TCI Regional Policy Design Stakeholder Submissions

Where TCI came from and where it can take us

This spring, Governor Phil Scott will have the opportunity to strengthen the economy, promote equity, and protect the environment by joining the Transportation and Climate Initiative (TCI). If he refuses to join our neighbors in the fight against climate pollution, it is very likely that Vermonters will pay higher prices for fossil fuels without receiving any of TCI’s investment benefits.

HISTORY & CONTEXT

In 2008, then-Senator Scott voted to authorize Vermont’s governor to advocate for a regional carbon trading program for transportation fuels.

In the decade since, a bipartisan group of officials from Maine to Virginia have been designing a cap-and-invest program for transportation fuels modeled on the Regional Greenhouse Gas Initiative (RGGI).

RGGI was developed as a collaboration between states to reduce climate pollution from coal-fired electric plants. Gov. Jim Douglas led the RGGI negotiations and signed Vermont onto the initiative, and it’s working. In the decade since its launch, CO2 emissions from power plants in the RGGI states have fallen 90% faster than in the rest of country, while economic growth in the region has outpaced the rest of the country by 31%.

Since taking office, Gov. Scott has maintained Vermont’s seat at the TCI negotiating table. In fact, up to this point, the governor and his team have been the only Vermonters at the table. And Gov. Scott's political appointees from VTrans, the Agency of Natural Resources and the Public Service Department recently hosted public meetings on TCI in St. Johnsbury, Manchester Center, Springfield and Burlington.

The draft TCI proposal released by the region's governors late last year proposes a) limiting the flow of fossil fuels into the region, b) requiring fossil fuel companies to purchase allowances for the pollution they cause, and c) using the proceeds to modernize the region’s transportation systems. Their program outline makes clear that governors will establish the regulations for fossil fuel distributors, and then individual state legislatures will craft the investment benefits that best meet their state’s needs.

What are those benefits?

A STRONGER ECONOMY

Vermont will receive back more from TCI than Vermonters put in.

Much like hotel stays and restaurant meals, out-of-state travelers purchase a significant share of the transportation fuels sold in Vermont. The Agency of Commerce and Community Development estimates that 20-25% of transportation fuels are sold to out-of-staters.
If – as is currently contemplated – TCI funds are returned to the state in proportion to the gallons of fuel sold, for every dollar Vermonters pay in pollution allowances the state will receive as much as $1.33 for investments.

Even better, according to TCI researchers, the more aggressive the governors are at limiting fossil fuels, the more our economy will grow.

On the flip side, there is economic risk if Gov. Scott refuses to join TCI. Like RGGI, most of the facilities that will purchase allowances are located outside of Vermont and, according to Commissioner Peter Walke -- Vermont’s lead TCI negotiator, it is “possible and very likely” that these companies will pass on their compliance costs to Vermonters whether or not the state participates. So, to take advantage of TCI’s economic benefits and avoid a situation where Vermonters are paying for infrastructure improvements in other states but not here, Gov. Scott must join the program.

A CLEANER ENVIRONMENT

TCI will reduce pollution – and that will save lives and money.

The Vermont Department of Health recently analyzed what meeting the transportation goals of the Comprehensive Energy Plan would mean by 2050. The benefits include:

• 2,000 lives saved due to cleaner air and safer roads and other benefits; and
• $1.1 billion in costs avoided from reduced health care costs and increased productivity.

TCI puts us on a path to reap those benefits.

EQUITY

A critical component of TCI is that it provides resources to address inequities in Vermonters’ energy burdens.

Low-income and rural Vermonters pay a higher percentage of their incomes on transportation than their wealthier, more urban neighbors. The state can and should address some of this inequity by targeting TCI investments to benefit low-income and rural Vermonters.
Investments can take the form of infrastructure and public transit improvements: things like rural van lines that cover more territory and travel more frequently, expanded park & ride lots, EV charging, bike lanes, sidewalks, and commuter rail.

Other options are incentives, rebates, and targeted tax credits. Think free bus passes, expanding the Energy Assistance Program, tiered incentives for electric vehicles so that those with the least get the most help, or an increase in the Earned Income Tax Credit. In British Columbia, a Canadian province that has been pricing carbon pollution for more than a decade, rural citizens qualify for additional tax breaks.

TCI revenues could also be used for cash-back payments that go directly to households based on need.

Of course, policymakers could mix and match proceeds. Some could be used for infrastructure, some for incentives, and some for direct payments to low-income households.

CONCLUSION

The economic, equity, and environmental benefits of TCI far outweigh its costs. In fact, refusing to join TCI means Vermonters will likely pay its costs without receiving any of its benefits.

Gov. Scott should honor his commitments to reduce climate pollution, join TCI, and help modernize Vermont’s transportation systems.

I am very supportive of this initiative and what is being undertaken, I share the project goals and objectives. I would like to see 100% of the investment go directly into electric vehicle incentives and EV infrastructure. Growing mass transit is a very laudable objective, however it requires a very difficult public behavior change and is clearly not practical in much of NY State.

Please continue and expand the direct purchase rebate for EV's in all states, NY is currently $2,000, NJ is better, currently at $5,000, applied at vehicle acquisition.

Please use the investment funds to incentivize the build out of EV DC fast charging stations across NY. The lack of DCFC infrastructure is a significant hindrance to the rapid adoption of EVs. The convenience of charging at home is great, but we need the DCFC infrastructure to be put in place to win over the majority of drivers.

In summary, I recommend all the investment dollars be directed towards reducing acquisition cost of ZEVs and incentivizing a reliable, robust, dependable, and prolific DCFC network across NY and the entire northeastern US.

Please see attached for my full feedback.

I am a retired scientist and vice chair of the Board of Supervisors for the Hancock Co Soil & Water Conservation District. The District is involved in helping to write Ellsworth's Green Plan, and we do other environmental and climate resilience projects. I support the Transportation Climate Initiative. We need to transition as quickly as possible away from fossil fuels, and in Maine, transportation is a large part of the fossil fuel problem. We need good policy at the state level and support for public and private transitions to green energy. Most people lack the financial capacity to make this transition on our own. So government at every level, state, county, and municipal need to have their own climate plans and need to provide financial support for energy transitions.

Connecticut’s largest GHG emitter is the transportation sector. And the state has a goal to reduce GHG by 45% by 2030. Thank you for that. But we can’t do this alone.

Please formally join the Transportation and Climate Initiative (TCI), which will cap GHG emissions and place a fee on fossil fuel imports in the transportation sector (cap and trade). Fairfield County (in which I live) is in the lowest 5% of counties in the US for air quality. These GHG aren'’t all from Fairfield County emissions…air blows from other states.

Thank you for what you have done thus far, with regards climate change action and the regional design process. Now you must take action to set aggressive GHG emissions caps. I know you will get push-back, but don’t give in. The children of CT are relying on you. In fact, we all are. This is no longer a future problem. The problem is NOW. And I know you realize this.

And please keep equity at the forefront of your mind when you set into action these goals. Too often the less affluent communities are not considered. After all, Bridgeport, the largest and poorest city in CT is also in Fairfield County.

Transportation is the country’s and region’s leading source of carbon emissions so it is imperative that Pennsylvania join the Transportation Climate Initiative (TCI) to clean this sector up. Joining TCI is critical step to improving transportation and addressing the climate crisis in Pennsylvania.

If designed correctly, this program could help to create safe roads for biking and walking, more frequent and reliable public transportation, greater access to electric vehicles, and a more equitable system with cleaner transportation options for everyone in the region.

I support TCi as I believe it would encourage more people to want to live and work in Pennsylvania. We have an opportunity to take a leadership position in transportation as it relates to climate which can spur innovation and jobs.

We can cut poverty and pollution at the same time. We urge you to move forward with a regional program that prioritizes the needs of communities overburdened with pollution and underserved in mobility options.

This is a good start. Please also invest in and build infrastructure that reduces carbon emissions radically. There is no time to lose. Thank you