4. TCI cap and invest
The Transportation and Climate Initiative (TCI) is a regional collaboration of 13 Northeast and Mid-Atlantic states and the District of Columbia that seeks to improve transportation, develop the clean energy economy and reduce carbon emissions from the transportation sector. The participating jurisdictions are: Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and Virginia. TCI Next Steps 12.20.pdf
The Transportation and Climate Intiative Program (TCI-P) is a first-of-its-kind multi-jurisdictional program to reduce carbon emissions from cars, trucks, and other on-road motor vehicles, as well as increase investments in an equitable, cleaner, and more resilient transportation system. In December 2020, the governors of Massachusetts, Connecticut, and Rhode Island, and the mayor of the District of Columbia announced that theirs would be the first jurisdictions to launch this program, which puts the brakes 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 10 years for the participating jurisdictions to invest in equitable, less polluting transportation options and to help energize economic recovery. The program works by requiring large fuel suppliers to purchase "allowances for the pollution caused by the combustion of fuels they sell in participating jurisdictions." The total number of emission allowances would decline each year, resulting in auctions of these allowances to generate revenue. Each jurisdiction will invest the proceeds from allowance auctions into cleaner, more resilient transportation projects and programs to further reduce emissions and provide communities, workers, and businesses with equitable, clean, safe, and affordable low-carbon transportation choices. TCI-P also includes specific commitments and features designed to ensure that the program is implemented equitably, including that at least 35 percent of the program proceeds are invested for the benefit of communities that are overburdened by pollution and underserved the the current transportation system.
In an accompanying statement, eight other Northeast, mid-Atlantic, and Southeast states, including New Jersey, signaled that they will continue to work with Massachusetts, Connecticut, Rhode Island, and the District of Columbia on developing the details of the regional program while pursuing state specific initiative to reduce emissions and provide clean transportation solutions.