Energy Policy

Video: Understanding the Transportation & Climate Initiative


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.

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