Baker drops out of TCI, admitting initiative ‘no longer best solution’ for state

Gov. Charlie Baker has pulled the plug on a regional climate initiative that would have capped tailpipe emissions and was projected to hike gas prices at a time of record inflation, admitting the multi state-deal is “no longer the best solution” for Massachusetts.

“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,”  said press secretary Terry McCormack in a statement.

Baker’s announcement comes a day after Connecticut Gov. Ned Lamont announced he was dropping out of the initiative, as well.

“It’s going to be a tough rock to push when the gas prices are so high,” Lamont told the Connecticut Mirror.

“Look, I couldn’t get that through when gas prices were at a historic low,” Lamont said.

Baker’s office pointed to the dwindling support of other states for the deal. But, McCormack also said the infusion of billions in new federal infrastructure cash also played a part in Baker’s decision.

“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,” McCormack said.

The regional partnership initially sought to cap carbon emissions in 13 jurisdictions from Maine to Virginia. But many state legislatures have expressed a reluctance to raise taxes as they emerge from the coronavirus pandemic.

As signs of trouble emerged with participation over the summer — Rhode Island lawmakers have also yet to act — Baker remained optimistic, saying there was “still time” ahead of the presumed 2023 start of the new program. His Energy and Environment Secretary Kathleen Theoharides, however, identified the “critical mass” needed to participate as at least three states.

TCI opponents say the decision was overdue.

“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,” said Paul Diego Craney, spokesman for the Massachusetts Fiscal Alliance.

Pumped-up gas prices further complicated the deal and critics of the initiative in Massachusetts launched a ballot initiative to block new costs at the pump.

Gas prices in Massachusetts — now at $3.40 per gallon — have climbed 24 cents in one month, according to a recent report by AAA Northeast. Drivers are paying $1.33 more for gas now than they were in November 2020, when a gallon cost $2.07. One Boston station was selling gas for $4.39 per gallon.

Still, the state’s average gas price is 2 cents lower than the national average. Connecticut’s gas prices are approaching a seven-year high.

TCI is a regional cap-and-invest program that aims to reduce vehicle emissions by 2% by 2032. Participating governments expect to generate about $3 billion over 10 years. A minimum of 35% of TCI proceeds are to be directed to “overburdened and underserved” communities, but the deal is vague on how the cash ultimately gets distributed.

from Boston Herald https://ift.tt/3Cvk0Rr