Frequently Asked Questions: Transportation & Climate Initiative Program

Updated March 30, 2021

What is TCI-P?   

What are the goals of TCI-P?  

The goals of TCI-P include:

• Reducing carbon emissions from the transportation sector;
• Improving air quality and public health, increasing resilience to the impacts of climate change, and providing more affordable access to clean transportation choices;
• Promoting local economic opportunity and creating high quality jobs;
• Maximizing the efficiency of the program to ensure greater benefits; and
• Advancing equity for communities overburdened by air pollution and underserved by the transportation system.

How will TCI-P reduce emissions?  

How is the TCI-P advancing goals of equity and environmental justice?  

The connections between climate change, public health, equity, and justice are more urgent today than they have ever been. The TCI-P MOU released in December 2020 included several commitments, informed by extensive input and conversations with community members and other stakeholders, intended to advance equity for communities overburdened by air pollution and underserved by the transportation system.  These commitments include:

• Signatory jurisdictions have committed to invest at least 35% of proceeds— nearly $100 million in the first year of the program — to ensure that communities overburdened by pollution and underserved by the transportation system benefit equitably from clean transportation projects.
• Participating jurisdictions will each designate an advisory body with diverse representation to identify underserved and overburdened communities, provide guidance for investments, and define goals and metrics for measuring progress and effectiveness.
• Jurisdictions will ensure transparency by annually reviewing and reporting on program progress and will work with communities and with its Equity Advisory Body to assess the equity impacts of the program on an ongoing basis. This will include monitoring air quality in communities overburdened by air pollution to ensure the effectiveness of carbon reduction policies, strategies, and investments.
• Jurisdictions will also continue to work individually — and together — on the many policies needed to reduce pollution from transportation sources and advance shared goals of equity and environmental justice. 

On March 1, 2021, TCI jurisdictions invited further public input on proposed processes for public engagement to ensure that equity, environmental, climate, and transportation justice considerations are at the center of TCI-P program development and implementation. Individuals and organizations are encouraged to provide input and feedback on TCI-P's “Update on Public Engagement Planning,” through the online TCI-P Public Input Portal.

What role does the Model Rule play in the TCI Program (TCI-P)? 

While TCI-P is a regional program, each state and D.C. will implement the program through their own regulations. TCI-P is composed of several components, starting with a binding cap on pollution from gasoline and diesel fuel used for transportation. The Model Rule is the template each state will use to establish regulations that create the systems and requirements that will hold large gasoline and on-road diesel fuel suppliers accountable for the pollution created by the fuel they sell. The draft model rule also reiterates the equity commitments made in the TCI-P Memorandum of Understanding (MOU).

How will TCI jurisdictions implement their equity commitments? 

There are several steps that participating jurisdictions will take to implement the equity commitments made in the MOU, and each step presents opportunities for public input and engagement. 

Each jurisdiction may pursue a combination of legislation, executive action, and other policy actions to follow through on their MOU commitments to invest in underserved and overburdened communities, further reduce pollution and improve health, ensure meaningful engagement and equitable processes, and monitor and evaluate the program’s effectiveness. 

Throughout the process, each jurisdiction will collaborate with stakeholders and the public to inform the implementation of the equity commitments. Examples include establishing, supporting and working with Equity Advisory Bodies, identifying overburdened and underserved communities, setting up local air quality monitoring, developing investment priorities, and further advancing these commitments through additional, complementary policies.

How can members of the public participate in the TCI-P process? 

A transparent, inclusive, and equitable process is critical to the success of TCI-P. A commitment to robust public engagement and equitable processes is a specific focus of the MOU. All interested people and organizations are invited to provide input throughout the process of developing and implementing the TCI-P.  All are encouraged to use the online TCI-P Public Input Portal to ensure your input is available to all participating jurisdictions. Multiple opportunities for participation will also be available both at the regional level and in individual jurisdictions on an ongoing basis. 

How do I submit my comments? 

Interested people and organizations are encouraged to share their thoughts and feedback through the TCI-P Public Input Portal. 

You can also find more information about how to contact individual TCI jurisdictions directly by clicking here.

What is the deadline for providing my comments? 

Comments on the specific fuel-supplier regulations and other provisions in the draft model rule are most helpful if received by May 7, 2021.

What does it mean for a community to be “overburdened” or “underserved”?

One of the stated goals in the TCI-P Memorandum of Understanding is to “advance equity for communities overburdened by pollution and underserved by the transportation system.”  Each MOU signatory jurisdiction has committed to work with its respective Equity Advisory Body and the public to develop criteria for identifying overburdened and underserved communities.

Each participating jurisdiction will independently decide how to invest program proceeds in consultation with their residents and other policymakers. Each jurisdiction will be working with communities, workers, businesses and other interested stakeholders to make sure those investments deliver what people need, but examples could include:

• improving and expanding public transportation; 
• zero-emission buses, ride-shares, cars, and trucks; 
• electric vehicle charging infrastructure; development of interstate electric vehicle corridors;  
• improving high speed wireless internet in rural and low-income areas to allow for teleworking; 
• repairing existing roads and bridges; and 
• providing safer bike lanes and sidewalks.

These are just examples, and the decisions about the specifics will be part of ongoing conversations and participation among each jurisdiction’s agencies, the public and the legislatures to make sure they are meeting the needs of communities and achieving the goals of the program. 

Investments that could particularly benefit rural and Tribal communities include expanded broadband access to allow for telecommuting, telehealth, and job growth, as well as greater transportation options through vanpool, bus, and rail access.  Based on the modeling conducted by TCI, all counties in the region are projected to benefit from the program.  Furthermore, related analysis by the Harvard-led TRECH Project concluded that the public safety and health improvements that could come from TCI-P would be region-wide, reaching every community. 

While each jurisdiction will decide how investments from the program will be spent, programs that benefit rural, Tribal, and other underserved communities could include: 

• Investments in resiliency, particularly given that rural areas are often hit hardest by  severe weather, flooding, and power outages.
• Cost savings by helping people move into more efficient, lower-emitting cars and trucks through incentives, rebates, and other financial support. 
• Expanding broadband internet access, which enables online school, telecommuting, telehealth, and job growth.
• Greater transportation options through investments in vanpool, carshare, bus, and rail access.
• Town center development, which creates more jobs closer to where people live and has been shown to reduce commuting time and carbon emissions. 

Participating jurisdictions are confident rural, Tribal, and other underserved communities will benefit significantly from this program, and look forward to continued conversations with residents and leaders about what they see as the priorities in their communities.

What are the benefits of starting this program now?  

Taking smart steps to cut the pollution that causes climate change cannot wait. The transportation sector accounts for over 40% of carbon dioxide pollution in the TCI region. Climate change imposes an increasingly serious burden on communities across the Northeast, Mid-Atlantic and Southeast regions and action to reduce emissions is needed now in order to avoid the most disastrous effects. Exposure to air pollution exacerbates lung and heart ailments, causes asthma attacks and increases the risk of a stroke and other serious health conditions. According to a recent Harvard School of Public Health report, exposure to fine particle pollution increases the rate of death from COVID-19. Underserved and overburdened communities experience disproportionately high levels of pollution, increasing vulnerability to health risks. Cutting air pollution and investing in a cleaner transportation system will result in healthier communities. 

Investing in a cleaner, modern and innovative transportation system will also have a positive impact on local economies as the Northeast, Mid-Atlantic and Southeast regions recover from the COVID-19 pandemic. These investments will create thousands of jobs, boost economic activity and support transit and transportation solutions that will fuel future economic expansion. 

What jurisdictions are participating?   

Massachusetts, Connecticut, Rhode Island, and the District of Columbia announced on December 21, 2020 that they will be the first jurisdictions to launch the TCI-P.

In an accompanying statement, eight other Northeast, Mid-Atlantic, and Southeast states and the District of Columbia announced that they will continue to work with the initial four TCI-P jurisdictions on the development of the details of the program. Delaware, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and Virginia are participating actively in developing the program and have the opportunity to join the TCI-P at any time in the future. If all the TCI jurisdictions eventually choose to participate in TCI-P, total proceeds available for investment could exceed $2 billion annually, and the program could reduce total CO2 emissions by 5 million metric tons in 2032.

What are the benefits of multiple jurisdictions participating?  

Transportation and climate issues do not stop at state or municipal borders. Implementing an effective approach to address these issues requires multi-jurisdictional solutions that expand upon and complement individual state action. Participating jurisdictions will benefit from the proceeds from the program and will have the flexibility to invest those proceeds to help achieve transportation, equity, and climate policy priorities at the state or municipal level.  

How will the program proceeds be invested to support local communities?  

It will be up to each participating jurisdiction to independently decide how to invest program proceeds. This will allow each jurisdiction the flexibility to choose investments that most benefit their communities and unique needs. Some investments could include expanded transit services; zero-emission buses, cars, and trucks; broadband services that allow for teleworking; and safer bike lanes and sidewalks. These potential investments will reduce greenhouse gas pollution, create jobs, spur economic activity, benefit communities, and reduce harmful air pollution. 

What are the benefits of using a “cap-and-invest" approach?  

Cap-and-invest is a policy tool that has been used in the United States and around the world to reduce harmful pollution. Multi-jurisdictional and state cap-and-invest programs have effectively reduced carbon emissions and other dangerous air pollution and strengthened the clean energy sector, all while growing the overall economy and providing polluting industries flexibility to reduce emissions in a variety of ways. 

“Cap-and-invest" applies specifically to programs in which emission allowances are sold at auction, with the proceeds invested by participating jurisdictions to further reduce greenhouse gases and other air pollutants. Under TCI-P, the total number of emission allowances will decline each year, resulting in fewer overall emissions from the combustion of transportation fuels. Investments of allowance auction proceeds will further reduce vehicle emissions, advance equity, and help transform the transportation system.

What makes TCI-P different from other market-based pollution reduction programs? 

Two things make TCI-P different from other programs. First, the TCI-P cap-and-invest program is being designed and implemented with equity as a central organizing focus, including through robust public input, to ensure that the program will advance equity for communities overburdened by pollution and underserved by the transportation system. Second, TCI-P jurisdictions will not give any allowances away for free to regulated entities. Rather, proceeds from the sale of allowances will be invested in equitable, cleaner, and more resilient transportation projects. 

What fuels are covered and who is regulated under TCI-P? 

The TCI-P cap applies to the fossil fuel components of gasoline and on-road diesel fuel delivered for final sale or consumption in the TCI-P jurisdictions. Fuel suppliers are required to hold allowances for every ton of emissions that results from the combustion of transportation fuels covered by TCI-P.  Participating jurisdictions may also choose to invest in programs that cut pollution from any emissions sources.

How could TCI-P affect gasoline prices?  

If the regulated entities in the petroleum industry choose to pass the full cost of allowances on to consumers, gas prices in 2023 are projected to be $0.05 per gallon higher than they would otherwise be in the absence of TCI-P. This is similar to the difference in prices often found between two gas stations on the same street. 

TCI-P is built with multiple consumer protection safeguards, including a cost containment reserve, which adds allowances to the market if prices are higher than expected, and this limits the potential impact on prices at the pump. The “cap” in cap-and-invest programs takes advantage of market dynamics to achieve guaranteed emissions reductions at least cost for consumers and businesses, as the market finds the most cost-effective ways to reduce emissions. Participating jurisdictions will also conduct regular program reviews to evaluate the effectiveness and impacts of the program and make appropriate adjustments with public input. 

What is the relationship between TCI and the Transportation & Climate Initiative Program (TCI-P)?  

The Transportation and Climate Initiative (TCI) is a long-standing collaboration among Northeast, Mid-Atlantic, and Southeast states and the District of Columbia to reduce greenhouse gases and other air pollution, create healthier communities, and accelerate investments in cleaner transportation.  

The bipartisan Transportation and Climate Initiative Program (TCI-P) is a newly launched multi-jurisdictional cap-and-invest program that will cut carbon-dioxide pollution from on-road gasoline and diesel vehicles in the region by an estimated 26% from 2022-2032; generate hundreds of millions of dollars annually for participating jurisdictions to invest in equitable, less polluting transportation options; and help energize economic recovery.