TCI Regional Policy Design Stakeholder Submissions

February 28, 2020

To: Governor Ned Lamont, Governor John Carney, Governor Janet Mills, Governor Larry Hogan, Governor Charlie Baker, Governor Chris Sununu, Governor Phil Murphy, Governor Andrew Cuomo, Governor Tom Wolf, Governor Gina Raimondo, Governor Phil Scott, Governor Ralph Northam and Mayor Muriel Bowser.

On behalf of Vermont Businesses for Social Responsibility (VBSR), I am writing to express strong support for the Transportation and Climate Initiative (TCI) and comment on the draft Memorandum of Understanding (MOU.)

Vermont Businesses for Social Responsibility is a business association representing over 730 business members in every industry and every county across the state; united in our shared mission to advance an ethic that protects the natural, human, and economic environments of Vermont as a business thrives.

From global brands like Ben & Jerry’s and Burton to small startups like Mamava, VBSR members are some of the most successful and iconic businesses in our state, who together shape the Vermont brand. Of the top 25 companies in Vermont, 13 are VBSR members – including our champion members Green Mountain Power and National Life Group. Those 13 companies together earned over 9 billion dollars in revenue in 2012, according to Vermont Business Magazine.

In 2018, we surveyed our members on annual revenues – just under 50%, or about 185 companies, earn less than $500,000 a year. About 16% earn between $500,000 and $1 million a year, 9% earn $1 to 5 million a year, 7% earn $5-20 million a year, and 10%, or about 70 companies, earn over $20 million a year in revenue.

No matter their size our businesses recognize that our continued reliance on fossil fuels is triggering a climate crisis and stifling our economy. The longer we delay in taking action the more exacerbated these impacts become. For Vermont, the transportation sector accounts for nearly half of our carbon emissions and so it is imperative that we seize this rare opportunity to decarbonize our region’s transportation system with a strong, equitable TCI cap-and-invest program.

The potential benefits of this carbon pricing system make it a far cry from the gas tax opponents claim it will be. A cap and invest system would establish a limit on carbon emissions and a regional auction for participating states to sell their emissions allowances. They can then invest those revenues into cost-saving programs designed to reduce prices at the pump such as electric vehicle (EV) incentives, rural broadband to support remote work and telemedicine, bike and pedestrian infrastructure, public transit, and more. Conversely, a gas tax means higher costs at the pump without any palpable transportation or environmental benefit.

VBSR urges the working group to develop a program that will not only decrease climate pollution but use program revenues to address the needs of rural, low-income communities who are overburdened by vehicular pollution, transportation costs, and a lack of clean transportation options. These communities are often those most directly impacted by the adverse effects of climate change and as such should enjoy the strongest benefits of this program. Considering the different challenges each state faces in our region, we also call for strategic, state-by-state investments to be made to ensure equity.

The challenges rural, working Vermonters face are far different than those living in Boston, Baltimore, or Burlington, so it is essential that we give states the flexibility to invest program revenues into transportation solutions that serve their respective communities rather than take a one-size-fits-all approach.

The urgency to develop and implement TCI cannot be overstated and VBSR is pleased to see that the timeline outlined in the draft MOU reflects this. The initial compliance period launch on January 1, 2022 recognizes the need to take swift action while providing states with adequate time to elevate the program and prepare for participation.

Along that same line, we strongly urge that the working group adopt an emissions cap on transportation pollution at a pace and scale in line with science by requiring no less than a 25% pollution reduction in the first ten years from the program’s 2022 adoption. There is a clear consensus within the scientific community that significant, rapid pollution reductions are needed, and we implore you to consider pursuing even more ambitious greenhouse gas reductions moving forward as well as continuous programmatic evaluation of TCI to ensure its continued progression and efficacy.

Climate change is without question the single greatest threat to Vermont's communities, ecosystems, and shared way of life. Spring is arriving earlier, heavy rainstorms are becoming commonplace, and our summers are hotter and drier than ever. Meanwhile more frequent and severe storms cause floods that cost us millions in damaged property and infrastructure. From winter recreation and local food driven tourism to manufacturing and service industries, these changes disrupt nearly every facet of our state’s economy— and we can no longer afford half measures.

TCI offers one of the most promising opportunities to advance solutions that recognize our shared responsibility to take action, strengthen our economy and bring Vermont’s most vulnerable along in our climate future by reducing pollution from the transportation sector. We appreciate the opportunity to comment and your continued work to improve and implement a strong, equitable program.

Thank you,

Jordan Giaconia
Public Policy Manager
Vermont Businesses for Social Responsibility
Jordang@vbsr.og
860-304-2251(mobile)

The attached comments on behalf of 172 organizations from across the 13 TCI jurisdictions state our support for an ambitious and equitable TCI program that includes strong safeguards and guarantees for overburdened and underserved communities.

Taxing motorists in the name of the climate is ridiculous. In fact, the thought that paying more taxes to the Government will affect the weather in any way is ludicrous. Especially considering that these money grabs in the name of climate change are typically squandered away via big money contracts awarded to environmental companies to pay themselves to "make a difference". Keep your hands out of our pockets and let the working class continue to spend their hard earned money on what they deem important.

Actions that raise the price of gasoline and heating oil is causing Mainers with moderate incomes to not be able to afford heating oil or electricity for heat during Maine's bitter winters. Ironically, the alternative is to burn wood which is a much greater pollutant than heating oil. For people who can't afford either, they have to live with the fear of freezing to death in their homes or, as a minimum, anticipate damage to home systems like plumbing and expensive repairs. This is not a well thought out plan and one that will harm people as a result of an irresponsible agenda.

This is nothing but a tax on the poorest amongst us. This is not the way to fix climate change. Free market solutions are a day better long term solution that will not harm the population.

I am totally against the TCI initiative. This is a cowardly step to try and bypass the responsibility of lawmakers to write tax law as well as push a climate agenda that reasonably minded people still have serious disagreements about. In 2014 MA residents resoundingly rejected another brazen and cowardly attempt to index gas tax increase to inflation rather than making lawmakers vote on it. TCI is worse as legislators don't even weigh on it. One of the proverbial "straws that broke the camel's back" to form this once great nation was taxation without representation. TCI is that in spades and I advise MA government officials not to join this initiative.

This is a back door way to go around legislation to increase fuel taxes with no accountability. Mr. Baker remember that you would not have been elected if it was not for the referendum gas tax question on the ballot five years ago. This is a BS move. What we need is a bill introduced that states that ANY talk about anything that affects the taxpayers pocketbook in any way is always brought before the PEOPLE on a ballot. That will be our accountability!!!!

Why can't our governmental leaders do what the ordinary citizen does everyday. When you want something new, save for it or cut something else out of the budget. We the people are not a bottomless well of funds. If climate concerns are truly at cataclysmic level then pull the money from an existing budget now!! Not doing so only proves the hypocrisy of the argument!!

Let's get something straight at the outset. The TCI is a TAX and it's a tax on all of us who use gasoline (which is just about everyone). TCI is also a corrupt scam that bypasses the legislative process and the will of the people and puts it in the hands of unaccountable bureaucrats all for the sake of stealing money to line their pockets and pay for their "Pet Projects" such as transportation agencies that couldn't run a childs train set, never mind a public transit system. Let's get something else straight . There have been at least 5 ice ages in Earths history and they all happened before mans existence here. In between these ice age periods there were global warm ups that happened without carbon emitting humans or industry on the planet. Man caused "climate change"; global warming; global cooling; climate catastrophe, WHATEVER these climate "kooks" are calling it this week is a total fraud, perpetrated to steal taxpayer money. We need to wake up as a people and stop falling for it. Our gas taxes should be funding the building and repair of our highways, roads, bridges and tunnels ONLY. Nothing else.