Energy Policy

Video: Understanding the Transportation & Climate Initiative

on

Governor Janet Mills is considering entering Maine into the Transportation & Climate Initiative, a regional collaboration of 12 states that would effectively price carbon emissions within Maine’s transportation sector.

The TCI is a cap-and-trade program that forces gasoline and diesel suppliers to purchase allowances for the carbon emitted by their fuel products.

A 2018 study of California’s cap-and-trade program found that when the allowance price is set to $15 per metric ton of carbon, it adds about 13 and 14 cents per gallon to the cost of gasoline and diesel, respectively.

In effect, the TCI is a new tax on gasoline and diesel that would hurt Maine’s most vulnerable citizens.

More than 166,000 Mainers who live in poverty cannot afford a new gas tax, which currently stands at over 30 cents per gallon.

Combined, the state’s existing gas tax and the TCI would account for nearly one-fifth of the price you pay at the pump.

About Maine Policy Institute

Maine Policy Institute is a 501(c)3 nonprofit, nonpartisan organization that conducts detailed and timely research to educate the public, the media, and lawmakers about public policy solutions that advance economic freedom and individual liberty in Maine.

Recommended for you

Comments