What is TCI-P?  

TCI-P is a historic multi-jurisdictional program to reduce carbon emissions from cars, trucks, and other on-road motor vehicles and increase investments in an equitable, cleaner, and more resilient transportation system. In December 2020, Connecticut, Massachusetts, Rhode Island, and the District of Columbia signed a Memorandum of Understanding (MOU) committing to work to implement TCI-P in their jurisdictions.

TCI-P will “cap” or limit carbon dioxide emissions from gasoline and on-road diesel fuel and require fuel suppliers to purchase “allowances” for the amount of carbon emissions produced by fuel covered under the cap. The cap will decline over time, guaranteeing emissions reductions. Connecticut will reinvest the proceeds from allowance auctions in strategies to further reduce emissions and air pollution from transportation.

What are the goals of TCI-P?  

What is the process for implementing TCI-P in Connecticut?

First, Connecticut must pass legislation authorizing TCI-P and then enact regulations to implement the program. TCI-P is a multi-jurisdictional program consisting of individual programs adopted and implemented in participating jurisdiction, and facilitated by a non-profit administrative organization governed by participating jurisdictions. The model rule  will serve as the common framework for each participating jurisdiction’s implementing regulations.  Connecticut will adapt the model rule through a public process into state regulations through Connecticut’s eRegulation System.

Which states are joining TCI-P now, and will other states join?  

On December 21, 2020, Connecticut, Massachusetts, Rhode Island, and the District of Columbia signed a groundbreaking Memorandum of Understanding (MOU) to implement TCI-P in their jurisdictions. Those jurisdictions collaborated with many other Northeast, Mid-Atlantic, and Southeast states to develop TCI-P to provide flexibility for states to join based on their unique needs and what works best for them.

Each state has different legislative and regulatory timelines and circumstances that they must take into account when deciding whether and when to join a program like TCI-P. In a joint statement accompanying the release of the TCI-P MOU, 12 jurisdictions committed to continuing to work together on the development of the details of the program while pursuing state specific actions to reduce emissions and provide clean transportation solutions. As part of the Transportation and Climate Initiative (TCI), Delaware, Maryland, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and Virginia continue to actively participate in developing TCI-P and all states have the opportunity to join the program in the future.

How can people participate in the TCI-P process? 

A transparent and inclusive process is critical to the success of TCI-P. There are several opportunities to engage  in Connecticut’s regulation-making process.Individuals and organizations are encouraged to review and provide feedback on the Draft Framework for Public Engagement (Guiding Principles), Draft TCI-P Model Implementation Plan, and Draft Proposed Strategies for Regional Collaboration through the public input portal by August 13, 2021.TCI-P is also designed to ensure that the public has regular opportunities to weigh in on the implementation of TCI-P for as long as the program exists, through periodic program reviews and resulting regulatory processes, annual reporting, and the Equity and Environmental Justice Advisory Board.Please visit the Department of Energy and Environmental Protection’s TCI-P webpage for program updates and announcements of upcoming events, and to sign up for email updates. 

What are Connecticut's climate and air quality goals? 

Connecticut has established overall greenhouse gas emissions reduction targets of at least 45 percent below 2001 levels by 2030, and 80 percent below 2001 levels by 2050.Beginning on January 1, 2030, at least 50 percent of all cars and light-duty trucks and 30 percent of all buses purchased or leased by the state must be zero emission vehicles (ZEVs). The state also has near-term commitments under several multi-jurisdictional agreements to rapidly accelerate the deployment of light-duty, medium-duty, and heavy-duty ZEVs. Connecticut also persistently fails to attain the National Ambient Air Quality Standards for harmful ground-level ozone (smog). 

How much will TCI-P reduce carbon emissions?  

The TCI-P cap on carbon emissions will decline over time, guaranteeing at least a 26 percent reduction in carbon pollution from transportation from 2023 to 2032. 

How does TCI-P reduce emissions?

“Cap-and-trade,” “cap-and-reduce,” and “cap-and-invest” all refer to market-based policy tools used in the United States and around the world to reduce harmful pollution at the lowest cost for consumers and businesses, as the market finds the most cost-effective ways to reduce emissions. TCI-P is a cap-and-invest program in which participating jurisdictions auction emissions “allowances” and invest the proceeds in projects and programs that further reduce pollution.

TCI-P will “cap” carbon emissions from gasoline and on-road diesel fuel sold in Connecticut and will require wholesale fuel suppliers to hold allowances to cover these emissions from the combustion of that fuel. Under TCI-P, each allowance represents one metric ton of carbon dioxide. Fuel suppliers can purchase emissions allowances at regular auctions and trade allowances with other market participants. Proceeds from allowance auctions go back to participating jurisdictions to reinvest in clean transportation projects and programs.

TCI-P will guarantee emissions reductions in two ways. First, the number of allowances available at auction will decline over time. Second, investments with auction proceeds will give consumers better choices that make it easier to consume less fuel through improved public transit, better telework and telehealth options, and more fuel-efficient or electric vehicles. TCI-P proceeds would support investments in cleaner transportation options, further reducing emissions and offering people and businesses more transportation choices for getting around at the lowest cost.

What are the health and safety benefits of TCI-P? 

Poor air quality causes or worsens acute and chronic respiratory problems such as asthma and, Chronic Obstructive Pulmonary Disease, and increases the risk of premature death, cancer, cardiovascular damage, and developmental and reproductive harm. TCI-P will re-invest program proceeds to support and expand clean and modern transportation projects and programs that will reduce emissions and pollution, reduce the impacts of climate change, improve public health and resilience, and lead to equitable economic development in those areas most in need and throughout Connecticut.

How can TCI-P benefit Connecticut’s rural communities?

TCI-P can provide significant benefits to Connecticut’s rural communities, many of which are underserved by the transportation system and lack access to clean mobility options. For example, TCI-P proceeds could be used to provide incentives to help people transition to lower emitting cars and trucks; expand broadband access to enable telecommuting, telehealth, and job growth; build safer and cleaner roadway intersections; and improve and expand clean transportation options like micro-transit, ride sharing, bus, bike, and pedestrian access.

How will TCI-P impact Connecticut’s economy? 

TCI-P is projected to be a net economic benefit for Connecticut. Transportation is the backbone of the state’s economy, and TCI-P is projected to raise over $1 billion in funding between 2023 and 2032 to invest in transportation options that will create jobs and contribute to increased economic activity in Connecticut communities. Increased access to transportation and broadband will expand companies’ hiring pools and provide individuals with increased job opportunities. Modeling indicates that over time TCI-P investments will generate significant annual increases in gross domestic product, disposable personal income, and employment. 

TCI-P is a net benefit for the CT economy. These benefits include investments in communities across the state, creating jobs and other benefits including*: