Massachusetts to Get 'Pay As You Drive' Auto Insurance

To reduce greenhouse gas emissions by 25% below 1990 levels by 2020, Massachusetts hopes to tap federal funds to help enact a 'Pay As You Drive' auto insurance program to reduce transportation emissions.

"Data released by state officials on Wednesday (Dec. 29) indicate that more than one-third of the total greenhouse-gas (GHG) emissions in Massachusetts - 33 million metric tons in 2007 - come from the transportation sector. As part of the plan, Mr. Bowles (Secretary of Energy and Environmental Affairs) said, the state will start a pilot program giving drivers an incentive to cut back on unnecessary travel by linking car-insurance premiums to miles driven - a 'Pay As You Drive' program.

Congress has authorized $15 million in federal Transportation Department grants for such programs, money that could be used to ensure that lower-income drivers do not suffer an unequal burden."

The targets for the MA plan are 25% than that of California's AB 32, that call for reaching 1990 GHG emissions levels by 2020. MA will continue to engage in carbon trading for power plants through the northeast Regional Greenhouse Gas Initiative.

Full Story: Massachusetts Sets Targets to Slash Carbon Emissions

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