Transportation is the largest source of greenhouse gas (GHG)
emissions in Vermont at 43% of total emissions. Our neighboring states are facing
the same problem with transportation being the highest GHG source. So, in 2018 Vermont
joined with 12 other eastern states from Maine to Virginia and the District of
Columbia
to design a regional program called the Transportation and Climate
Initiative (TCI) to reduce GHG emissions from transportation. Details of the design were released in
December, 2019, and Vermont’s Agency of Natural Resources has invited public
comments on the proposal.
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| Photo from VT Agency of Natural Resources TCI website |
The concept behind TCI is similar to that of the Regional
Greenhouse Gas Initiative (RGGI), of which Vermont is a member along with 8
other states in the northeast. RGGI,
established in 2009, is a market-based program to cut GHG emissions from
electric generation. RGGI has been successful
in reducing region-wide emissions from 188 million tons of carbon dioxide (CO2) in 2009 to 80 million in 2019. The revenues Vermont has
received from the program have been a major reason why our electric rates have
been relatively level over that period and why we have been able to transition
most of our electric energy to renewable sources. TCI will operate in a similar
way to reduce climate-changing emissions and invest in cleaner transportation,
healthier communities, and more resilient transportation infrastructure.
All pollution reduction mechanisms have compliance costs
which are eventually paid by consumers. The TCI “cap and invest” system is
designed to drive down the price of compliance and lessen the cost to consumers
while providing a mechanism to reduce fossil fuels used for transportation.
This is how it will work.
- A limit, or cap, is set on
the amount of CO2
that is released from vehicles using transportation fuels. The initial cap
is based on a “business as usual” scenario and is reduced over time.
- Transportation fuel
suppliers must obtain an allowance for every ton of CO2 resulting from the fuel
they sell.
- The total number of available
allowances is limited based on the cap. An auction is held to determine
the price per ton of carbon to meet the cap. Transportation fuel suppliers
can bid on available allowances.
- States receive payments
based on the revenues raised from the sale of allowances. Each state then
determines how to best invest proceeds to reduce transportation carbon
emissions through subsidies of transportation options that emit less CO2. These might include
electric and hybrid-electric vehicle and charging station incentives, mass
transit improvements, park-and-ride lots, and encouraging smart
development. Attention will be given to relieving the cost impact on
low-income and rural Vermonters.
Although Vermont has participated in the TCI design process,
Governor Scott has been less than enthusiastic about signing onto this
multi-state agreement. He has stated his
opposition to any concept that includes carbon pricing. However, we must also consider the costs of
not participating. Since we are in a regional market, Vermont may be subject to
the increased cost of fuel without getting any of the benefits. We also face the costs associated with more
extreme weather that damages our roads and bridges, drowns our crops, and downs
our power lines. Furthermore, it is disingenuous to talk about concern for
climate change without taking the steps to reduce our contributions through a more
efficient transportation policy. The legislature may elect to participate only
to face a veto. It is time for our
Governor to translate words and intentions into action.
