New Hampshire sets new limits on joining carbon reduction pacts

(The Center Square) – Gov. Chris Sununu pulled the state out of a regional pact aimed at reducing tailpipe pollution last year, and legislation recently signed by the Republican will make it harder for the state to join similar climate change programs going forward.

The new law prohibits the state Department of Environmental Services from joining a “low carbon fuel standards” program “or any similar program that requires quotas, caps, or mandates on any fuels used for transportation, industrial purposes, or home heating” without approval from the state Legislature and the Governor’s Council.

New Hampshire already requires legislative approval for joining regional climate pacts under a 2012 law, but the new requirement adds another layer of approval to the process.

The bill’s primary sponsor, Rep. Jeanine Notter, R-Merrimack, argues that the move is a cost-cutting measure aimed at curbing the amount of money the state spends studying the Transportation Climate Initiative or similar programs. She said the state has spent more than $50,000 studying the TCI pact, despite the fact that Sununu has declined to join.

But Notter said she opposes the regional pact, calling it a “regressive tax” that would increase gas prices on the state’s working poor and low income families.

“TCI would raise taxes for years to come,” Notter said during a recent hearing on the bill. “However, unlike the Legislature where our constituents can hold us accountable for tax increases, TCI shifts the responsibility of raising gas taxes to an unelected and unaccountable board.”

Environmental groups strongly opposed the legislation, calling it a “gag order” that would prevent the state from pursuing programs aimed at reducing tailpipe pollution.

A majority of Democratic lawmakers voted against the measure as it worked its way through the GOP-controlled House and Senate this session.

Modeled on the Regional Greenhouse Gas Initiative, which has reduced emissions from power plants in New Hampshire and other states, TCI would create a cap-and-invest program to drive down emissions from cars and trucks, which contribute to about 40% of regional greenhouse gas emissions scientists say contribute to a warmer planet.

TCI states say the cap and trade program could reduce regional emissions by as much as 26% by 2032.

Ultimately, the agreement will lead to a new wholesale tax on fossil fuel suppliers to pay for regional transportation projects. Suppliers who transport fuel across state lines would be required to pay a tax on excess carbon emissions based on caps that still must be set. Over time, the fuel levy would increase while the emission caps would be tightened.

Supporters of the plan, including environmental groups and transit advocates, say it will help the states meet dual goals of reducing emissions and air pollution and easing traffic congestion. The goal is make it more expensive to use fossil-fuel burning vehicles, which TCI proponents argue would decrease regional emissions in the long-term.

Money generated by the program would be available to states to use on transportation projects, such as expanding public transit to reduce reliance on personal vehicles.

Critics argue the pact will hurt the region’s economy by driving up energy costs for businesses and consumers with a minimal impact on regional emissions.

Originally, there were a dozen states in the consortium, but so far only three – Massachusetts, Connecticut and Rhode Island – and Washington, D.C. have signed agreements to join the regional pact.

Sununu announced last year that the Granite State won’t be joining the pact, citing the likelihood that it would increase costs for businesses and consumers.

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