By Mei Butler, EAN Data Manager

November 2021

EAN is pleased to share this Research Brief, “Examining the Implications of the Transportation & Climate Initiative for Vermont.” This release corresponds with the newly-formed Network Action Team, Benefits of the Transportation & Climate Initiative for Vermont. Its purpose is to examine the benefits and costs of Vermont joining the Transportation & Climate Initiative on Vermont households.



The Transportation & Climate Initiative Program (TCI-P) is a cap-and-invest program designed to reduce pollution from on-road gasoline and diesel fuels, while generating a new source of funding for clean and equitable transportation investments. The intent of TCI-P is to improve the overall transportation system while reducing overall transportation costs. Potential benefits include building out electric vehicle charging infrastructure, implementing income-based incentives for cleaner vehicles, and making investments in clean and convenient transit options. 

While there are many potential benefits to consumers, there are also potential costs as a result of TCI-P. TCI-P revenue would be collected from fossil fuel suppliers who would be obligated to purchase allowances for their pollution coming from their fossil fuel sales. However, the extent to which TCI-P compliance costs may be passed to consumers is currently unknown. A key question related to Vermont’s participation in TCI-P that this research brief will try to address is: what are the potential cost implications for Vermont gasoline and diesel consumers as a result of the program? Data shows that in the first year of program implementation, TCI-P would result in an average additional cost per household ranging from $21 to $29. On average, households spend $1200 – $1600 per year on transportation fuel, so the projected additional cost from TCI-P would be marginal compared to total fuel costs. Additionally, 50% of the potential total additional cost of TCI-P would likely be borne by out-of-state consumers and households making $100,000 or more per year.


The Research Brief is available to view and download below.

Proportion of total TCI cost, by income and location
The projected cost per household in VT as a result of TCI