The "Economic and Climate Resilience Act of 2025" aims to bolster Rhode Island's economy while addressing climate change through a comprehensive framework that includes a carbon pricing mechanism and the establishment of the Rhode Island Economic and Climate Resilience Fund. The bill introduces a fee on fossil fuels, starting at $15 per metric ton of CO2e, which will increase annually until it reaches $50 per ton, with adjustments for inflation thereafter. This fee will be collected at the point of sale for petroleum products and electricity suppliers based on their customers' usage. The legislation also amends Title 23 of the General Laws by adding Chapter 82.1, which includes definitions for key terms and outlines the objectives of the act, reflecting Rhode Island's commitment to the Paris Climate Agreement and the need for immediate action to mitigate climate change impacts, particularly on vulnerable communities.

The Economic and Climate Resilience Fund will allocate collected fees to support climate resilience initiatives, renewable energy projects, and provide dividends to residents and employers. The bill specifies that 28% of the fund will be directed towards climate resilience and renewable energy, with a focus on municipalities with low median incomes, while 30% will provide dividends to employers and 40% to residents. The legislation also establishes an oversight board to manage the fund, ensuring equitable distribution of resources and compliance with the new regulations. Notably, the bill includes provisions for exemptions for public transportation agencies and mandates that federal carbon pricing fees be deducted from state-imposed fees. The act is set to take effect on July 1, 2026, following the implementation of a carbon fee by Rhode Island and at least two other states in the Regional Greenhouse Gas Initiative.