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31 Hartford Business Journal | April 19, 2021 | HartfordBusiness.com Transportation & Climate Initiative Program good policy for CT, the planet By Javier Quinones I n December, Gov. Ned Lamont joined leaders from neighboring states in signing a bipartisan agreement to launch the Transportation & Climate Initiative Program (TCI-P). This multistate agreement to reduce harmful air pollution and improve the way we move people and goods around the region is years in the making. Now, the Connecticut legislature can take the landmark step of formally approving the agreement, paving the way for transformative policies to improve the state's transportation system so that we can cut pollution, alleviate inequalities and tackle the climate crisis. Connecticut businesses and residents stand to benefit from transportation solutions that increase green mobility and lead to cleaner air for all. Here at IKEA, one of our core principles is ensuring a better life for the many people. In this case, that better life starts with protecting the home we all share — planet Earth. We are in a moment when we need to be serious about tackling the climate crisis, and transportation is a major contributor to climate pollution. Whatever we do in the next 10 years will write the future of our planet, and if we want to continue living on our planet tomorrow then we must make changes to our habits today. TCI-P is a great first step for Connecticut, as it is expected to cut transportation-related greenhouse gases by 26% by 2032. We know the climate crisis cannot be solved by governmental action alone. That's why IKEA is also committed to doing our part, working to make all home deliveries zero emissions by 2025, and aiming to be climate positive by 2030. Additionally, we are harnessing the size and scope of our global business to launch the IKEA Climate Campaign, aggregating millions of voices from the many people IKEA comes in contact with to urge their governments to take bold and ambitious climate action — just like Connecticut is on the precipice of taking. Improving transportation options is also central to addressing social and racial inequalities. Transportation is the No. 1 source of air pollution in Connecticut, and it disproportionately impacts those communities least responsible for it, including low-income communities and communities of color. Furthermore, in a state where four major cities have disproportionately high rates of households without cars, the accessibility to transit is a major hurdle for so many to get where they need to go. TCI-P is designed to help alleviate some of these painful inequities. The program is projected to bring in $89 million in revenue to Connecticut in its first year, and at least 35% of that revenue will go directly to programs focused on overburdened and underserved communities. Through TCI-P, the state will also create an equity advisory body to monitor the fair implementation of program revenue. Most know IKEA as a home- furnishings retailer, so the concept of "home" is near and dear to our hearts. In keeping with that theme, protecting the home we all share is at the forefront of all that we do. IKEA is advocating for bold, ambitious climate action around the world. Here in the United States, Connecticut can serve as an example by establishing a pathway to lower emissions and adopting policies and incentives aimed at transforming our energy and mobility systems — both key features of our own climate campaign. We urge the Connecticut legislature to pass this agreement to serve as an example to other states, and most importantly, to protect our shared home. Javier Quinones is the president of IKEA Retail U.S. and chief sustainability officer. Lamont's climate change bill helps one crisis, worsens another By Jim Perras T he old proverb, "The road to ruin is paved with good intentions" can be aptly applied to Gov. Ned Lamont's Climate Change Adaptation Bill (House Bill 6441), which would grant municipalities the ability to establish a program to mitigate the impacts of climate change by various means, including the purchase of open space in certain circumstances. To pay for this program, the bill would allow towns to impose a new conveyance tax on the sale of real property valued as low as $150,000. Climate change mitigation is good policy, however, increasing the cost of housing amidst a housing- affordability crisis is not. One would be correct to argue an expenditure that benefits an entire community ought to be borne by all its residents. Unfortunately, in the case of HB 6441, simple logic does not prevail. Instead, the bill selects winners and losers by requiring those engaged in the sale of a home to bear the costs of climate change mitigation while everyone else gets a pass. Proponents might say those moving into a community should assume the cost because they were not around to support previous open space purchases or other mitigation efforts. Proponents might also argue, because new homes contribute to the growth of the community, they are exacerbating the crisis and therefore it is appropriate that they assume the cost. This flawed line of reasoning is akin to asking only parents of school-age children to pay for the construction of a new school. This does not occur because new schools benefit the entire community via higher property values and other secondary benefits. Similarly, the mitigation benefits envisioned in HB 6441 would be communitywide in scope. Aside from the inherent unfairness, it is precisely the wrong time for a new conveyance tax. Connecticut is in the middle of a deepening housing affordability crisis. If passed, Lamont's bill will make it even harder for a family to buy a home in Connecticut. A newly-released U.S. Census report indicates the crisis has already dramatically impacted buying trends. In the past five years, Connecticut has experienced a steep decline in homeownership rates, second only to North Dakota. If passed, HB 6441 will likely worsen this troubling trend. Those seeking newly-built homes would be disproportionately affected by the conveyance tax as real property is often conveyed several times before a new homeowner takes possession of it. A developer will often purchase the raw land, develop it, subdivide it, and sell individual lots to builders who construct the homes and sell them to new homebuyers. The new conveyance would be applied to each transaction with the homebuyer absorbing the brunt of the costs. Fewer families will be able to afford a new home, driving demand down and ultimately slowing the production of new housing. The lack of sufficient housing production will contribute to increasing scarcity, which will, in turn, worsen the housing affordability crisis. And so, the cycle will continue. The homebuilding industry has been busy during the pandemic, thanks in part to Gov. Lamont's designation of the construction industry as "essential." Finally, Connecticut is emerging from a 20-year trend of depressed housing production. Surprisingly, our industry has been one of the few bright spots during the pandemic, helping to prop up the economy by providing new revenue to the state's coffers. But that activity sits on a precarious perch. Builder confidence is beginning to wane as interest rates start to rise, and land scarcity due partially to exclusionary zoning practices continue to drive up the cost of buildable lots. Add to this the exorbitant cost of building materials — lumber is at a 13-year high — and builder' concerns take on new urgency. For all these reasons, we implore the legislature and the Governor to do no harm and to support initiatives that will encourage and foster development, allowing more Connecticut residents to share in the American dream of homeownership. Working together we can help create the generational wealth that is key to closing the equity gap. Please encourage your legislators and the Governor to explore alternative means of funding climate change mitigation efforts that will not contribute to the housing affordability crisis in Connecticut. Jim Perras is the CEO of the Home Builders & Remodelers Association of CT. OPINION & COMMENTARY OTHER VOICES OTHER VOICES Jim Perras Javier Quinones