Massachusetts, Connecticut, Rhode Island, D.C. Are First to Launch Groundbreaking Program to Cut Transportation Pollution, Invest in Communities

December 21, 2020

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(Transportation and Climate Initiative of the Northeast and Mid-Atlantic States) TCI-P will invest $300 million every year to modernize transportation, improve public health and combat climate change -- The governors of Massachusetts, Connecticut, and Rhode Island, and the mayor of the District of Columbia announced today that theirs will be the first jurisdictions to launch a groundbreaking multi-state program that puts a brake on pollution while investing $300 million per year in cleaner transportation choices and healthier communities. The bipartisan Transportation and Climate Initiative Program (TCI-P) will cut greenhouse gas pollution from motor vehicles in the region by an estimated 26% from 2022 to 2032, generate a total of more than $3 billion dollars over ten years for the participating jurisdictions to invest in equitable, less polluting transportation options and to help energize economic recovery.

In an accompanying statement, eight other Northeast, Mid-Atlantic, and Southeast states signaled that they will continue to work with Massachusetts, Connecticut, Rhode Island, and the District of Columbia on the development of the details of the regional program while pursuing state specific initiatives to reduce emissions and provide clean transportation solutions. As part of the Transportation and Climate Initiative (TCI), Delaware, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and Virginia have participated actively in developing the TCI-P and have the opportunity to join the program in the future. If all of the TCI jurisdictions eventually choose to implement the TCI-P, total proceeds available for investment could exceed $2 billion annually.

The TCI-P will work by requiring large gasoline and diesel fuel suppliers to purchase “allowances” for the pollution caused by the combustion of fuels they sell in participating jurisdictions. Auctioning those allowances would generate $300 million every year among the jurisdictions for investments in equitable, less polluting, and more resilient transportation. The total number of emission allowances would decline each year, resulting in less transportation pollution. Jurisdictions will independently decide how to invest program proceeds.

The Memorandum of Understanding signed today by Massachusetts, Connecticut, Rhode Island, and the District of Columbia also includes a commitment to dedicate a minimum of 35% of each jurisdiction’s proceeds — nearly $100 million each year in the inaugural jurisdictions combined — to ensure that communities underserved by the transportation system and overburdened by pollution will benefit equitably from clean transportation projects and programs. To make sure those investments deliver on the equity and environmental justice goals of the program, each jurisdiction will designate an advisory body to identify underserved and overburdened communities, provide guidance for investments, and define goals and metrics for measuring progress. A majority of the members of each advisory body will be people from or representing underserved and overburdened communities.

Each Signatory Jurisdiction will work with communities and with its Equity Advisory Body to assess the equity impacts of the program on an ongoing basis, including by monitoring air quality in communities overburdened by air pollution to ensure the effectiveness of policies and investments, and will ensure transparency by annually reviewing and reporting on program progress. The jurisdictions also commit to continue to work individually and together on additional policies that reduce pollution from transportation and advance shared goals of equity and environmental justice.

This announcement comes at a time when the impacts of climate change are being felt across the country and region. Transportation accounts for nearly 40% of greenhouse gas emissions in the Northeast and Mid-Atlantic region. Exposure to air pollution exacerbates lung and heart ailments, causes asthma attacks, and increases the risk of a stroke and other serious health conditions. Prolonged exposure to air pollution may make it more difficult to recover from diseases like COVID-19, according to a recent Harvard School of Public Health report.

TCI-P is projected to have significant public health benefits. If all TCI jurisdictions choose to implement the program, according to a recent Harvard Public Health study, the estimated health benefits could include up to 300 deaths avoided each year and hundreds of childhood asthma cases avoided each year by 2032. Health benefits would exceed the cost of the program — TCI jurisdictions would see up to $3 billion worth of annual public health and safety benefits in 2032 if all jurisdictions implement the TCI-P.

Each jurisdiction implementing TCI-P will determine how to best invest program proceeds depending on their unique needs and goals. Example investments may include:

Improving the reliability of public transit;
Repairing existing roads and bridges and making transportation infrastructure more resilient to climate change;
Expanding high speed internet for rural and low-income communities;
Electrifying school buses and transit buses;
Providing bus rapid transit and developing new bus routes in suburban and rural communities;
Reducing air pollution by electrifying ports and freight facilities;
Expanding safe bike lanes, walking trails, and sidewalks;
Providing consumer rebates for electric and low-emission vehicles;
Developing interstate electric vehicle charging corridors; and
Offering incentives for continued telecommuting to reduce congestion.

Today’s TCI-P Memorandum of Understanding grew out of the Transportation and Climate Initiative, and was informed by extensive outreach and input from thousands of people, businesses, and organizations.

The Transportation and Climate Initiative (TCI) is an ongoing multi-jurisdictional collaboration of Northeast and Mid-Atlantic, and Southeastern states and the District of Columbia that seeks to improve transportation, develop the clean energy economy and reduce carbon emissions from the transportation sector. Collaborating TCI jurisdictions include Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and Virginia.

Participating Jurisdiction Statements on TCI-P:

“As a Commonwealth, we have an obligation to address climate change head on and a challenge this great requires action across our region and nation. That’s why I am proud to join Governor Lamont, Governor Raimondo and Mayor Bowser to launch this trailblazing program to reduce greenhouse gas emissions while building the clean, resilient transportation system of the future," said Massachusetts Governor Charlie Baker. “By partnering with our neighbor states with which we share tightly connected economies and transportation systems, we can make a more significant impact on climate change while creating jobs and growing the economy as a result. Several other Transportation and Climate Initiative states are also committing to this effort today and we look forward to these partners moving ahead with us as we build out this first in the nation program.”

“Engaging in this way with my fellow governors and Mayor Bowser accomplishes goals we have set for Connecticut for years,” said Connecticut Gov. Ned Lamont. “Participating in the TCI-P will help grow our economy through a fresh injection of capital to provide for jobs and new infrastructure. This collaboration will cut our greenhouse gas emissions, and it will make our urban centers healthier, after decades of being adversely impacted by the emissions being released by traffic every day. Connecticut has always taken pride in our leadership role when it comes to climate, and when we can combine that with a stronger economy, fast transit systems, and regional cooperation, that’s a win for all of us.”

“Joining the Transportation and Climate Initiative is an investment in Rhode Islanders,” said Rhode Island Governor Gina M. Raimondo. “This first-of-its-kind program will provide $20 million annually for public transit, safe streets for bikers and pedestrians, and other green projects. Most importantly, it will provide much-needed relief for the urban communities who suffer lifelong health problems as a result of dirty air. I look forward to working with the Rhode Island General Assembly to launch this program and protect the health of Rhode Islanders.”

“By working together across our borders at the state level, we can take on the greatest challenges posed by climate change,” said District of Columbia Mayor Muriel Bowser. “Through this multi-jurisdictional commitment, we will cut pollution, improve health outcomes, and deliver much-needed investments for our most vulnerable communities. This landmark initiative continues our vision to make District the healthiest, greenest, and most livable city for all of our residents.” READ MORE

RI, MA, CT, and DC launch regional program to cut transportation pollution, reinvest in cleaner transit and modern infrastructure (What's Up Newp)

Connecticut, Massachusetts, Rhode Island, and District of Columbia Commit To Historic Program To Reduce Climate Pollution, Invest in Transportation -- Program Will Invest $1 Billion in Connecticut by 2032, 35% To Benefit Overburdened and Underserved Communities (Office of Connecticut Governor Ned Lamont)

Massachusetts, New England States, and D.C. Commit to Groundbreaking Regional Program to Reduce Pollution, Invest in Clean Transportation -- All Transportation and Climate Initiative States Remain Active in Program, Commit to Continued Collaboration (Office of Governor Charlie Baker and Lt. Governor Karyn Polito)

Press Release: Mayor Bowser Announces DC Joins Landmark Pact to Cut Transportation Pollution, Increase Equity (Executive Office of the Mayor, DC Office of Energy and Environment, and the District Department of Transportation)

TCI MOMENT OF TRUTH: (Politico's Morning Energy)

Northeast states to unveil cap‑and‑invest plan for cars (E&E News)

STATE OF PLAY (Politico's Morning Energy)

Massachusetts to Ban Sale of New Gas-Powered Cars by 2035 (Car and Driver)

Pennsylvania Wants More EVs on the Road: Governor Wolf seeks to require automakers to offer more eco-friendly vehicles for sale. (NACS)

Excerpt from Politico's Morning Energy: TCI MOMENT OF TRUTH:A sweeping regional cap-and-trade program for emissions from car and truck fuels will likely miss out on having two of the largest states in the Northeast sign on to a draft agreement expected today. Six sources familiar with the talks don't expect New York or New Jersey to be among the signatories to a draft memorandum of understanding for the Transportation and Climate Initiative. The two states — and others that don't sign on — will likely continue to engage in discussions, but it's a blow to a policy heralded by supporters as an opportunity to begin ratcheting down the largest source of emissions in the region while raising revenue to fund electric vehicles, mass transit and other clean transportation alternatives. "While this is a regional approach, each state needs to do what they feel is right, but even the fact that a few states are going in shows this policy has potential and each state needs to figure out how it works for them," said Robert Freudenberg, vice president of energy and environment at the Regional Plan Association.

The proposal faced opposition from environmental justice groups who were skeptical of a market-based policy without clear guarantees of reduced pollution in the communities where truck depots and distribution hubs exacerbate illnesses linked to poor air quality. New York could consider joining TCI in line with recommendations from the state's Climate Action Council, which won't move forward with a scoping plan for another year. In New Jersey, the Department of Environmental Protection and Department of Transportation are set to brief stakeholders today on a clean transportation plan, the details of which are sparse. The DEP apparently told stakeholders that "they don't think anyone’s going to be disappointed on Monday," said a source familiar with conversations. "There's no way everyone's going to be happy on Monday." READ MORE

Excerpt from E&E News: Charlie Baker (R) has championed TCI, as part of the state's efforts to meet its legally binding emissions targets.

Baker created a stir last month when he told reporters the state might need to revisit the assumptions behind the program following a drop in driving due to the coronavirus pandemic. But Kathleen Theoharides, the state's environmental secretary and TCI chair, reaffirmed Massachusetts' commitment a short time later, saying she expected states to sign a memorandum of understanding by the close of the year.

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Connecticut Gov. Ned Lamont, a Democrat, told WNPR last year that raising gas taxes was "probably not the way to go."

But he more recently signaled some openness to the idea.

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The program has been controversial. It's drawn the ire of fuel suppliers, which say it amounts to a gas tax. A recent Tufts University study found the program could increase prices at the pump by 24 cents a gallon in 2022. It has also attracted criticism from environmental justice groups, which have attacked it for not dedicating funding to disadvantaged communities (Climatewire, Oct. 20).

Advocates of the program say states have committed to spending 35% of revenues on underserved communities and contend it would have significant health benefits. They also point to an analysis released by the states that found the program could increase the cost of gasoline by 5-17 cents per gallon in 2022, not 24 cents as estimated by Tufts. READ MORE

Excerpt from Politico's Morning Energy: Only three states and the District of Columbia signed a regional cap-and-trade plan for emissions from car and truck fuels, in a blow to policy advocates who hoped it would spur investments in electrification and mass transit.

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Three states and D.C. signed onto a regional cap-and-trade plan Monday for emissions from car and truck fuels — aiming to cut carbon pollution from the highest-emitting sector of the U.S. economy. The program, known as the Transportation and Climate Initiative, has been developing a framework to limit emissions from gas and diesel vehicles sold in 11 Northeast and mid-Atlantic states, plus D.C., for years. The governors of Massachusetts, Connecticut, Rhode Island and the mayor of D.C. signed a final memorandum of understanding to participate in the program, which would reduce transportation emissions 26 percent by 2032.

But Monday's announcement also showed a lack of firm support from other states — including New York, which is the largest economy in the region, Pro's Marie J. French and Samantha Maldonado report, highlighting the political challenges of a regional policy as states individually pursue their own emissions reduction goals.

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Officials from the states that signed on expressed confidence that more states would join the program. New York, Pennsylvania, New Jersey, Virginia, Maryland, Delaware and Vermont, which have been engaged in discussions, were expected to sign onto an accompanying statement to continue developing details of the program. North Carolina has also joined the talks — bringing representation from a new region for the first time.

The proposal faced staunch opposition from environmental justice advocates skeptical of a market-based approach that didn't guarantee aggressive reductions in communities they represent, and the prospect of raising gas prices led some governors to be wary of the program, including New Hampshire Gov. Chris Sununu and Maine Gov. Janet Mills. Those two states did not sign onto the supportive statement to continue discussions.

Related: The New Jersey Department of Environmental Protection on Monday outlined a series of mandatory emissions reduction rules it will propose to target mobile and stationary sources. READ MORE