Baker pulls the plug on the Transportation Climate Initiative

Early July 4th traffic at 1PM on Route 3 southbound in Norwell on Thursday July 1, 2021 Greg Derr/The Patriot Ledger
Early July 4th traffic at 1PM on Route 3 southbound in Norwell on Thursday July 1, 2021 Greg Derr/The Patriot Ledger
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BOSTON – After years of touting a multi-state compact to reduce transportation sector carbon emissions as "critical" to achieving environmental goals in Massachusetts, the Baker administration has effectively scrapped its participation and declared the program "no longer the best solution."

Gov. Charlie Baker had long been one of the most vocal proponents of the Transportation Climate Initiative, touting it as an essential component of the state's effort to rein in the largest source of greenhouse gas emissions.

But expected impacts on gas prices have caused many to shy away from the compact and with support for the compact in other states crumbling or simply failing to materialize, Baker's office signaled on Thursday that it would pull the plug.

"The Baker-Polito administration always maintained the commonwealth would only move forward with TCI if multiple states committed, and, as that does not exist, the transportation climate initiative is no longer the best solution for the commonwealth's transportation and environmental needs," Baker press secretary Terry MacCormack said in a statement.

"At the same time, the new federal infrastructure funding package, American Rescue Plan investments, as well as tax revenue surpluses generated by Massachusetts' strong economic recovery make the commonwealth better positioned to upgrade its roads, bridges and public transportation systems, while also making investments to reduce transportation emissions, deliver equitable transportation solutions and benefits and meet the state's ambitious climate goals," MacCormack added.

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The administration's decision comes less than a year after Massachusetts, Rhode Island, Connecticut and Washington D.C. – already a smaller contingent than the 13 governments that participated in discussions about the program – signed on as initial Transportation Climate Initiative members.

Baker's announcement follows that of Connecticut Gov. Ned Lamont, who on Tuesday said he did not believe he could get legislative support for the multi-state compact.

The Transportation Climate Initiative's demise represents the second major blow to clean energy efforts this month after Maine voters rejected a transmission project that Massachusetts has been counting on to draw clean hydropower from Canada.

It also stands as a victory for opponents of the program, including Republican gubernatorial candidate Geoff Diehl, of Whitman, who could face off against Baker in a primary election next year if the governor decides to seek a third term.

Some Republican leaders, such as Diehl and state Rep. David DeCoste, of Norwell, have been seeking a potential November 2022 ballot question to undermine the state's participation in the Transportation Climate Initiative.

Since the early days of Transportation Climate Initiative discussions, the planned cap-and-invest program faced vocal opposition from groups such as the Massachusetts Fiscal Alliance, which argued that its impact on fuel costs would harm consumers more than backers anticipated.

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"TCI is a regressive gas tax scheme that would have hurt middle class and the working poor the most. It's such wonderful news to see that Massachusetts families will not be forced to endure the economic hardship TCI would have imposed upon them," MassFiscal spokesman Paul Craney said in a statement celebrating the Baker administration's announcement.

The Baker administration will now face increased pressure to roll out backup plans for fulfilling renewable energy needs and cutting greenhouse gas emissions without the Transportation Climate Initiative, particularly with interim targets looming along the road to achieving net-zero emissions by 2050.

Sen. Michael Barrett, who co-chairs the Telecommunications, Utilities and Energy Committee, said Thursday that the decision is a "major setback" even if it does not come as a surprise.

"The collapse of the centerpiece of our climate transportation strategy calls for the governor's immediate attention and some very aggressive substitutions," he said. "Climate isn't going to give us a pass because Plan A collapsed. That's not the way this works."

Backers of TCI, which the Baker administration was leading through its environmental secretariat, envisioned a regional program capping vehicle emissions and allowing fuel suppliers to purchase allowances for carbon dioxide their products would emit.

When the founding coalition launched last winter, members set an initial target of reducing carbon emissions 26% by 2032. They estimated that shift would add 5 to 9 cents to the price of a gallon of gas and generate more than $366 million in revenue for participating governments, which could then be invested in clean transportation and energy improvements.

With a sizable pot of money, the Baker administration appears confident that it can invest to help cut emissions and advance clean energy in other ways.

Massachusetts is poised to receive at least $10 billion for transportation infrastructure under the bill President Joe Biden signed, according to Baker's office, combined with billions more in American Rescue Plan Act money.

The state committed to procuring 5,600 megawatts of offshore wind through projects such as Vineyard Wind, and the administration has also targeted significant incentive programs to speed up adoption of electric vehicles.

Michael P. Norton contributed reporting.

This article originally appeared on The Patriot Ledger: Baker pulls the plug on the Transportation Climate Initiative