TCI Regional Policy Design Stakeholder Submissions

When will be the next time we have an opportunity to substantially reduce GHGs through a regional approach that will financially benefit the State, providing funds to promote climate initiatives and ensure equity for low income Vermonters? This is a common-sense policy--lets not miss this chance.

Vermont should join the TCI! A few cents per gallon is within the normal daily fluctuations for fuel prices, and this would be a great start to reducing our climate emissions. If we invest the funds in rural transit, it could help provide affordable transportation for those who need it most. The RGGI has been a success and we should build on that by joining the TCI.

I am excited to see Vermont join the Transportation and Climate Initiative. Given that our emissions are still 13% above 1990 levels, with transportation acting as the biggest culprit, Vermont must be looking at innovative ways to substantially decrease our emissions through 2030. Our efficiency utilities, low-income weatherization program and EV incentive program have done great things to get the ball rolling on climate action, but I fear they are not doing nearly enough to make Vermont a leader on this issue. The emission reduction goals spelled out in TCI are by no means bold, but if TCI could bring in $18-$60 million in just the first year of its implementation for substantial investments in EV incentives, EV charging infrastructure, public transportation, and returns for low-income Vermonters - while making out of state travelers pay their fair share - I'm all in.

How does TCI plan on addressing transit agencies and diesel fuel usage? Would they be exempt from the diesel fuel surcharge? They move a lot of people around and are necessary (in some cases, the only transportation options) for many low- and moderate-income and minority residents. How will TCI balance emissions and health needs with keeping public transit affordable for all users?
Thanks.

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)

This will seriously impact my ability to work. Despite being highly trained and experienced at my job I can only earn minimum wage where I live. There are no jobs near me that are similar. There is no public transportation. Every job I've had in the past 6 years has required me to commute an hour to an hour and a half daily to get to work. In northern Maine there are no alternatives. And buying an electric car wouldn't help. A) I can afford the price and B) they don't yet get enough mileage to get me to and from work.

The added cost in gas would effect my ability to heat my home because the added cost of delivery would be passed onto me . tradesmen like electricians, plumbers and carpenters as well as appliance repairman who are all already struggling with costs of doing business vs charging fees clients can afford to pay would be critically hampered and maybe even forced to me leave Maine due to increased costs.

Please do not do this!! Maine and the working poor such as must can not afford it!!

Climate change is happening and is not slowing down. We need to address this quickly to avoid irreparable damage to out environment by changing our means of transportation. Auto manufacturers now have electric vehicles available but we need a governmental push to make the transition away from fossil fuels. The transition could be a boost to the economy if the proper incentives are put in place. Please make this happen.