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Proposed ‘Cap and Invest’ Permitting System Will Increase Transportation Fuel Prices for Mainers

Transportation Climate Initiative Draft Agreement Open for Public Comment

FOR IMMEDIATE RELEASE: Tuesday, December 17, 2019

MEDIA CONTACT: Julie Rabinowitz, Director of Policy and Communication, 207-292-2722 ext. 102, Julie@mainepbp.com

AUGUSTA — Upon today’s release of the next step in the implementation of a regional permitting system that will impose new fees on gasoline and diesel fuels, Maine People Before Politics has issued the following statement.  

“The Transportation Climate Initiative draft agreement confirms that this so-called ‘cap-and-invest’ program is in reality a regressive, hidden tax on Maine drivers,” stated Julie Rabinowitz, director of policy and communication for Maine People Before Politics. “It will hit the individuals who live in rural areas, those who commute long distances, and those whose businesses rely on trucks to deliver their goods especially hard.”

She continued, “Maine is unlike the other states participating in the TCI, as we are the most northern state with a largely rural population. Joining a regional program signs away the flexibility we need to adopt programs designed to meet our needs, and instead forces our state to support the priorities of other states like Massachusetts and New York.”

“Furthermore, the restrictions on how the permitting fees can be invested means that when the costs are passed on at the pump, Maine’s rural population will be disproportionately footing the bill for green transportation projects in cities and tourist centers. We urge all Maine consumers and businesses to provide input on the TCI draft agreement released today,” Rabinowitz added.

Public comment on the draft agreement will be accepted through Friday, February 28, 2020, in writing via the online portal on TCI’s website.

States under the agreement will auction off permits that limit the amount of gasoline and diesel fuel to be sold. The revenue generated by the permits, estimated to be $7 billion annually, will be passed to the states to be used “to strategically invest in programs to help their residents transition to affordable, low-carbon transportation options that provide substantial public health benefits, reduce congestion, and increase economic and job opportunities,” according to the agreement. The amount of fuel that can be sold under the permits will drop each year to reduce carbon emissions from transportation fuel.

“The goal of making it more expensive to drive is to encourage people to drive less or switch to greener transportation methods. These are not options many Mainers can afford,” Rabinowitz said.

Participating states will make a decision to commit to the initiative by signing the final MOU in the spring of 2020, with the goal of having the agreement established under the laws and regulations of each state by the end of 2020 and the permitting system in effect as of January of 2022.

The 12 participating states are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia.

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