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Interstate cap-and-trade deal all but dead after every committed state backs out
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A decade-old interstate carbon tax concept may be as good as dead now as governors from Connecticut, Massachusetts and Rhode Island withdrew, leaving no states fully committed.
The apparent collapse of the Transportation and Climate Initiative comes less than one year after then-Rhode Island Gov. Gina M. Raimondo, Massachusetts Gov. Charlie Baker and Connecticut Gov. Ned Lamont joined D.C. Mayor Muriel Bowser in signing a memorandum of understanding in December to implement a requirement for vehicle fuel suppliers in participating jurisdictions to buy energy allowances for carbon emissions. Under the agreement, the volume of allowances for sale would decrease each year, meaning fuel suppliers would pay more each year for emissions. In theory, this would generate revenue for states to spend on public transportation, zero-emission buses and electric vehicle charging stations.
Now, only the District of Columbia is part of the memorandum. Though officials from 10 states had expressed interest, no other states had signed on. With gas prices soaring, the risk of increasing fuel prices also became a heavy lift even for states with heavy majority Democratic legislatures.
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