2021 -- S 0872 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO HEALTH AND SAFETY – TRANSPORTATION EMISSIONS AND MOBILE

(TEAM) COMMUNITY ACT

     Introduced By: Senators DiMario, McCaffrey, Goodwin, Euer, Quezada, Miller,
Valverde, Goldin, and Kallman

     Date Introduced: May 05, 2021

     Referred To: Senate Environment & Agriculture

     It is enacted by the General Assembly as follows:

     SECTION 1. The General Assembly hereby finds:

     (1) There is scientific consensus that Earth's climate is now changing faster than at any

point in the history of modern civilization, primarily as a result of greenhouse gas (GHG) emissions

from human activities; climate change has resulted in the increased frequency and severity of

extreme weather events; and climate change poses a clear, present, and increasingly dangerous and

costly threat to the health, safety and welfare of the residents of Rhode Island.

     (2) Rhode Island has committed to mitigate the risks of climate change through strategies

intended to reduce GHG emissions across all sectors; and the transportation sector causes

approximately forty percent (40%) of GHG emissions in Rhode Island.

     (3) A group of Northeastern and Mid-Atlantic states, as well as the District of Columbia

(the “Participating Jurisdictions”), have worked together to create the transportation climate

initiative program (“TCI Program”).

     (4) The participating jurisdictions agreed to collaborate on the establishment of a multi-

jurisdictional cap-and-invest program (the “TCI Program”) that will ensure reductions in

greenhouse gas emissions from the transportation sector, and to strategically invest in programs to

help residents transition to affordable, low-carbon transportation options that provide substantial

public health benefits, reduce congestion, and increase both economic and job opportunities.

     (5) The goal of the Rhode Island TCI (“RITCI”) is to cap and reduce CO2 emissions from

the transportation sector in a cost-effective and market-based manner and invest in projects that

support the goals of the TCI program.

     (6) Living and working near sources of air pollution can lead to higher exposures of air

contaminants, many of which contribute to adverse health effects that negatively impact public

health.

     (7) Lower-income households, people of color and other disadvantaged communities are

disproportionately exposed to air pollution from mobile sources. Higher exposures to air pollution

and other contaminants contribute to adverse health effects that negatively impact public health.

     (8) The state of Rhode Island is committed to working with communities, businesses and

labor to accelerate the transition to an equitable, safe, and affordable low-carbon transportation

sector that will improve public health, create new economic opportunities, and provide enhanced

mobility options for Rhode Island communities.

     (9) The state of Rhode Island recognizes and is committed to working with and investing

in communities that are overburdened by air pollution, vulnerable to the impacts of a changing

climate and/or underserved by the existing transportation system.

     SECTION 2. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

amended by adding thereto the following chapter:

CHAPTER 95

TRANSPORTATION EMISSIONS AND MOBILE (TEAM) COMMUNITY ACT

     23-95-1. Short title.

     This chapter shall be known and may be cited as the “Transportation Emissions and Mobile

(TEAM) Community Act”.

     23-95-2. Definitions.

     As used in this chapter:

     (1) “Allowance” means a limited authorization to emit a fixed amount of carbon dioxide

(CO2), subject to all applicable limitations contained in this chapter and the rules and regulations

to be adopted by the department.

     (2) “Department” means the Rhode Island department of environmental management.

     (3) "Equity and environmental justice advisory board" or "board" means the board

established pursuant to the provisions of § 23-95-5.

     (4) “Regulated entity” means an entity that the department by regulation determines shall

be subject to the requirements of RITCI.

     (5) “Rhode Island transportation climate initiative” or “RITCI” means the cap-and-invest

program implemented pursuant to this chapter, to cap and reduce the CO2 emissions that result from

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the combustion of the quantities of fuel supplied in Rhode Island by the regulated entities.

     (6) “Transportation climate initiative program” or “TCI Program” means the multi-

jurisdictional cap-and-invest program developed by a group of northeastern and mid-atlantic states

and the District of Columbia and outlined in a memorandum of understanding dated December 21,

2020, as may be amended or expanded, designed to cap and reduce CO2 emissions from the

transportation sector, and to invest proceeds from the program in measures designed to further

reduce CO2 emissions, provide incentives for low-carbon and more resilient transportation, and

otherwise further the goals of the TCI program.

     23-95-3. Rhode Island transportation climate initiative implementation.

     (a) The department shall promulgate regulations establishing the Rhode Island

transportation climate initiative (RITCI) to limit and reduce the CO2 emissions that result from the

combustion of fuel the regulated entities supplied in Rhode Island and to promote the purposes of

the TCI program.

     (b) The regulations shall be substantially similar to those promulgated by other

participating jurisdictions and shall allow the holders of allowances to trade them in a multi-

jurisdictional market established through the TCI program.

     (c) A regulated entity’s compliance obligation is based on the total tons of indirect CO2

emissions that result from the combustion of the quantity of fuel the regulated entity supplied in

Rhode Island during the compliance period pursuant to department regulations. The department

may require third-party verification of the accuracy of information reported by such regulated

entities.

     (d) The department may establish the number of allowances equal to the total amount of

indirect CO2 emissions allowed in Rhode Island. Regulated entities shall acquire and surrender

allowances equivalent to the tons of CO2 emissions that result from the combustion of the quantity

of fuel the regulated entity supplied in Rhode Island during the compliance period.

     (e) The department is authorized to conduct auctions and sell up to one hundred percent

(100%) of the allowances created under RITCI. The department shall hold the proceeds from the

auction of allowances in a separate, restricted receipt account, and is authorized to spend the

proceeds to support the purposes of the RITCI in accordance with § 23-95-5 and ensure that the

funds Rhode Island receives from the sale of allowances be invested in programs and initiatives to

reduce the use of fossil fuels in the transportation sector, reduce greenhouse gas emissions from the

transportation sector, and ensure equitable distribution of these benefits to those communities that

have suffered disproportionate impacts of vehicular pollution and climate change.

     (f) The department is authorized to request and obtain information from regulated entities,

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and other persons, to verify the amount of CO2 emissions the regulated entity reported to the state

and obtain such information from other Rhode Island agencies including, but not limited to, the

department of revenue and the office of energy resources, as well as agencies in other states or

jurisdictions. All information collected under this subsection may be shared with other TCI

program participating jurisdictions, provided those jurisdictions protect from public disclosure

information that would be exempt from disclosure pursuant to § 38-2-2(4)(B)

     (g) The department may work with other TCI program participating jurisdictions to create

a multi-jurisdictional organization or join an existing administrative organization to provide

technical and administrative assistance on the ongoing administration and implementation of the

TCI program and RITCI including, but not limited to, the establishment of a multi-jurisdictional

emissions and allowance tracking system, the administration of a multi-jurisdictional auction, the

monitoring of transportation fuel and allowance trading markets. The administrative organization

shall not be a joint regulatory body with regulatory and enforcement powers that are greater than

those of the state and the other participating jurisdictions.

     (h) Any violation by a regulated entity of the provisions of this chapter or the rules and

regulations promulgated by the department shall be deemed to be an air pollution violation subject

to enforcement under § 23-23-14.

     23-95-4. Transportation climate initiative special fund.

     (a) There is established the transportation climate initiative special fund (the “TCI fund”)

that shall be administered by the department in consultation with other state agencies through the

executive climate change coordinating council (EC4) established pursuant to chapter 6.2 of title 42.

Rhode Island’s proceeds from auction of the allowances shall be deposited in the TCI fund.

     (b) The proceeds shall be used, without further appropriation, to reduce CO2 emissions and

otherwise achieve the goals of the RITCI, and to fund the administration of RITCI. A minimum of

thirty-five percent (35%) of the annual proceeds from auction of allowances shall be used to benefit

overburdened and underserved communities, as defined through the processes set forth in § 23-95-

5. In keeping with the CO2 emissions reduction goals of RITCI, the proceeds may be used to

promote clean transportation and improve mobility, including, but not limited to, the following:

     (1) Projects to enhance and expand public transportation services particularly for low-

income communities, and environmental justice populations, and communities underserved by

public transportation;

     (2) Projects to accelerate the adoption of zero-emission public transportation services;

     (3) Projects to accelerate adoption of zero-emission vehicles, including battery electric

vehicles, plug-in hybrid electric vehicles and hydrogen fuel cell vehicles, particularly to make these

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vehicles more affordable and accessible for low- and moderate-income resident drivers and for

Rhode Island businesses and municipalities;

     (4) Projects that expand and increase the safety of bicycle and pedestrian transportation

and micromobility, particularly in low-income communities;

     (5) Projects that accommodate an increase in pedestrians, bicyclists and transit users;

     (6) Projects to increase the resiliency of transportation infrastructure to withstand the

impacts of climate change;

     (7) Projects that will promote density, reduce congestion, and increase the production of

affordable housing near public transit, and/or promote the use of public transportation;

     (8) Payment for costs associated with administration of TCI program;

     (9) Support for the purchase, construction, operation and maintenance of zero-emission

vehicle fueling and charging systems and supply equipment in Rhode Island;

     (10) Projects to increase the availability of broadband Internet access; and

     (11) Support for related complementary policies and programs that further the goals of

RITCI.

     (c) Up to five percent (5%) of program proceeds annually shall be available to the

department to administer the program.

     (d) Investments of auction proceeds under this chapter should comply with the

requirements of chapter 13 of title 37 and should promote fair labor standards, support local jobs

and prioritize hiring and training for workers affected by the transition to cleaner transportation,

underrepresented in the workforce, or facing employment barriers, including women, people of

color, veterans, formerly incarcerated individuals, and people with disabilities.

     (e) Monies in the TCI fund shall only be used to support the programs and activities

authorized pursuant to this section and shall not be available to meet the general obligations of the

state. Balances in the TCI fund shall be carried forward and remain in the TCI fund at the end of

each fiscal year and interest earned shall remain in the fund.

     (f) The TCI fund shall be exempt from the indirect cost recovery provisions of § 35-4-27.

     (g) The department shall submit a report annually to the governor, speaker of the house

and president of the senate delineating how the TCI fund proceeds have been administered and

verifying compliance with subsection (b) of this section.

     23-95-5. Equity and environmental justice advisory board.

     (a) There shall be an equity and environmental justice advisory board to ensure that

overburdened and underserved communities are able to provide meaningful input into decision-

making processes relating to the investment of RITCI proceeds. The department shall establish an

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equity advisory board composed of diverse stakeholder groups to include one member of each of

the state's Health Equity Zones, with a majority of the remaining members being representatives of

overburdened and underserved communities or populations, to advise on decision making and

equitable outcomes. The roles of the equity advisory board shall include:

     (1) Developing criteria for defining overburdened and underserved communities, building

on existing criteria and definitions, including, but not limited to, cumulative impacts on an affected

geographical area and the criteria set forth in chapter 6.2 of title 42, where applicable;

     (2) Providing recommendations for equitable investments of RITCI proceeds and

complementary policies that would achieve the requisite benefits for overburdened and underserved

communities and prioritize support for environmental justice areas as defined by the department;

and

     (3) Developing metrics for evaluating how investments of program proceeds demonstrably

provide direct and meaningful benefits for overburdened and underserved communities.

     23-95-6. Severability.

     If any clause, sentence, paragraph, section, or part of this chapter shall be adjudged by any

court of competent jurisdiction to be invalid, that judgment shall not affect, impair, or invalidate

the remainder of the chapter but shall be confined in its operation to the clause, sentence, paragraph,

section, or part directly involved in the controversy in which that judgment shall have been

rendered.

     SECTION 3. Section 35-4-27 of the General Laws in Chapter 35-4 entitled "State Funds"

is hereby amended to read as follows:

     35-4-27. Indirect cost recoveries on restricted receipt accounts.

     Indirect cost recoveries of ten percent (10%) of cash receipts shall be transferred from all

restricted-receipt accounts, to be recorded as general revenues in the general fund. However, there

shall be no transfer from cash receipts with restrictions received exclusively: (1) From contributions

from nonprofit charitable organizations; (2) From the assessment of indirect cost-recovery rates on

federal grant funds; or (3) Through transfers from state agencies to the department of administration

for the payment of debt service. These indirect cost recoveries shall be applied to all accounts,

unless prohibited by federal law or regulation, court order, or court settlement. The following

restricted receipt accounts shall not be subject to the provisions of this section:

     Executive Office of Health and Human Services

     Organ Transplant Fund

     HIV Care Grant Drug Rebates

     Health System Transformation Project

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     Department of Human Services

     Veterans' home -- Restricted account

     Veterans' home -- Resident benefits

     Pharmaceutical Rebates Account

     Demand Side Management Grants

     Veteran's Cemetery Memorial Fund

     Donations -- New Veterans' Home Construction

     Department of Health

     Pandemic medications and equipment account

     Miscellaneous Donations/Grants from Non-Profits

     State Loan Repayment Match

     Healthcare Information Technology

     Department of Behavioral Healthcare, Developmental Disabilities and Hospitals

     Eleanor Slater non-Medicaid third-party payor account

     Hospital Medicare Part D Receipts

     RICLAS Group Home Operations

     Commission on the Deaf and Hard of Hearing

     Emergency and public communication access account

     Department of Environmental Management

     National heritage revolving fund

     Environmental response fund II

     Underground storage tanks registration fees

     De Coppet Estate Fund

     Rhode Island Historical Preservation and Heritage Commission

     Historic preservation revolving loan fund

     Historic Preservation loan fund -- Interest revenue

     Department of Public Safety

     E-911 Uniform Emergency Telephone System

     Forfeited property -- Retained

     Forfeitures -- Federal

     Forfeited property -- Gambling

     Donation -- Polygraph and Law Enforcement Training

     Rhode Island State Firefighter's League Training Account

     Fire Academy Training Fees Account

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     Attorney General

     Forfeiture of property

     Federal forfeitures

     Attorney General multi-state account

     Forfeited property -- Gambling

     Department of Administration

     OER Reconciliation Funding

     Health Insurance Market Integrity Fund

     RI Health Benefits Exchange

     Information Technology Investment Fund

     Restore and replacement -- Insurance coverage

     Convention Center Authority rental payments

     Investment Receipts -- TANS

     OPEB System Restricted Receipt Account

     Car Rental Tax/Surcharge-Warwick Share

     Executive Office of Commerce

     Housing Resources Commission Restricted Account

     Department of Revenue

     DMV Modernization Project

     Jobs Tax Credit Redemption Fund

     Legislature

     Audit of federal assisted programs

     Department of Children, Youth and Families

     Children's Trust Accounts -- SSI

     Military Staff

     RI Military Family Relief Fund

     RI National Guard Counterdrug Program

     Treasury

     Admin. Expenses -- State Retirement System

     Retirement -- Treasury Investment Options

     Defined Contribution -- Administration - RR

     Violent Crimes Compensation -- Refunds

     Treasury Research Fellowship

     Business Regulation

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     Banking Division Reimbursement Account

     Office of the Health Insurance Commissioner Reimbursement Account

     Securities Division Reimbursement Account

     Commercial Licensing and Racing and Athletics Division Reimbursement Account

     Insurance Division Reimbursement Account

     Historic Preservation Tax Credit Account

     Judiciary

     Arbitration Fund Restricted Receipt Account

     Third-Party Grants

     RI Judiciary Technology Surcharge Account

     Department of Elementary and Secondary Education

     Statewide Student Transportation Services Account

     School for the Deaf Fee-for-Service Account

     School for the Deaf -- School Breakfast and Lunch Program

     Davies Career and Technical School Local Education Aid Account

     Davies -- National School Breakfast & Lunch Program

     School Construction Services

     Office of the Postsecondary Commissioner

     Higher Education and Industry Center

     Department of Labor and Training

     Job Development Fund

     Transportation Climate Initiative Special Fund

     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY – TRANSPORTATION EMISSIONS AND MOBILE

(TEAM) COMMUNITY ACT

***

     This act would establish the Transportation Emission and Mobile (TEAM) Community Act

intended to limit and reduce indirect carbon dioxide emissions throughout the state while promoting

the purposes of the transportation climate initiative program.

     This act would take effect upon passage.

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