40% goes to low-income residents; and 30% goes to businesses.
Here's the impact of the fund for various fuels, and electricity. The bill goes into effect July 1, 2019, and so years shown are fiscal years; i.e. 2019 is July 1, 2019 - June 30, 2020, and so forth. Prices shown are per gallon for heating oil, gasoline and propane, and per ccf of natural gas and per KWHr of non-heat electricity. Household costs are based on average annual consumption. Electricity is based on the current average mix of fossil fuels reported by ISO-New England for their power plants.
Heating Oil
2019 $0.1525/gall $122/household
2023 $0.3557/gall $285/household
2028 $0.5287/gall $423/household
Gasoline
2019 $0.1334/gall $88/car
2023 $0.3113/gall $204/car
2028 $0.4626/gall $303/car
Propane
2019 $0.0864/gall $106/household
2023 $0.2017/gall $246/household
2028 $0.2998/gall $366/household
Natural Gas
2019 $0.0878/ccf $95/household
2023 $0.2049/ccf $221/household
2028 $0.3046/ccf $328/household
Electricity (non-heat)
2019 $0.00156/KWH $19/household
2023 $0.00395/KWH $44/household
2028 $0.00542/KWH $66/household
So how does this impact the average family? Let's say in 2028 they heat with natural gas, own two cars, and use average electricity. Their tax during the year will be $328 for heat, $606 for two cars, and $66 for electricity for a total bill of $1000. If they are not low-income, they will not get any rebate in the form of a tax credit.
Here's the impact of the fund for various fuels, and electricity. The bill goes into effect July 1, 2019, and so years shown are fiscal years; i.e. 2019 is July 1, 2019 - June 30, 2020, and so forth. Prices shown are per gallon for heating oil, gasoline and propane, and per ccf of natural gas and per KWHr of non-heat electricity. Household costs are based on average annual consumption. Electricity is based on the current average mix of fossil fuels reported by ISO-New England for their power plants.
Heating Oil
2019 $0.1525/gall $122/household
2023 $0.3557/gall $285/household
2028 $0.5287/gall $423/household
Gasoline
2019 $0.1334/gall $88/car
2023 $0.3113/gall $204/car
2028 $0.4626/gall $303/car
Propane
2019 $0.0864/gall $106/household
2023 $0.2017/gall $246/household
2028 $0.2998/gall $366/household
Natural Gas
2019 $0.0878/ccf $95/household
2023 $0.2049/ccf $221/household
2028 $0.3046/ccf $328/household
Electricity (non-heat)
2019 $0.00156/KWH $19/household
2023 $0.00395/KWH $44/household
2028 $0.00542/KWH $66/household
So how does this impact the average family? Let's say in 2028 they heat with natural gas, own two cars, and use average electricity. Their tax during the year will be $328 for heat, $606 for two cars, and $66 for electricity for a total bill of $1000. If they are not low-income, they will not get any rebate in the form of a tax credit.