Rhode Island joined the Transportation and Climate Initiative in December 2020 and withdrew less than a year later, on November 20, 2021, after Connecticut and Massachusetts pulled out and left the regional pact without the three jurisdictions it needed to launch. The state’s climate strategy now runs through the 2021 Act on Climate, which sets legally binding emission-reduction targets, and through the DRIVE EV and PowerUpRI rebate programs for drivers switching to electric vehicles.
Why Rhode Island Pulled Out
The collapse happened fast. In November 2021, Connecticut Governor Ned Lamont announced his state would no longer pursue TCI, and Massachusetts Governor Charlie Baker followed within a day. Governor Dan McKee withdrew Rhode Island on November 20, 2021. State officials pointed to a provision in the memorandum of understanding requiring at least three participating jurisdictions to move forward; with Connecticut and Massachusetts gone, that threshold could not be met.
Fuel prices were climbing at the time, and critics argued that requiring fuel suppliers to buy carbon allowances would push gas prices higher for Rhode Island drivers. With no regional framework left and no appetite for going it alone, the state shifted entirely to domestic legislation.
What TCI Would Have Done
TCI was designed as a regional cap-and-invest program targeting carbon dioxide from transportation fuels. Gasoline and on-road diesel suppliers would have been required to buy allowances covering the emissions produced by the fuel they sold.1Transportation and Climate Initiative. Cap-and-Invest 101 A regional cap would have declined each year, and auction revenue was supposed to flow into state-managed funds for public transit, EV charging infrastructure, and other low-carbon projects.2Connecticut Department of Energy and Environmental Protection. Transportation and Climate Initiative Program FAQs None of that infrastructure came online in Rhode Island.
The 2021 Act on Climate Replaced It
Rhode Island’s climate obligations now come from the Act on Climate, codified at Rhode Island General Laws Chapter 42-6.2. Unlike TCI, which was a voluntary regional compact, the Act on Climate is state law with mandatory targets measured against 1990 baselines:3Rhode Island General Assembly. Rhode Island Code 42-6.2-9 – Statewide Greenhouse Gas Emission Reduction Mandate
- By 2030: 45% below 1990 levels
- By 2040: 80% below 1990 levels
- By 2050: net-zero emissions
The statute declares that addressing climate change falls within the powers and obligations of every state department, and each agency has authority to write regulations needed to meet the mandates.4Rhode Island General Assembly. Rhode Island Code 42-6.2-8 – Powers and Duties of State Agencies Where TCI depended on regional cooperation, state agencies can now act on their own.
Enforcement Became Available in 2026
The Act’s enforcement provision went live in 2026. Any Rhode Island resident, corporation, nonprofit, or the attorney general can file a civil action in Superior Court to compel compliance with the emission mandates or the required climate plans.5Rhode Island General Assembly. Rhode Island Code 42-6.2-10 – Enforcement A plaintiff must give the state 60 days’ written notice before filing. If the state takes substantive corrective action during that window, the court won’t award costs or fees against it.
Claims tied to a specific milestone can’t be filed until the year after the deadline passes: 2030-target claims can’t be brought before 2031, and the 2040 and 2050 claims follow the same pattern.6Rhode Island General Assembly. Rhode Island Code 42-6.2-2 – Purpose of the Council Broader enforcement actions challenging the adequacy of climate plans or the state’s overall progress are available now. Courts can issue injunctions, declaratory judgments, or writs of mandamus, and prevailing parties can recover attorney and expert witness fees.
DRIVE EV Rebates for Buyers
The most direct replacement for TCI’s promised consumer benefits is the DRIVE EV rebate program, run through the Office of Energy Resources and the Rhode Island Infrastructure Bank. As of January 5, 2026, rebate amounts are:7Rhode Island Office of Energy Resources. DRIVE EV
- New battery electric or fuel cell vehicles: up to $3,000
- New plug-in hybrids: up to $2,000
- Used battery electric or fuel cell vehicles: up to $2,500
- Used plug-in hybrids: up to $1,750
New vehicles must have an agreed-upon value at or below $75,000, and used vehicles at or below $55,000, excluding taxes, registration fees, delivery charges, and incentive reductions.7Rhode Island Office of Energy Resources. DRIVE EV Used vehicles must come from a licensed Rhode Island dealership.
Income-qualified buyers can receive an additional $1,500 through the DRIVE+ track on top of the base rebate. Qualification runs through either documented participation in a state or federal income-qualified program or a self-attestation of income.8Rhode Island Office of Energy Resources. DRIVE EV Project Information A lower-income buyer purchasing a new battery electric vehicle could combine the two for up to $4,500.
Applications must be submitted within 120 days of the vehicle purchase or lease date. You’ll need a copy of the Rhode Island vehicle registration, the final sales or lease agreement, and proof of residency such as a Rhode Island driver’s license.9Rhode Island Office of Energy Resources. DRIVE EV Terms and Conditions Miss the 120-day window and reserved funds return to the general pool.
Home Charger Rebates Through PowerUpRI
Rhode Island also runs a residential charger rebate through PowerUpRI. For a Level 2 home charger that doesn’t require an electrical upgrade, the program covers up to $800 or 100% of the charger’s purchase price, whichever is less. If an electrical upgrade is needed, the rebate covers up to $1,000 or 50% of installation costs.10Rhode Island Office of Energy Resources. PowerUpRI
Income-qualified applicants get up to $1,500 or 75% of installation, whichever is less. The charger has to be Level 2 (240-volt), Energy Star or UL certified, purchased new, and installed by a licensed electrician. You have 180 days from the electrician’s service receipt to apply, and the limit is one rebate per household for the life of the program.10Rhode Island Office of Energy Resources. PowerUpRI
A separate federal tax credit for home charger installation remains available through June 30, 2026. Under Internal Revenue Code Section 30C, individuals can claim 30% of the cost of a home charging station, up to $1,000 per charging port.11Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit This stacks with PowerUpRI, but the June 2026 deadline is firm.
Federal EV Tax Credits Have Expired
If you’re planning around a federal EV tax credit on top of the state rebate, the credits are no longer available. Both the New Clean Vehicle Credit under Section 30D and the Previously-Owned Clean Vehicle Credit ceased to apply for vehicles acquired after September 30, 2025.12Internal Revenue Service. Clean Vehicle Tax Credits The DRIVE EV rebate is effectively the primary financial incentive for Rhode Island buyers now. If you purchased or leased before the federal cutoff, you may still be able to claim the credit on your 2025 tax return.