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NYC Could Reap $600 Million With Car Emissions Fee, Monitor Says

  • Retiree health benefit rule could save $416 million: IBO
  • Independent Budget Office updates annual budget suggestions
Vehicles enter and exit the Brooklyn–Battery Tunnel in New York, on April 19. 

Vehicles enter and exit the Brooklyn–Battery Tunnel in New York, on April 19. 

Photographer: Michael Nagle/Bloomberg

New York City could generate more than a $1 billion a year by imposing an emissions toll on cars and trucks and requiring residency to receive retiree health benefits, the city’s Independent Budget Office said.

The suggested $2.49 toll on tailpipe pollution, assessed at existing bridge and tunnel tolling locations, could raise $596 million, the budget monitor said. The tax, which would need approval from the state legislature, would offset the “social cost” of emissions that contribute to asthma, heart disease and lung cancer, according to the IBO. The Metropolitan Transportation
Authority’s planned congestion pricing system would provide more tolling areas.