New Study: TCI Costs Higher than Initially Reported

New Study: TCI Costs Higher than Initially Reported, Cost of Diesel Fuel Finally Disclosed

Estimated to Cost Massachusetts Over 9,000 Jobs

The Fiscal Alliance Foundation (the Foundation) today announced the results of a study on the costs associated with implementation of the Transportation and Climate Initiative (TCI) in Massachusetts. TCI is an effort by the administration of Governor Charlie Baker to form a regional gas and diesel tax increase with neighboring states. Thus far, leaders from all surrounding New England states have cast doubts as to their participation, with New Hampshire already withdrawn from the agreement outright. Virginia is the southern most state and their leaders indicated they will not join in 2020.


The study was commissioned by the Foundation and conducted by the Beacon Hill Institute (BHI). The Foundation is an IRS-determined 501(c)3 non-partisan, non-profit organization and its chairwoman is Danielle Webb, Esq. Its website is


TCI claims the cost of gasoline fuel will increase by 17 cents per gallon and will result in a 25% reduction in CO2 emissions. The 25% reduction is derived by a 19% reduction due the current policies in place without implementing TCI and by adding TCI an additional 6% could be achieved under the best-case scenario.  Under this TCI scenario, the increase to the cost of diesel fuel is not disclosed.


The BHI model found if TCI’s goal is to hit a 25% reduction, the cost of gasoline fuel would increase by 26 cents per gallon and the cost of diesel fuel would increase by 52 cents per gallon. The study also found that 9,667 private sector jobs would be lost in Massachusetts and every family would be faced with $738 increase in taxes. The Global Greenhouse Gas (GHG) reductions would not make an impact on the environment. The TCI 25% reduction in 2022 would count for 0.00090% reduction and by 2026 it would only be 0.00083%.


“What the study found here is truly astounding. The cost associated with TCI is magnitudes larger than previously reported. For the first time, we now know how many private sector jobs would be lost, and the increase in taxes it would cost every Massachusetts family,” said Paul D. Craney, a spokesman for the Fiscal Alliance Foundation.


“The most appalling fact that’s been missing by TCI is the price on diesel costs. Now we know a price and it will come with a high cost, which will negatively impact commerce and the transportation of almost all goods in Massachusetts. This would have a significant impact for consumers with virtually no environmental benefit,” said Paul D. Craney, a spokesman for the Fiscal Alliance Foundation.


A full copy of study is available by clicking here.