The Transportation and Climate Initiative (TCI) is a collaborative effort between 12 Northeast and Mid-Atlantic states and Washington, D.C. to reduce climate pollution, improve public health, and invest in better, cleaner, safer modes of travel across the region. One of the policies the initiative is designing is a program to cut carbon pollution from the transportation sector, improve air quality and public health, reduce traffic congestion, invest in transportation infrastructure and public transit, and support economic opportunity and job growth.

Through a cap and invest program, participating states would set a regional declining limit on carbon dioxide pollution, a key greenhouse gas, released through the use of transportation fuels like gasoline and diesel. States would determine a set number of carbon “allowances,” each equal to one ton of carbon dioxide emitted when the fuel is combusted in vehicles. Oil companies or fuels distributors would purchase these allowances at an auction, generating proceeds that would be received by the states. 

Each state would independently determine how to spend its share of the TCI proceeds, which are intended to fund local transportation solutions that benefit citizens and focus intently on providing or improving transport options for poor and marginalized communities, in urban, suburban, and rural settings. 

Learn more about TCI here.