Eastern States Introduce a Plan to Cap Tailpipe Pollution

A coalition of mid-Atlantic and Northeastern states and the District of Columbia on Tuesday released a draft plan for an ambitious cap-and-trade program to curb tailpipe emissions from cars, trucks and other forms of transportation, tackling what has fast become the largest source of planet-warming gases.

More than a fifth of the United States population would be affected by the plan, which sets a cap, to be lowered over time, on the total amount of carbon dioxide that can be released from vehicles that use transportation fuels, like gasoline and diesel fuel.

Under the program, which could start as early as 2022, fuel companies would buy allowances from the states, either directly or on a secondary market, for every ton of carbon dioxide their fuel will produce. The states then put the proceeds toward efforts to reduce carbon emissions from transportation, including investment in trains, buses, and electric-vehicle charging infrastructure.

The program must go through a period of public comment, with details subject to change, before individual states decide whether to implement it. One state that had been considering joining the effort, New Hampshire, has already pulled out of the effort, with Gov. Chris Sununu posting on twitter Tuesday that his state “would not force Granite Staters to pay more for their gas just to subsidize other states’ crumbling infrastructure.”

The effort, if it passes, is likely to add to prices at the pump as fuel producers pass on the added costs to consumers, a big point of contention that is likely to arise as individual states debate whether to commit to a final version of the plan.

The plan’s backers say that the climate benefits of the program — as well as the health benefits that will come from a reduction in tailpipe pollution, and the jobs and improved infrastructure that fresh investment will bring — more than outweigh those costs. The most ambitious version of the plan would lower the region’s tailpipe emissions by 25 percent in 2032, compared to 2022 levels.