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CLT UPDATE
Friday, January 17, 2020

TCI opposition is growing

Jump directly to CLT's Commentary on the News


Opposition is growing around a regional climate compact backed by Gov. Charlie Baker — with officials in nearby New England states knocking the deal as others mull it over.

Governors in New Hampshire, Connecticut and most recently Vermont have already cast a shadow on the Transportation Climate Initiative, which would implement a gas fee to reduce carbon emissions. Officials have estimated the measure would raise gas prices between 5 to 17 cents per gallon in the first year.

“If Vermont and Connecticut follow New Hampshire and withdraw from TCI, and Massachusetts stays in, is it still TCI or just a Massachusetts state gas tax?” MassFiscal Alliance Spokesman Paul Craney told the Herald.

Two organizations are campaigning against the measure in Maine and the House Speaker of Rhode Island has publicly indicated he would not support it.

The Maine Heritage Policy Center opposes the TCI because it’s a “bad deal for Maine,” according to spokesman Jacob Posik. At 17 cents per gallon, the TCI would cost the average family $225 per year, according to Posik.

“Mainers should not be penalized for driving their children to school, going to work or running errands,” Posik said.

Spokeswoman Julie Rabinowitz of Maine People Before Politics argued that that the status quo regulatory and market environment will reduce emissions by 19 percent without any additional incentives, and under the “most aggressive” scenario within the TCI, emissions would be reduced by an additional 6 percent.

“The whole goal of this scheme is to make gas more expensive for consumers so they will drive less or buy an electric car,” Rabinowitz said. “It is outrageous to burden the working poor and people of rural Maine with a huge increase in costs for only a 6 percent change over the status quo.”

Meanwhile, Maine Governor Janet Mills is taking a more centrist approach as she “continues to monitor” the Initiative and will be “appropriately cautious” when considering the issues, according to a spokeswoman.

Rhode Island House Speaker Nicholas Mattiello effectively ruled out any tax increases proposed by fellow Democrat Gov. Gina Raimondo last month, including the potential gas tax hike emanating from a regional climate initiative, saying it “will be looked at very skeptically,” The Providence Journal reported. Mattiello declined further comment.

The Boston Herald
Saturday, January 11, 2020
Support dwindles for Baker’s Transportation Climate Initiative


Taxation without representation has always been a non-starter in Massachusetts, all the way back to the Boston Tea Party in 1773.

But Gov. Charlie Baker (rhymes with Faker) apparently never learned the lessons of his Tory forebears, and now in his political dotage he’s come to fancy himself the reincarnation of King George III — essentially trying to double the state’s gasoline tax without a vote by either the Legislature or the people.

The only way Tall Deval’s multi-billion-dollar heist known as TCI would work is if every state between the Canadian border and Virginia signs on.

That was how the scam was drawn up — if the governments in all 12 or 13 states decided to screw the working people all at once, the kleptocrats fronted by Tall Deval could pull it off.

Alas, the reviews are pouring in, and what can now be called Baker’s Folly turns out to be a regional, bipartisan flop.

The Boston Herald
Sunday, January 12, 2020
Supporters few and far between for Charlie Baker and his gas tax proposal
By Howie Carr


Could Janet Mills be the next governor to hop off the TCI bandwagon?

New Hampshire Governor Chris Sununu left the multistate Transportation & Climate Initiative in a blaze of glory last month. The Republican governor’s brash exit — he declared TCI a “financial boondoggle” – prompted the natural question: Who could be next?

Of New England’s other governors, Mills seemed to sound the most cautious tone last week about TCI, which would impose a new fuel cost at the wholesale level by establishing a system of carbon pollution allowances for up to a dozen states. The new revenue would help subsidize alternative forms of transportation, such as electric buses and car-charging stations.

Mills, a Democrat starting her second year as Maine’s governor, has made curbing climate change a major priority.

That’s similar to the primary goal of TCI: to reduce carbon emissions from the region’s cars and trucks by up to 25 percent over a decade. But in a brief statement on Friday afternoon, press secretary Lindsay Crete said “the challenges of climate and transportation issues for rural states like Maine are unique, and the state will be appropriately cautious when considering these issues.”

She declined to elaborate. One potential translation: Our residents are heavily reliant on cars, so there might be better ways of doing this....

Of course, Massachusetts Governor Charlie Baker is fully on board: TCI is a cornerstone of his $18 billion transportation funding plan, and his energy secretary, Katie Theoharides, is leading the effort. (The Baker administration expects up to $500 million in new annual revenue from TCI, starting as soon as 2022.)

The Boston Globe
Tuesday, January 14, 2019
Mills becomes latest governor to express concern about regional fuel pact


As a regional transportation emission reduction pact has started to show cracks, Energy Secretary Kathleen Theoharides said Monday that the Baker administration is in "full-court press mode" to keep the coalition of eastern states together.

Theoharides testified on Tuesday before a legislative committee considering carbon pricing proposals, including bills that would assess a fee on vehicle and home heating fuels and return some of the penalty revenues as rebates to residents.

While her testimony focused on the array of policies the administration is pursuing to react to climate change, many lawmakers had questions for Theoharides about the future of the Transportation Climate Initiative in light of comments made by public officials in neighboring states.

The regional cap-and-trade program is still in development, but Gov. Chris Sununu of New Hampshire has already said he will not enter his state into a final program, and the governors of Vermont, Connecticut and Maine, as well as the speaker of the House in Rhode Island, have all raised concerns about potential costs to consumers.

Theoharides acknowledged that TCI is the "centerpiece" of Baker's plan to reduce emissions from the transportation sector to meet the state's carbon reduction requirements....

Sen. Michael Barrett, a Lexington Democrat and the co-chair of the Telecommunications, Utilities and Energy Committee, asked Theoharides what would happen if the coalition that began with 12 states and the District of Columbia fell apart.

"I will give you the honest answer, which is that I'm fully committed to getting TCI done and I'm not looking at Plan Bs because I still believe we can get this done," Theoharides said.

While Barrett acknowledged that a successful TCI would be ideal, he asked if Massachusetts could join with California or solicit other states outside the region to create a market for carbon allowances.

"Not ideal but workable, right?" he asked.

Theoharides said the program is being designed so that other states, or even Canada, could easily link up at a later date, but that was not under consideration at this time.

"We are in full court press mode to make sure Plan A gets done," she said....

Many lawmakers and environmental activists, including Sen. Marc Pacheco, are interested in seeing the Legislature ramp up its emission reduction requirements, and view carbon pricing as one way to do it.

Pacheco has proposed using market-based programs like TCI to get the state to net-zero carbon emissions by 2050.

"We can't wait. That's right. We can't wait any longer," Pacheco said, alluding to the attendees who had packed into the hearing room carrying pieces of paper with a picture of the Earth and those words.

"And I'm glad that the governor is not waiting and is taking the position to implement TCI, because we don't need a vote of the Legislature here to implement TCI. That was done in 2008. We have carbon pricing, without a vote," Pacheco said....

Rep. Paul Tucker, a Salem Democrat, argued, however, that TCI doesn't go as far as some of the other carbon pricing proposals filed in the Legislature this session....

"One of the points that can't be lost here is that TCI does not cover heating. It doesn't cover our buildings. It doesn't cover the industrial. It doesn't cover homes," Tucker said.

While greatly outnumbered by supporters, Rep. David DeCoste of Norwell brought economist and Beacon Hill Institute Executive Director David Tuerck to testify against what Tuerck called the "very bad idea" of carbon pricing.

Tuerck did a study for the Massachusetts Fiscal Alliance that was released in July and found that the bill (H 2810) championed by Driscoll would cost the state more than 11,000 jobs and increase taxes on the average household by $755 in the first year.

"It does nothing to improve the climate and it does a great deal to hurt the Massachusetts economy," Tuerck said.

Tuerck said climate change must be addressed nationwide at the federal level and with other countries.

State House News Service
Tuesday, January 14, 2020
Theoharides on TCI: Full-Court Press for Option A
Regional Effort an Alternative to State-Only Carbon Pricing


House Speaker Robert A. DeLeo cast fresh doubts on the prospects of a regional pact designed to curb carbon emissions while likely raising gas prices, saying Wednesday he doesn’t see “a whole lot of support” for it.

Instead, DeLeo suggested the Legislature will plow ahead with its own transportation financing bill, which could include a gas tax hike, regardless of Governor Charlie Baker’s decision to join the multistate effort.

Amid a crisis of confidence in the state’s public transit systems, it remains unclear when the House will pursue the long-promised legislation, with DeLeo saying Wednesday he’s “uncertain as to exactly when” a bill would emerge. But he said lawmakers probably can’t wait for a potential cash infusion from the Transportation and Climate Initiative, whose apparent softening of support throughout New England could complicate an effort that Baker has roundly supported.

“There doesn’t seem to be a whole lot of support for the concept, at least that I see right now,” DeLeo said Wednesday, citing media reports. The Winthrop Democrat suggested he’s “especially concerned” about the uneven backing among Massachusetts’s immediate New England neighbors....

New Hampshire Governor Chris Sununu, however, has already opted out, and his counterparts in Vermont, Connecticut, and Maine have all thrown up caution flags, directly or indirectly, in recent weeks. Rhode Island Governor Gina Raimondo has said she’s “fully committed” to TCI’s goals, but Nicholas Mattiello, Rhode Island’s House speaker, has signaled he’s against it.

Officials released a draft agreement in December, and each state could make a final decision later this year whether to participate.

“What I was looking for as we went through this process was to make sure especially that the New England states would be on board,” DeLeo said.

“Now, I’m not saying they’re all off,” he added. “Right now, first of all, for us to wait for that to go into effect, we could be waiting two or three years. I don’t think we can wait that long.” ...

The support, or lack thereof, for TCI within the Legislature, meanwhile, probably means more in the public discourse than it does on a legal level. Analysts and state officials say it’s likely Baker can commit Massachusetts to the agreement without legislative approval. In other states, it’s not so clear.

Straus said the public support in other states is important for the momentum of the agreement, not to mention a state’s ability to deter drivers from simply crossing the border to avoid higher gas prices created by the pact.

“That basic argument for TCI seems to have become a more cloudy one,” Straus said Wednesday.

The Boston Globe
Thursday, January 16, 2020
DeLeo doesn’t see ‘a whole lot of support’ for a regional climate pact


Massachusetts House Speaker Robert A. DeLeo is “concerned” about the lack of support garnered from New England states for the Transportation Climate Initiative as neighboring governors express doubts about the measure.

“There doesn’t seem to be a whole lot of support for the concept, at least that I see now,” DeLeo told reporters Wednesday. “What I’m especially concerned, what I was looking for as we went through this process, was to make sure especially that the New England states would be on board.”

Governors in New Hampshire, Connecticut, Vermont and Maine have already cast a shadow on the Transportation Climate Initiative, which would implement a gas fee to reduce carbon emissions. Officials have estimated the measure would raise gas prices between 5 to 17 cents per gallon in the first year but it remains unclear how high that cost could rise in subsequent years.

Critics of the initiative argue that Massachusetts could be put at an economic disadvantage if surrounding states pull out of the TCI, while Gov. Charlie Baker has countered that the purpose of a regional initiative is to ensure a level playing field.

The Boston Herald
Thursday, January 16, 2020
Speaker DeLeo ‘concerned’ about lack of support for TCI


Common sense is not all that common in politics.

So it was a bit of a surprise when New Hampshire Gov. Chris Sununu attributed his decision not to enter the Transportation Climate Initiative to “common sense.” The multistate compact would raise gas prices between 5 and 17 cents per gallon in the first year, which Sununu called “absolutely outrageous.”

He had previously referred to the measure as a “financial boondoggle” for the residents of his state....

Sununu argued that current regulations will reduce green house gas emissions by 19% without any additional incentives, and, under “very liberal estimates,” the TCI would reduce emissions by an additional 1% to 6%.

Taxing the heck out of citizens at the gas pumps for a 1% to 6% reduction in greenhouse gases — no, that isn’t common sense at all.

And yet, it’s still on the front burner here in Massachusetts....

But in these parts, the word solution is synonymous with money, as in taxpayer money. And as long as there are taxpayers, there are solutions to any problems the state will encounter.

A Boston Herald editorial
Thursday, January 16, 2020
Time for common sense solutions, not more taxes


Opponents of a Massachusetts-led regional effort to impose a cap on transportation emissions gathered Friday to claim momentum in their fight, drawing criticism from environmental activists who say they were asked to leave the event.

Representatives from right-leaning groups in all six New England states convened a press conference in Boston to renew their criticism of the Transportation and Climate Initiative, hopeful that political leaders across the region will embrace their argument that rising fuel prices that would be triggered by the effort will create an excessive burden for residents and businesses.

Paul Craney, spokesman for the Massachusetts Fiscal Alliance, said the effort to press lawmakers and governors to abandon TCI is a "day-by-day campaign" after multiple governors publicly aired concerns about the program.

"Things are going in our direction for the taxpayers and consumers," Craney told reporters. "Their voices are being heard, and they have to continue to speak up and be heard." ...

"What we once saw as maybe a regional approach seems to be falling apart," said Chris Carlozzi, state director of the National Federation of Independent Business for Massachusetts and Rhode Island. "If we're going forward alone, and there certainly has been some talk of doing that or going forward with a smaller number of states, Massachusetts small businesses who are already struggling to meet costs are going to find themselves at a severe disadvantage."

They portrayed the increase in gasoline and diesel prices resulting from a fuel cap as a tax, and several said ripples would spread into other facets of the economy as businesses face higher transportation costs. Some said the increase in gas prices would be regressive and harm lower-income residents, pointing to the Vermont AFL-CIO's criticism.

Mike Stenhouse, CEO of the Rhode Island Center for Freedom and Prosperity, said gubernatorial administrations or legislatures agreeing to the regional compact would "cede our taxing authority to an out-of-state group of unelected ideologues." ...

"Why are they doing this through this interstate compact? Why don't you just raise the gas tax by 17 cents? The infrastructure is already in place to collect the tax, you wouldn't have to hire any more bureaucrats to do it," said Rob Roper, president of the Ethan Allen Institute in Vermont. "The reason they're doing it through this convoluted, expensive means is because it's a CYA program for politicians who don't want to be seen as raising a tax."

State House News Service
Friday, January 17, 2020
TCI Opponents Share Objections at Boston Summit
Emissions, Gas Tax Impacts Weighed in 12 States


Chip Ford's CLT Commentary

"Baker has indicated that he would exercise his executive power to implement the TCI compact, but he did say he would give the Legislature more information about the pact." The Boston Herald, Jan. 11

"'And I'm glad that the governor is not waiting and is taking the position to implement TCI, because we don't need a vote of the Legislature here to implement TCI. That was done in 2008. We have carbon pricing, without a vote,' [Sen. Marc Pacheco] said...." State House News Service, Jan. 14

"Analysts and state officials say it’s likely Baker can commit Massachusetts to the agreement without legislative approval. In other states, it’s not so clear." The Boston Globe, Jan. 16

Article XXIII. No subsidy, charge, tax, impost, or duties, ought to be established, fixed, laid, or levied, under any pretext whatsoever, without the consent of the people, or their representatives in the Legislature.

The Massachusetts Constitution
Part the First
A Declaration of the Rights of the Inhabitants of the Commonwealth of Massachusetts

"No subsidy, charge, tax, impost, or duties . . ."  Gov. Baker, can you understand that?

". . . ought to be established, fixed, laid, or levied . . ."  Got that Gov. Baker?

". . .  under any pretext whatsoever . . ."  Clear enough, Gov. Baker?  Under — Any — Pretext — Whatsoever.

". . . without the consent of the people, or their representatives in the Legislature."  Gov. Baker — this means you cannot decree it on your own.

John Adams and the founding fathers of Massachusetts left no wiggle-room open to interpretation when they drafted the state's constitution — none.  Because they anticipated authoritarian scoundrels arising in the future and specifically protected future generations of citizens of the commonwealth from Baker's pompous ilk.

I recalled the other day my long ago (1989) lawsuit specifically defending that article in the state Constitution in Suffolk Superior Court, challenging then-Gov. Michael Dukakis's unilateral fee increases (Ford v. Secretary of Administration and Finance Edward Lashman; Civil Docket #89-2288), in which we argued in support of exactly that article in the Massachusetts Constitution.  This was before the group I founded in 1987 and led, Freedom First, merged with Citizens for Limited Taxation in 1996.  Barbara Anderson joined that lawsuit as one of the ten taxpayers effected that was required to file it.  Here's the news release we issued prior to filing it with the court:

Freedom First
News Release
April 20, 1989
Constitutional Challenge of Fee Increases

On Friday, April 21st at 10:30 AM, FREEDOM FIRST will sponsor a press conference at the Omni-Parker House to announce the filing of a 10-taxpayer lawsuit to challenge the constitutionality of the governor's unilateral fee increases.

Among those supporting this effort who will be on-hand to discuss this legal challenge will be FREEDOM FIRST chairman Robert "Chip" Ford, WRKO radio talk-show host Jerry Williams, Citizens for Limited Taxation executive director Barbara Anderson, and others representing statewide grassroot citizens' organizations who have signed-on to this challenge as taxpayers.

Attorney Steven Weisman of Amherst, who will present our case, will explain the legal issues to be addressed and will be available to answer specific questions concerning our challenge.

"Over 200 years ago, taxation without representation ignited a revolution," said Robert "Chip" Ford, "and this is nothing less than another form of such taxation upon the citizens of Massachusetts.  Article 23 of the Massachusetts Constitution certainly seems to spell it out clearly enough to me and others.  The Legislature gave away something which we entrusted to it.  This action is being taken to reclaim the integrity of our constitution and to ensure that it remains intact, as it was passed down to us."

The legal challenge will focus upon the questions of the constitutionality of the Legislature's actions in abdicating its responsibilities and powers under Article 23, and whether current fees are in excess of the amounts required to provide existing services by various state agencies.

Full Freedom First/CLT Fees Challenge; 1989-1992

One thing I've learned over my decades of citizens advocacy is that everything political is cyclical, and like a bad penny just keeps coming back for another run.  The trick is to stick around long enough for the re-run with enough institutional memory to battle it again, with more knowledge and hard-earned experience.

Charlie should know better.  When I filed that lawsuit Charlie Baker had just become the young co-director of the newly-founded Pioneer Institute.  At its recommendation, in 1991 Charlie was brought into the fledgling Weld administration as Under-Secretary of Health and Human Services, his first political appointment.  The following year the Weld administration settled with us in our lawsuit against the Dukakis administration's unilateral fee hikes (see details in the above link).

TCI — Baker's Boondoggle — appears to be falling apart on its own in the light of exposure.  At this time the only New England governor supporting it is Charlie Baker, along with Rhode Island Democrat Gov. Gina Raimondo.  She may be an advocate of TCI, but Rhode Island House Speaker Nicholas Mattiello, a conservative Democrat, vowed TCI will not happen in The Ocean State.  Even Democrat Governor Janet Mills of Maine is keeping her distance, being “appropriately cautious.”

And now House Speaker Robert DeLeo is similarly distancing himself from TCI, saying Wednesday he doesn’t see “a whole lot of support” for it.  The Boston Globe further reported:

Instead, DeLeo suggested the Legislature will plow ahead with its own transportation financing bill, which could include a gas tax hike, regardless of Governor Charlie Baker’s decision to join the multistate effort. . . .

“There doesn’t seem to be a whole lot of support for the concept, at least that I see right now,” DeLeo said Wednesday, citing media reports. The Winthrop Democrat suggested he’s “especially concerned” about the uneven backing among Massachusetts’s immediate New England neighbors....

“What I was looking for as we went through this process was to make sure especially that the New England states would be on board,” DeLeo said.

The State House News Service reported:

“Governors of those states, with I think the exception of Rhode Island, all have put up caution flags about the TCI,” House Transportation Committee Chairman William Straus said. “It does seem, again in varying degrees, that the other near states, which the governor has identified as an important component for momentum for TCI so you wouldn’t have cross-border gas purchases, that basic argument for TCI seems to have become a more cloudy one.”

Two separate gas tax hikes in Massachusetts remain a distinct possibility.  The Boston Globe reported ("DeLeo doesn’t see ‘a whole lot of support’ for a regional climate pact"):

[House Speaker Robert DeLeo] suggested the Legislature will plow ahead with its own transportation financing bill, which could include a gas tax hike, regardless of Governor Charlie Baker’s decision to join the multistate effort.... “Right now, first of all, for us to wait for that to go into effect, we could be waiting two or three years. I don’t think we can wait that long.”

Today a contingent of the Anti-TCI coalition traveled from their respective New England and Mid-Atlantic states to hold a press conference in Boston at the Hampshire House.  (More details in the State House News Service report below, "TCI Opponents Share Objections at Boston Summit.")  Rob Roper, president of the Ethan Allen Institute in Vermont, best summed up the true purpose of TCI which none of its advocates have mentioned nor will admit:

"Why are they doing this through this interstate compact?  Why don't you just raise the gas tax by 17 cents?  The infrastructure is already in place to collect the tax, you wouldn't have to hire any more bureaucrats to do it.  The reason they're doing it through this convoluted, expensive means is because it's a CYA program for politicians who don't want to be seen as raising a tax."

Mike Stenhouse, CEO of the Rhode Island Center for Freedom and Prosperity, provided the gravest concern.  He warned that gubernatorial administrations or legislatures agreeing to the regional compact would "cede our taxing authority to an out-of-state group of unelected ideologues."

Paul Craney, spokesman for the Massachusetts Fiscal Alliance, said the effort to press lawmakers and governors to abandon TCI is a "day-by-day campaign" after multiple governors publicly aired concerns about the program.  "Things are going in our direction for the taxpayers and consumers," Craney told reporters.  "Their voices are being heard, and they have to continue to speak up and be heard."

Keep speaking up, folks.  Loudly!  Let your state representative and senator even Gov. Baker's office for what it's worth hear from you.  [FIND THEM HERE]  Let them hear from you, unless you don't mind paying for increasingly-higher-forever gas and won't complain when you do.  This will be a cost imposed on a whim by invisible, unaccountable bureaucrats buried deeply within some distant and mysterious cartel.  Only if that doesn't bother you can you remain silent and inert.

Remember, once a new bureaucracy is established and rooted it will never go away.  Not ever.

The only time it can be stopped is before its seed is planted.

That time in NOW.

Chip Ford
Executive Director


 

The Boston Herald
Saturday, January 11, 2020

Support dwindles for Baker’s Transportation Climate Initiative
By Mary Markos

Opposition is growing around a regional climate compact backed by Gov. Charlie Baker — with officials in nearby New England states knocking the deal as others mull it over.

Governors in New Hampshire, Connecticut and most recently Vermont have already cast a shadow on the Transportation Climate Initiative, which would implement a gas fee to reduce carbon emissions. Officials have estimated the measure would raise gas prices between 5 to 17 cents per gallon in the first year.

“If Vermont and Connecticut follow New Hampshire and withdraw from TCI, and Massachusetts stays in, is it still TCI or just a Massachusetts state gas tax?” MassFiscal Alliance Spokesman Paul Craney told the Herald.

Two organizations are campaigning against the measure in Maine and the House Speaker of Rhode Island has publicly indicated he would not support it.

The Maine Heritage Policy Center opposes the TCI because it’s a “bad deal for Maine,” according to spokesman Jacob Posik. At 17 cents per gallon, the TCI would cost the average family $225 per year, according to Posik.

“Mainers should not be penalized for driving their children to school, going to work or running errands,” Posik said.

Spokeswoman Julie Rabinowitz of Maine People Before Politics argued that that the status quo regulatory and market environment will reduce emissions by 19 percent without any additional incentives, and under the “most aggressive” scenario within the TCI, emissions would be reduced by an additional 6 percent.

“The whole goal of this scheme is to make gas more expensive for consumers so they will drive less or buy an electric car,” Rabinowitz said. “It is outrageous to burden the working poor and people of rural Maine with a huge increase in costs for only a 6 percent change over the status quo.”

Meanwhile, Maine Governor Janet Mills is taking a more centrist approach as she “continues to monitor” the Initiative and will be “appropriately cautious” when considering the issues, according to a spokeswoman.

Rhode Island House Speaker Nicholas Mattiello effectively ruled out any tax increases proposed by fellow Democrat Gov. Gina Raimondo last month, including the potential gas tax hike emanating from a regional climate initiative, saying it “will be looked at very skeptically,” The Providence Journal reported. Mattiello declined further comment.

Raimondo is “fully committed” to the initiative, however, and “believes we need an aggressive approach to lowering carbon emissions in the transportation sector,” according to a spokeswoman. “The specific statutory and regulatory changes needed to meet those goals will be the source of public discussion and input over the coming year.”

Maryland Environment Secretary Ben Grumbles said the state “remains very engaged in the Transportation and Climate Initiative. We will continue to seek and review comments from citizens and stakeholders to determine potential next steps.”

New Jersey has also not committed to implementing the program at this point, according to the Department of Environmental Protection. Officials from New York, Pennsylvania, Virginia and the District of Columbia did not respond to multiple requests for comment.

New Hampshire Gov. Chris Sununu called the measure a “financial boondoggle”and said in mid-December he would not “force Granite Staters to pay more for their gas just to subsidize other states’ crumbling infrastructure.”

Connecticut Gov. Ned Lamont called the measure a “gas tax” that will punish drivers earlier this week and Vermont Gov. Phil Scott said he cannot support proposals that will increase costs for commuters.

Baker has indicated that he would exercise his executive power to implement the TCI compact, but he did say he would give the Legislature more information about the pact.

“The Administration is pleased by the robust participation by Northeast and Mid-Atlantic states throughout the program’s ongoing development process and by the broad coalition of support from members of both the business and environmental communities,” EEA Spokeswoman Katie Gronendyke said.


The Boston Herald
Sunday, January 12, 2020

Supporters few and far between for Charlie Baker and his gas tax proposal
By Howie Carr


Taxation without representation has always been a non-starter in Massachusetts, all the way back to the Boston Tea Party in 1773.

But Gov. Charlie Baker (rhymes with Faker) apparently never learned the lessons of his Tory forebears, and now in his political dotage he’s come to fancy himself the reincarnation of King George III — essentially trying to double the state’s gasoline tax without a vote by either the Legislature or the people.

The only way Tall Deval’s multi-billion-dollar heist known as TCI would work is if every state between the Canadian border and Virginia signs on.

That was how the scam was drawn up — if the governments in all 12 or 13 states decided to screw the working people all at once, the kleptocrats fronted by Tall Deval could pull it off.

Alas, the reviews are pouring in, and what can now be called Baker’s Folly turns out to be a regional, bipartisan flop.

GOP governor of New Hampshire: “A financial boondoggle.”

Democrat governor of Connecticut: “Probably not the way to go.”

GOP governor of Vermont: “I simply cannot support (tax grabs like TCI).”

Democrat speaker of the Rhode Island House: “(It) will be looked at very skeptically.”

Mass. state GOP chairman: “Let them fund their initiatives with the untold millions that Beacon Hill has already robbed from taxpayers.”

Vermont union president: “Most Vermonters have jobs they actually have to show up for and can’t ‘work from home.’”

And some skeptical states have yet to be heard from — Pennsylvania, for example, which has Republican majorities in both branches of its Legislature. It would be reassuring to think that everyone lining up against this highway robbery is really channeling the Sons of Liberty who threw the tea into Boston Harbor.

But at least in some cases you can detect the whiff of political expediency here.

Connecticut’s got other new taxes up its destitute sleeve, for instance, and doesn’t need to be cutting the “region” in on the score. Tall Deval’s gasoline hara-kiri would be an amazing boon to the economy of New Hampshire — much bigger than the banning of menthol cigarettes in the Bay State in June.

But most significantly, this is a presidential election year. The turnout will be way, way up, and this kind of outrageous tax hike would be political dynamite. It’s one thing for hacks to give the middle finger to their constituents, but none of them want to be photographed doing it.

Except, of course, Tall Deval.

Now, of course he will say that all the billions from this Transportation Climate Initiative (TCI) will be “earmarked,” which is impossible to do, and that after global warming is solved and polar bears everywhere are safe, the tax, I mean fee, will be “sunsetted.”

Sunsetted — you know, like the tolls on the Mass Pike were sunsetted, to be taken down after the initial bonds were paid off.

In 1988.

TCI is just another income redistribution scheme, transferring money from the people who actually earned it to clowns like the now-fired “director of sustainability” at Babson College, in other words nonprofit scam artists who were passed over for one of those phony-baloney $300,000-a-year associate deputy senior interim vice chancellor jobs at UMass.

Maybe if the Patriots were still in contention, Tom Brady would have diverted enough attention away from the State House to allow Tall Deval to pick our pockets without most people realizing they were being robbed until it was too late.

But now the alarms are ringing, the red-dye packs have exploded, and Tall Deval is busted.

How will he describe this latest smash-and-grab next week in his annual State of the State address? I mean, after he takes a few bows for his remarkable stewardship of the MBTA, the State Police, the RMV, UMass, DCF and every other dysfunctional state agency.

If you want to learn more about Baker’s new gasoline tax, go to www.massfiscal.org. There you will be directed to the TCI hacks’ own website, where you can leave your comments.

Here’s a small sample of the hundreds of thumbs-down:

Mary from Rhode Island: “This tax is a ridiculous fraud funded by money-grubbing grifters.”

Bill from Framingham: “I want to stop Gov. Baker’s GAS TAX.”

Ron from Vermont: “If you really want to stick it to the poor and particularly to people who work for a living, raise the price of gas.”

Feel free to put in your own two cents, before Tall Deval and the mullah-loving erstwhile director of sustainability steal it from you.

Maybe you should remind Baker that, as you can see from this photograph from 2014, he used to be against taxation without representation before he was for taxation without representation.


The Boston Globe
Tuesday, January 14, 2019

Mills becomes latest governor to express concern about regional fuel pact
By Jon Chesto


Could Janet Mills be the next governor to hop off the TCI bandwagon?

New Hampshire Governor Chris Sununu left the multistate Transportation & Climate Initiative in a blaze of glory last month. The Republican governor’s brash exit — he declared TCI a “financial boondoggle” – prompted the natural question: Who could be next?

Of New England’s other governors, Mills seemed to sound the most cautious tone last week about TCI, which would impose a new fuel cost at the wholesale level by establishing a system of carbon pollution allowances for up to a dozen states. The new revenue would help subsidize alternative forms of transportation, such as electric buses and car-charging stations.

Mills, a Democrat starting her second year as Maine’s governor, has made curbing climate change a major priority.

That’s similar to the primary goal of TCI: to reduce carbon emissions from the region’s cars and trucks by up to 25 percent over a decade. But in a brief statement on Friday afternoon, press secretary Lindsay Crete said “the challenges of climate and transportation issues for rural states like Maine are unique, and the state will be appropriately cautious when considering these issues.”

She declined to elaborate. One potential translation: Our residents are heavily reliant on cars, so there might be better ways of doing this.

Tony Buxton, an energy lawyer at Preti Flaherty in Portland, Maine, said “it’s asking a lot of her to support TCI” during the governor’s first two years in office, especially given her other environmental efforts. (Mills worked with Buxton at his law firm before she became governor.) He noted that Maine is the least dense state, in terms of population, east of the Mississippi. Driving is essential.

But Elizabeth Turnbull Henry, president of the Environmental League of Massachusetts and a TCI champion, cautioned against reading too much into Mills’ words. Mills wants to see Maine be carbon-neutral by 2045. To pull that off, Henry said, she’ll have to turn to the transportation sector.

So what do the other New England governors think?

Of course, Massachusetts Governor Charlie Baker is fully on board: TCI is a cornerstone of his $18 billion transportation funding plan, and his energy secretary, Katie Theoharides, is leading the effort. (The Baker administration expects up to $500 million in new annual revenue from TCI, starting as soon as 2022.)

Baker opposes a straight gas tax increase — something the House of Representatives is expected to advance on Beacon Hill in the coming weeks. TCI, however, acts like a gas tax because those pollution credits will likely drive up costs at the pump, possibly by anywhere from 5 cents to 17 cents a gallon.

A spokesman for Governor Gina Raimondo in Rhode Island said she is “fully committed” to the TCI goals, including an aggressive approach to lowering carbon emissions in the transportation sector.

In Vermont, Governor Phil Scott has expressed concerns about TCI in the past. He didn’t mention TCI by name in his state-of-the-state speech last week, but raised a few eyebrows when he said he prefers “incentives, not penalties” to transition Vermont to a greener future. TCI might be the last thing Connecticut Governor Ned Lamont wants to talk about right now. Lamont is trying to shore up support for a transportation bill that would revive tolls in Connecticut, a bill that could be taken up by lawmakers later this month. The tolls would only be for larger trucks, at 12 bridges in the state, but they still face resistance. (Lamont earlier wanted broader tolling.)

A spokesman said Lamont is still weighing TCI, but has ruled out supporting a gas tax increase as the primary way to fund infrastructure improvements.

Sununu, meanwhile, seems to be enjoying the controversy: He said he’s happy other governors are “rightfully sounding the alarm on this new gas tax.”

Most of these states need legislative approval to join TCI, although the precise number remains unclear. There could be a 50/50 split in New England. Conservation Law Foundation attorney Staci Rubin says her group’s legal analysis shows Massachusetts, Maine, and Connecticut likely do not need legislative approval, while the other three states potentially will.

Publicly, at least, Baker’s people seem unconcerned about defections, even though they want a critical mass of state participation.

A spokeswoman said the administration is pleased by broad support seen among environmental and business communities, and the “robust participation” by the various Northeast and Mid-Atlantic states. The group is accepting public comments on TCI rules through the end of February, and expects to figure out who is out and who is in this spring. The caution expressed in Maine indicates TCI’s boosters might still have some persuading to do.


State House News Service
Tuesday, January 14, 2020

Theoharides on TCI: Full-Court Press for Option A
Regional Effort an Alternative to State-Only Carbon Pricing
By Matt Murphy


As a regional transportation emission reduction pact has started to show cracks, Energy Secretary Kathleen Theoharides said Monday that the Baker administration is in "full-court press mode" to keep the coalition of eastern states together.

Theoharides testified on Tuesday before a legislative committee considering carbon pricing proposals, including bills that would assess a fee on vehicle and home heating fuels and return some of the penalty revenues as rebates to residents.

While her testimony focused on the array of policies the administration is pursuing to react to climate change, many lawmakers had questions for Theoharides about the future of the Transportation Climate Initiative in light of comments made by public officials in neighboring states.

The regional cap-and-trade program is still in development, but Gov. Chris Sununu of New Hampshire has already said he will not enter his state into a final program, and the governors of Vermont, Connecticut and Maine, as well as the speaker of the House in Rhode Island, have all raised concerns about potential costs to consumers.

Theoharides acknowledged that TCI is the "centerpiece" of Baker's plan to reduce emissions from the transportation sector to meet the state's carbon reduction requirements.

"We see states as being exactly in the position we expected them to be in, looking at all of the details, talking to their stakeholders and working toward that spring deadline," Theoharides told lawmakers.

The TCI coalition by the spring expects to finalize the details of the program, including a cap on car and truck emissions that would reduce emissions by between 20 percent to 25 percent, and add between 5 cents and 17 cents to the price of a gallon of gas.

Sen. Michael Barrett, a Lexington Democrat and the co-chair of the Telecommunications, Utilities and Energy Committee, asked Theoharides what would happen if the coalition that began with 12 states and the District of Columbia fell apart.

"I will give you the honest answer, which is that I'm fully committed to getting TCI done and I'm not looking at Plan Bs because I still believe we can get this done," Theoharides said.

While Barrett acknowledged that a successful TCI would be ideal, he asked if Massachusetts could join with California or solicit other states outside the region to create a market for carbon allowances.

"Not ideal but workable, right?" he asked.

Theoharides said the program is being designed so that other states, or even Canada, could easily link up at a later date, but that was not under consideration at this time.

"We are in full court press mode to make sure Plan A gets done," she said.

Theoharides announced for the first time at the hearing that emissions in 2017 were down 22.4 percent from 1990 levels, compared to 21.4 percent in 2016, and enough to keep the state on track to reach its legal requirement to lower emissions by 25 percent by 2020.

"We are seeing some interesting trends in the data this year. One of the more interesting ones is that transportation emissions actually decreased slightly even though vehicle miles and population increased. We really think this is due to decreased fuel consumption from improving vehicle efficiency standards," Theoharides said.

Transportation emissions currently account for about 42 percent of the state's carbon emissions, up from 32 percent in 1990, she said.

She said there was a "little uptick" in emissions from the building sector, noting more days that heat needed to be turned on in 2017 than in 2016.

Since 2005 when greenhouse gas emissions were 2 percent above 1990 levels, the state has gradually lowered its greenhouse gas output.

The steepest decline came between 2010 and 2012 when in those two years emissions fell 12 percent to 24 percent below 1990 levels, before coming back up slightly in 2013. The 2012 mark is the lowest emission level the state has achieved, according to the Department of Environmental Protection.

Barrett suggested that the decommissioning of the Pilgrim nuclear power plant could cause emissions to tick back up, but Theoharides said the clean energy lost from Pilgrim would be counteracted by the closure of the coal-fired plant at Brayton Point.

"Our projection shows us continuing to make progress and going beyond 25 percent," Theoharides said.

Many lawmakers and environmental activists, including Sen. Marc Pacheco, are interested in seeing the Legislature ramp up its emission reduction requirements, and view carbon pricing as one way to do it.

Pacheco has proposed using market-based programs like TCI to get the state to net-zero carbon emissions by 2050.

"We can't wait. That's right. We can't wait any longer," Pacheco said, alluding to the attendees who had packed into the hearing room carrying pieces of paper with a picture of the Earth and those words.

"And I'm glad that the governor is not waiting and is taking the position to implement TCI, because we don't need a vote of the Legislature here to implement TCI. That was done in 2008. We have carbon pricing, without a vote," Pacheco said.

The Global Warming Solutions Act of 2008 authorized the executive branch to enter into market-based agreements to reduce emissions from varying sectors.

Rep. Paul Tucker, a Salem Democrat, argued, however, that TCI doesn't go as far as some of the other carbon pricing proposals filed in the Legislature this session.

Tucker testified with Rep. William Driscoll and others on legislation that would put a price of $20 a ton on carbon dioxide emissions and return 70 percent of the fees collected to households and employers through rebates. The remaining 30 percent would be used to support clean transportation, climate resilience and renewable energy projects.

"One of the points that can't be lost here is that TCI does not cover heating. It doesn't cover our buildings. It doesn't cover the industrial. It doesn't cover homes," Tucker said.

While greatly outnumbered by supporters, Rep. David DeCoste of Norwell brought economist and Beacon Hill Institute Executive Director David Tuerck to testify against what Tuerck called the "very bad idea" of carbon pricing.

Tuerck did a study for the Massachusetts Fiscal Alliance that was released in July and found that the bill (H 2810) championed by Driscoll would cost the state more than 11,000 jobs and increase taxes on the average household by $755 in the first year.

"It does nothing to improve the climate and it does a great deal to hurt the Massachusetts economy," Tuerck said.

Tuerck said climate change must be addressed nationwide at the federal level and with other countries.

Another panel of economists said Tuerck's research ignored benefits like improved health conditions and flew in the face of "mounting evidence to the contrary" in economics literature.

"It's ignoring, among other things, what are you going to do with the revenue. It's just too simplistic," said Gil Metcalf, professor of economics at Tufts University and former deputy assistant secretary for energy at the U.S. Treasury.

Metcalf said research has shown that carbon pricing alternatives, such as renewable portfolio standards and low-carbon fuel standards, cost more per ton of carbon removed.

"The statewide fee on carbon emissions is where we should be, but if we can't do that participating in a transportation cap and trade system is a reasonable fallback as it would more than double and nearly triple the share of the commonwealth emissions subject to a carbon price," Metcalf said.

Christopher Knittel, an MIT economist, said Massachusetts is "well-suited" for a carbon tax because its economy is driven by a lot of industries that aren't "energy dependent," and the fee would fall on commerce coming into the state.

"You're taxing someone else's constituencies," Knittel said, drawing laughter from committee members and the audience.


The Boston Globe
Thursday, January 16, 2020

DeLeo doesn’t see ‘a whole lot of support’ for a regional climate pact
By Matt Stout


House Speaker Robert A. DeLeo cast fresh doubts on the prospects of a regional pact designed to curb carbon emissions while likely raising gas prices, saying Wednesday he doesn’t see “a whole lot of support” for it.

Instead, DeLeo suggested the Legislature will plow ahead with its own transportation financing bill, which could include a gas tax hike, regardless of Governor Charlie Baker’s decision to join the multistate effort.

Amid a crisis of confidence in the state’s public transit systems, it remains unclear when the House will pursue the long-promised legislation, with DeLeo saying Wednesday he’s “uncertain as to exactly when” a bill would emerge. But he said lawmakers probably can’t wait for a potential cash infusion from the Transportation and Climate Initiative, whose apparent softening of support throughout New England could complicate an effort that Baker has roundly supported.

“There doesn’t seem to be a whole lot of support for the concept, at least that I see right now,” DeLeo said Wednesday, citing media reports. The Winthrop Democrat suggested he’s “especially concerned” about the uneven backing among Massachusetts’s immediate New England neighbors.

The initiative, known as TCI, would impose a new fuel cost at the wholesale level by establishing a system of carbon pollution allowances for up to a dozen states. The goal, proponents say, is to slice carbon emissions from transportation by up to 25 percent over a decade, but in doing so, it is likely to drive up the costs at the pump anywhere from 5 cents to 17 cents a gallon. The Baker administration expects up to $500 million in new annual revenue once it goes into effect, which could happen as soon as 2022.

New Hampshire Governor Chris Sununu, however, has already opted out, and his counterparts in Vermont, Connecticut, and Maine have all thrown up caution flags, directly or indirectly, in recent weeks. Rhode Island Governor Gina Raimondo has said she’s “fully committed” to TCI’s goals, but Nicholas Mattiello, Rhode Island’s House speaker, has signaled he’s against it.

Officials released a draft agreement in December, and each state could make a final decision later this year whether to participate.

“What I was looking for as we went through this process was to make sure especially that the New England states would be on board,” DeLeo said.

“Now, I’m not saying they’re all off,” he added. “Right now, first of all, for us to wait for that to go into effect, we could be waiting two or three years. I don’t think we can wait that long.”

DeLeo had first said he intended to take up a transportation financing bill last fall before pushing it into 2020. He told the State House News in November that he was “shooting for January” and his transportation chairman, Representative William M. Straus, has said that was still a target.

But DeLeo offered no firm timeline Wednesday other than a possible vote in winter. The bill’s actual contents have, too, remained a mystery, with options ranging from a gas tax hike to increased fees on ride-hail trips through Uber, Lyft, and other companies.

DeLeo insisted that the lack of a clear timetable shouldn’t be interpreted as him “backing off.”

“You can rest assured, first of all, there will be a debate relative to transportation funding,” he said. “It seems to me that every day that goes by, there’s a further example, I think, of the need for transportation revenue and for some work to begin relative to our transportation system.”

The support, or lack thereof, for TCI within the Legislature, meanwhile, probably means more in the public discourse than it does on a legal level. Analysts and state officials say it’s likely Baker can commit Massachusetts to the agreement without legislative approval. In other states, it’s not so clear.

Straus said the public support in other states is important for the momentum of the agreement, not to mention a state’s ability to deter drivers from simply crossing the border to avoid higher gas prices created by the pact.

“That basic argument for TCI seems to have become a more cloudy one,” Straus said Wednesday.


The Boston Herald
Thursday, January 16, 2020

Speaker DeLeo ‘concerned’ about lack of support for TCI
By Mary Markos


Massachusetts House Speaker Robert A. DeLeo is “concerned” about the lack of support garnered from New England states for the Transportation Climate Initiative as neighboring governors express doubts about the measure.

“There doesn’t seem to be a whole lot of support for the concept, at least that I see now,” DeLeo told reporters Wednesday. “What I’m especially concerned, what I was looking for as we went through this process, was to make sure especially that the New England states would be on board.”

Governors in New Hampshire, Connecticut, Vermont and Maine have already cast a shadow on the Transportation Climate Initiative, which would implement a gas fee to reduce carbon emissions. Officials have estimated the measure would raise gas prices between 5 to 17 cents per gallon in the first year but it remains unclear how high that cost could rise in subsequent years.

Critics of the initiative argue that Massachusetts could be put at an economic disadvantage if surrounding states pull out of the TCI, while Gov. Charlie Baker has countered that the purpose of a regional initiative is to ensure a level playing field.

“Governors of those states, with I think the exception of Rhode Island, all have put up caution flags about the TCI,” House Transportation Committee Chairman William Straus said. “It does seem, again in varying degrees, that the other near states, which the governor has identified as an important component for momentum for TCI so you wouldn’t have cross-border gas purchases, that basic argument for TCI seems to have become a more cloudy one.”

New Hampshire Gov. Chris Sununu rejected the initiative almost immediately after a draft agreement was released last month, calling it a financial “boondoggle.” In an exclusive interview Tuesday with the Herald, Sununu acknowledged that the TCI would bring in a copious amount of revenue for the Bay State, but went so far as to say he would thank Massachusetts for joining.

“Thank you, because you’re going to drive all the business to New Hampshire,” Sununu told the Herald. “Everyone’s going to come over the border. You might as well shut down every gas station and convenience shop along the border. It would be really tough.”

Connecticut Gov. Ned Lamont earlier this week called the measure a “gas tax” that will punish drivers and Vermont Gov. Phil Scott said he cannot support proposals that will increase costs for commuters. Maine Gov. Janet Mills will be “appropriately cautious” as she “continues to monitor” the Initiative, a spokeswoman said last week.

In a statement, Baker’s office pushed back on the characterization of the TCI as a gas tax.

“Governor Baker opposes raising the gas tax and is pursuing a regional transportation and climate initiative to invest in public transportation, reduce emissions and cut congestion,” the statement read. “The initiative has support from members of both the business and environmental communities who believe this initiative will further mitigate the impacts of climate change, protect the health of our residents, and build a more resilient, sustainable and equitable transportation system for the next generation.”

DeLeo, who indicated Wednesday that he plans to file legislation to create revenue for transportation in the coming months, also said that the money collected from the TCI wouldn’t be available for two or three years.

“In terms of what’s been happening in terms of transportation, I don’t think we can wait that long,” DeLeo said.


The Boston Herald
Thursday, January 16, 2020

A Boston Herald editorial
Time for common sense solutions, not more taxes


Common sense is not all that common in politics.

So it was a bit of a surprise when New Hampshire Gov. Chris Sununu attributed his decision not to enter the Transportation Climate Initiative to “common sense.” The multistate compact would raise gas prices between 5 and 17 cents per gallon in the first year, which Sununu called “absolutely outrageous.”

He had previously referred to the measure as a “financial boondoggle” for the residents of his state.

The New Hampshire governor met with Boston Herald editors this week to discuss TCI and other issues our states share.

As the Herald’s Mary Markos reported, Sununu argued that current regulations will reduce green house gas emissions by 19% without any additional incentives, and, under “very liberal estimates,” the TCI would reduce emissions by an additional 1% to 6%.

Taxing the heck out of citizens at the gas pumps for a 1% to 6% reduction in greenhouse gases — no, that isn’t common sense at all.

And yet, it’s still on the front burner here in Massachusetts.

New Hampshire adopted the Regional Greenhouse Gas Initiative in 2008, as part of a Northeast/Mid-Atlantic 10-state initiative to reduce greenhouse gas emissions. It’s a cap-and-trade program, and a report by nonprofit environmental group Acadia Center found that the RGGI states — Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont — reduced carbon dioxide emissions in the power sector by nearly half, exceeding the national rate by 90%.

The supposed “problem” with initiatives such as the RGGI is that they don’t penalize people for driving cars, the ultimate aim of environmentally linked gas taxes such as in the TCI. If gas is prohibitively expensive, folks will look to alternative transportation, which they just so happen to have funded through those astronomical gas prices. Nor do they turn taxpayers into ATMs to fund transportation projects, whether they take public transportation or not.

The impact on people who have to live day to day, commute, pay their bills and feed their families, well, that’s collateral damage. What do you do when you need to drive your kids to school, or go to work, but you can’t afford to fill up your car?

The TCI takes a rather myopic view of how greenhouse emissions can be lowered, which is a lost opportunity to examine other ideas, ones that may work for different states in the “pact.”

Sununu spoke of the need for flexibility in problem solving. He was an environmental engineer, back in the day, MIT Class of ’98. Engineers are big on practical solutions — perhaps all politicians should take a crash course right after they’re sworn in.

But in these parts, the word solution is synonymous with money, as in taxpayer money. And as long as there are taxpayers, there are solutions to any problems the state will encounter.

The thing is, there are alternatives for many Bay State residents if Massachusetts joins the TCI. Head over the border to New Hampshire and gas up there. Do a little sports betting while they’re at it. And maybe even check out some real estate.

“At the end of the day, you have to do what’s right by your citizens,” Sununu said.

Are you listening, Gov. Baker?


State House News Service
Friday, January 17, 2020

TCI Opponents Share Objections at Boston Summit
Emissions, Gas Tax Impacts Weighed in 12 States
By Chris Lisinski


Opponents of a Massachusetts-led regional effort to impose a cap on transportation emissions gathered Friday to claim momentum in their fight, drawing criticism from environmental activists who say they were asked to leave the event.

Representatives from right-leaning groups in all six New England states convened a press conference in Boston to renew their criticism of the Transportation and Climate Initiative, hopeful that political leaders across the region will embrace their argument that rising fuel prices that would be triggered by the effort will create an excessive burden for residents and businesses.

Paul Craney, spokesman for the Massachusetts Fiscal Alliance, said the effort to press lawmakers and governors to abandon TCI is a "day-by-day campaign" after multiple governors publicly aired concerns about the program.

"Things are going in our direction for the taxpayers and consumers," Craney told reporters. "Their voices are being heard, and they have to continue to speak up and be heard."

The event deepened tensions between the think tanks who hosted it and environmental groups who see TCI as an important component of state efforts to address climate change.

Craney denied one person in attendance the chance to ask a question because he was not a member of the press. Members of environmental advocacy groups also said they were asked to leave after being told the event was private.

One of those individuals, Environmental League of Massachusetts President Elizabeth Henry, told the News Service that she did not intend to ask any questions but hoped to hear a clear alternative for reducing greenhouse gas emissions from TCI opponents. She said that hope went unfulfilled.

"We have a statutory obligation to reduce greenhouse gas emissions 80 percent by 2050," she said, referring to the state's Global Warming Solutions Act of 2008 that sets an emissions reduction target. "Climate change mitigation is statutorily mandated, and if not TCI, then what? I'm open to hearing it, but I feel like we have a really great solution in TCI."

If implemented, the program would place a cap on emissions from road fuel sources in participating states and sell carbon allowances, with resulting revenue intended to fund clean transportation investments. Officials have estimated TCI could increase gas prices between five and 17 cents per gallon and reduce carbon emissions from passenger vehicles by 20 to 25 percent.

After parties released the updated estimates, New Hampshire Gov. Chris Sununu withdrew his state from talks, slamming the pact as a "financial boondoggle."

Governors in Vermont, Connecticut and Maine and the Rhode Island House speaker have also raised concerns about the costs without announcing withdrawal.

During their press conference, the anti-TCI attendees, some of whom had already been on record campaigning against the compact, reiterated many of the points they have made in the month since release of initial estimates about the costs and benefits of a regional effort.

"What we once saw as maybe a regional approach seems to be falling apart," said Chris Carlozzi, state director of the National Federation of Independent Business for Massachusetts and Rhode Island. "If we're going forward alone, and there certainly has been some talk of doing that or going forward with a smaller number of states, Massachusetts small businesses who are already struggling to meet costs are going to find themselves at a severe disadvantage."

They portrayed the increase in gasoline and diesel prices resulting from a fuel cap as a tax, and several said ripples would spread into other facets of the economy as businesses face higher transportation costs. Some said the increase in gas prices would be regressive and harm lower-income residents, pointing to the Vermont AFL-CIO's criticism.

Mike Stenhouse, CEO of the Rhode Island Center for Freedom and Prosperity, said gubernatorial administrations or legislatures agreeing to the regional compact would "cede our taxing authority to an out-of-state group of unelected ideologues."

Others argued that the effects would disproportionately harm their communities because residents in rural states such as Maine and Vermont rely more on driving — and driving greater distances — than do, for example, commuters in eastern Massachusetts.

"Why are they doing this through this interstate compact? Why don't you just raise the gas tax by 17 cents? The infrastructure is already in place to collect the tax, you wouldn't have to hire any more bureaucrats to do it," said Rob Roper, president of the Ethan Allen Institute in Vermont. "The reason they're doing it through this convoluted, expensive means is because it's a CYA program for politicians who don't want to be seen as raising a tax."

House lawmakers in Massachusetts are separately preparing a transportation revenue package likely to include an increase in the state's 24-cents-per-gallon gas tax. Baker opposes a gas tax increase and has promoted the regional market-based approach as the best way to reduce transportation emissions.

The Baker administration continues to push other states to remain committed. Energy and Environmental Affairs Secretary Kathleen Theoharides said Monday the administration was in "full-court press mode" to keep the coalition together.

Neither Maine nor New Hampshire had signed the same December 2018 agreement as 10 other jurisdictions involved in the program, opting instead to remain "observers" as the framework was developed.

New York also had observer status originally, although Theoharides said in December that the distinction between observer state and full participant had blurred as conversations unfolded.

New York Gov. Andrew Cuomo is pursuing ambitious climate goals including a net-zero emissions statewide economy by 2050, but his position on TCI is not clear yet.

The public comment period on the draft TCI memorandum of understanding (MOU) ends on Feb. 28. The forces behind the TCI expect a final MOU in the spring, when states and the District of Columbia will decide whether to sign it and participate in the regional program, which could be operational by 2022.

 

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