On December 21, 2020, the Governors of Connecticut, Massachusetts, and Rhode Island, and the Mayor of the District of Columbia announced the multi-state Transportation and Climate Initiative Program (TCI-P). TCI-P will require large fuel suppliers to track the pollution from their gasoline and diesel sales, starting in 2022. In 2023, a market for pollution allowances will launch, decreasing in quantity over time to cut greenhouse gas pollution 26 percent from 2022 to 2032. According to the announcement from the Transportation and Climate Initiative, sales of these allowances are expected to generate at least $300 million annually, and the funds will be used “to invest in equitable, less polluting transportation options and to help energize the economy,” according to the initiative’s press release.
The Memorandum of Understanding signed by each jurisdiction also includes a commitment to dedicate at least 35 percent of total proceeds (around $100 million annually) “to ensure that overburdened and underserved communities benefit equally from clean transportation projects and programs.”
Additionally, eight other states in the region – Delaware, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and Virginia – signed an accompanying statement. These states committed to further engagement with the TCI-P states on the structure of the market, and to undertake actions in their own states to reduce transportation pollution and support disadvantaged communities.
For more information on TCI-P, statements from each Governor, and examples of potential investment projects, click here.