The Transportation and Climate Initiative is a collaboration of the transportation, energy and environment agencies from 12 Northeast and Mid-Atlantic states and Washington, DC, focused on reducing greenhouse gas emissions from the transportation sectors. TCI states launched the Northeast Electric Vehicle Network to coordinate state action and facilitate a comprehensive and seamless regional network of EV charging infrastructure.
Through working groups focused on regional priorities, such as clean vehicles and fuels, several TCI states are exploring potential regional policies to improve transportation systems and reduce pollution. A cap-and-trade program for carbon dioxide emissions from transportation, with allowance auction proceeds used for investment, is being actively discussed as a likely outcome. A draft MOU was released in December 2019 discussing this proposal. The TCI is directed by state and district agencies located within the 13 TCI jurisdictions. The initiative is facilitated by the Georgetown Climate Center.
A 2020 issue brief from Resources for the Future found that the success of the Transportation Climate Initiative may depend heavily on stabilizing proceeds from its future cap-and-trade auctions. The authors found that this can be achieved by tethering the supply of emissions allowances to the price in the allowance auction.
In December 2020, Massachusetts, Connecticut, Rhode Island, and the District of Columbia announced that they will be the first jurisdictions to launch the Transportation & Climate Initiative Program (TCI-P). On March 1, TCI state agency staff shared updates on the TCI-P, including a Draft Model Rule and proposed processes for public engagement.
The proposed Model Rule describes a cap-and-trade program for transportation emissions. Suppliers of gasoline and on-road diesel fuel must purchase allowances at auction to cover the emissions associated with the fuel they sell over a 3-year compliance period. The Model Rule provides for each participating jurisdiction’s annual allowance budgets beginning in 2023 and continuing through 2032. The annual allowance budgets decline to achieve a 30% reduction by 2032. The model rule also includes equity provisions soliciting advice from and making investments in underserved and overburdened communities.