The "Economic and Climate Resilience Act of 2025" aims to enhance Rhode Island's economy and climate resilience through the implementation of a carbon pricing mechanism and the establishment of the Economic and Climate Resilience Fund. This fund will support climate resilience, renewable energy, energy efficiency, and climate adaptation programs, particularly benefiting low-income residents and small businesses.

The legislation introduces a carbon fee starting at $15 per metric ton of carbon dioxide equivalent (CO2e) released by burning fossil fuels, which will increase by $5 annually until it reaches $50 per ton, with subsequent adjustments for inflation. The fee will be collected on all non-exempt fossil fuels at the point of sale within the state for consumption or distribution. Electricity suppliers and natural gas distribution companies will be responsible for paying this fee on behalf of their customers, with specific calculations outlined for determining the fee based on the electricity fuel mix and natural gas usage.

The Economic and Climate Resilience Fund will be funded by the collected fees, with proceeds allocated as follows: 28% for climate resilience and renewable energy initiatives, 30% for direct dividends to employers, 40% for direct dividends to residents, and up to 2% for administrative costs. The dividends will be distributed to residents and employers, with provisions to ensure that low-income residents receive additional support.

The act also establishes an independent oversight board to monitor the fund's management and ensure accountability. Exemptions from the fees are provided for certain public transportation entities, and the act includes provisions for reducing fees based on federal carbon pricing. The act will take effect on July 1, 2026, contingent upon the enactment of a carbon fee of at least $5 per metric ton by Rhode Island and at least two other states in the Regional Greenhouse Gas Initiative (RGGI).