First Jurisdictions Commit to Launch Groundbreaking Program to Reduce Transportation Emissions on East Coast
New Memorandum of Understanding brings Transportation and Climate Initiative Program into focus; cap-and-invest structure to launch in 2022 for participating East coast markets
Jan. 21, 2121 (Pasadena, CA) – Over the holidays, four Northeast jurisdictions signed an historic Memorandum of Understanding to join the Transportation and Climate Initiative Program (TCI-P) cap-and-invest program beginning in 2022. The TCI-P will set a declining cap on carbon emissions generated by the transportation sectors in participating jurisdictions, and require petroleum suppliers to purchase allowances for the pollution generated by sales of their fuels in these markets.
The TCI-P will reduce transportation emissions as the cap declines each year until it is 26% lower in 2032 than in 2022. And by requiring the purchase of allowances under the cap, the first TCI-P jurisdictions will generate an average of $300 million in annual revenues that can fund vitally important clean mobility and equity priorities including: public transit improvements, purchase incentives for clean-fuel cars, trucks and buses, innovative mobility projects, and public electric charging stations.
Participating jurisdictions must dedicate a minimum of 35% of auction proceeds to benefit underserved areas that have historically been overburdened by harmful petroleum emissions. Furthermore, each jurisdiction will appoint an Equity Advisory Body to monitor equity impacts and ensure representative community participation on an ongoing basis.
Additional Northeast and Mid-Atlantic states have released a separate joint statement indicating continued engagement in TCI, which leaves the door open for additional states to join the MOU in the months ahead. If all states in the region were to join the TCI-P, annual revenues would be projected to exceed $2 billion.
“CALSTART applauds the recent announcement of a Memorandum of Understanding for the Transportation and Climate Initiative Program (TCI-P) signed by Governors Baker, Lamont, and Raimondo and Mayor Bowser and organized by the Georgetown Climate Center. This is a major milestone in the collective effort to rein in transportation sector emissions and invest in equitable climate and mobility solutions in the Northeast and Mid-Atlantic. California has shown the tremendous benefits of capping transportation emissions and investing proceeds from that market into proven clean transportation programs and systems that create good-paying jobs while cleaning the air.
Today’s announcement and the leadership shown by Massachusetts, Connecticut, Rhode Island, and the District of Columbia demonstrate that the momentum to move beyond petroleum extends beyond California and shows that these jurisdictions are ready to take up the mantle as the next big markets for clean transportation investment.
“This important state-level commitment will support the growth of the nation’s clean transportation industry, spurring the growth of high-quality manufacturing jobs,” said John Boesel, President and CEO of CALSTART.
CALSTART | Changing transportation for good
A national nonprofit consortium with offices in New York, Michigan, Colorado, and California and partners world-wide, CALSTART works with 265+ member company and agency innovators to build a prosperous, efficient, and clean high-tech transportation industry.