Advocating for change in the US
We’re aiming to be a net zero company by 2050 or sooner and to help the world get there, too
The Transportation & Climate Initiative
TCI’s Memorandum of Understanding is out now. Governors can sign on to bring this progressive climate plan to their states. Why? Because transportation is the number one source of greenhouse gas emissions in the US, according to the EPA. TCI is designed to reduce it by 20-25% across the region, all while creating jobs, boosting the economy and modernizing infrastructure
The Transportation and Climate Initiative (TCI) is a regional collaboration seeking to improve transportation, develop a clean energy economy and reduce carbon emissions across 12 East Coast states and the District of Columbia. bp is actively supporting its adoption.
Modeled after RGGI and designed by state leaders, with help from the Georgetown Climate Center, the program would create a regional cap and trade program for transportation emissions. The policy aims for a 20-25% reduction in covered emissions in the first 10 years of the program, depending on the cap.
TCI will generate revenue that can be used to bring cleaner, modernized infrastructure to the region – including funds that can focus on underserved communities.
The US needs to release fewer emissions into the atmosphere. We also need to generate new jobs and revenue at this crucial moment. TCI does both. Estimates show TCI will:
- Add jobs to the region, from high-tech roles to the construction of modernized infrastructure and more.
- Increase regional GDP – studies predict a modest growth in GDP and disposable income that will help states recover.
- Provide certainty for businesses. TCI sets out a plan that increases the cost of carbon emissions, and lowers the cap on how many are allowed, over time. That gives industries the stability needed to invest more in clean technologies – like renewable power generation, electric vehicle infrastructure, hydrogen fuels, advanced biofuels and more. And the jobs that come with them.
- Reduce emissions 4X. Transportation is the largest source of pollution in most TCI states. TCI’s primary purpose is to reduce it by at least 20% in 10 years.
bp is actively advocating for states to sign on to TCI, taking the necessary executive, legislative and regulatory steps to participate in the program once it is finalized.
And we’re not alone in our support. bp has joined with business leaders, transportation companies, environmental groups and more to bring this policy to the east coast. We’ll continue to work together to get as many states signed on as possible. Learn more about our coalition.
The Regional Greenhouse Gas Initiative
With over a decade of proven success, RGGI reduces emissions from the power sector, creates jobs and helps pave the way to a net zero carbon future
The Regional Greenhouse Gas Initiative (RGGI) is a successful cap-and-trade carbon pricing program for the power sector. Over the last decade, participating states have seen a range of benefits while emissions and electricity costs have decreased, according to the Center for Climate and Energy Solutions.
Established in 2009, RGGI limits carbon emissions from power plants1 by placing a regional cap on emissions and then requiring companies to buy or trade allowances to emit up to the limit of the cap. The cap decreases annually, so the allowance price rises every year. This system allows industry flexibility to meet reduction targets at the lowest possible cost.
Independent studies of the program show RGGI works for people, business and the planet. RGGI states also outpaced power sector emissions reductions in the rest of the country by 90 percent.*
bp publicly advocated for Virginia to join RGGI and was thrilled when the governor signed that bill into law in 2020. Now bp is actively encouraging Pennsylvania to benefit from the program along with its neighbors in:
- Connecticut
- Delaware
- Maine
- Maryland
- Massachusetts
- New Jersey
- New Hampshire
- New York
- Rhode Island
- Vermont
- Virginia
We’re also part of a coalition of businesses and environmental organizations in Pennsylvania working to bring this policy to the Keystone State. We believe it’s good for citizens, the environment and the economy.
1 Applies where generators over 25MW are required to possess credits.
* The Acadia Center: “The Regional Greenhouse Gas Initiative 10 Years in Review.” 2019.
Comprehensive clean energy legislation
Illinois Gov. JB Pritzker has laid out an ambitious agenda for comprehensive climate legislation
After two years of debate and effort, Illinois has the opportunity to pass significant clean energy legislation. Two bills – Path to 100 and the Clean Energy Jobs Act – have put forward strong ideas for climate policy. Together with the governor’s principles, these ideas will form the basis of a comprehensive bill that will help transition Illinois to a clean energy economy.
While details will be developed out of bipartisan working groups, Gov. Pritzker’s eight-part plan includes measures to implement market-based mechanisms like carbon pricing and encourage renewable energy. His principles are to:
- Strengthen Utility Company Transparency and Ethics Requirements
- Expand Consumer Affordability Protections
- Make Illinois a Renewable Energy Leader and Phase Out Dirty Power
- Implement a Market-Based Solution That Supports Clean Power and Clean Air
- Electrify and Decarbonize Illinois’s Transportation Sector
- Support Communities Transitioning to Clean Energy
- Advance Equity in the Growing Clean Energy Economy
- Enhance Energy Efficiency in Illinois
bp has gone on record applauding the governor’s principles, and we encourage legislators to explore new technologies like carbon capture, use and storage; renewable energy such as solar and wind; renewable natural gas; and private investment in electric vehicles. bp will continue to work with lawmakers to help achieve ambitious and comprehensive legislation to help Illinois reach net zero by 2050.
Washington state legislation
bp is advocating for carbon policy in the Evergreen State, home to our Cherry Point refinery
Washington is working hard to become the second state in the country with a comprehensive, economywide, market-based carbon pricing program. Well-designed policy will lower carbon emissions not only for one sector, but across the economy by:
- Catalyzing creative solutions across Washington’s economy, from startups and small businesses to some of the state’s largest employers
- Incentivizing and rewarding innovation to reduce carbon emissions
- Creating policy certainty to send clear signals for businesses
- Setting the standard for the country and creating the opportunity to link Washington’s program to those in California and Oregon
In 2019, bp supported the carbon pricing plan under consideration at the time, Senate Bill 5981. While that bill didn’t become law, it set the stage for possible passage in the 2021 legislative session.
bp is committed to being part of the solution. We will work constructively to support the carbon pricing bill the legislature develops for a program that is effective, comprehensive, sustainable and able to be enacted in 2021. Right now, we’re educating legislators on how progressive climate policies can help guide an effective transition into the energy economy of the future.
We are also working to build coalitions to demonstrate broad business support and show how well-designed policies can help Washington’s ambitions for carbon reduction and boost the economy.
We’ll keep doing our part to bring Washington state closer to net zero, starting with our own operations. And we’ll continue sharing what we’re learning to help develop policies that can shape a lower-carbon economy.
Carbon Dioxide Geologic Storage Act
Illinois House Bill 4370 would allow critical net-zero technology to flourish in the Land of Lincoln
The Carbon Dioxide Geologic Storage Act is a framework to allow carbon capture, use and storage (CCUS) projects in Illinois. CCUS is a key component to getting bp to net zero by 2050 or sooner, and to getting the world there too.
The geology of Illinois is rich in CCUS opportunities. CCUS keeps emissions from carbon-intensive industries from escaping into the atmosphere. Instead, they’re captured and either stored indefinitely, or used in manufacturing. This bill would be good for the Illinois economy and the planet.
Legislation like House Bill 4370 can create jobs and reduce emissions, and bp will continue to advocate for their passage.
