Inslee defends cap-and-trade, plans more climate bills

Published 5:30 pm Monday, December 11, 2023

Washington Gov. Jay Inslee surrounded himself with children Monday as he defended cap-and-trade, the centerpiece of his administration’s climate policies but targeted for repeal by a voters initiative.

Inslee called forth youth from the crowd of supporters that provided the backdrop as he outlined his 2024 legislative climate agenda at a community center in Seattle.

The children shouldn’t see all the trees burned down and have their lungs ruined by smoke, but should be able to ride electric buses and have their parents receive subsidies to pay electric bills, Inslee said.

“These kids deserve those things, and they deserve the Climate Commitment Act that’s going to give them a habitable future,” he said.

The Legislature convenes for a 60-day session Jan. 8. Inslee and other Democrats said they will introduce a bill to hold oil companies “accountable” for fuel prices.

Democrats will also try again to push through a bill to prohibit Puget Sound Energy, the state’s largest utility, from hooking up new natural gas service to homes and businesses.

“If Washington state lasts 500 years, people will look back at this year and this session of the Legislature and this great stride forward as our finest hour,” Inslee said.

The Inslee administration will also propose changes to cap-and-trade to make Washington’s program compatible with a joint program operated by California and Quebec.

The Inslee administration touts linking with California as a way to hold down energy costs, though a merger wouldn’t happen until 2025 at the earliest.

Before then, Washington voters may have a chance to affirm or repeal cap-and-trade. Let’s Go Washington is gathering signatures to qualify an initiative for a November 2024 vote.

Sen. Matt Boehnke, R-Kennewick, said he supports renewable energy projects, but not cap-and-trade. The state already was requiring electric utilities to phase-out fossil fuels before cap-and-trade passed, he said.

“A lot of people are saying we need to repeal (cap-and-trade) and go back to the drawing board,” said Boehnke, a member of the Senate Environment and Energy Committee. “I think we should repeal it.”

Cap-and-trade is adding about 50 cents a gallon to gas, according to an estimate based on carbon emissions. Washington has the third most-expensive gas in the U.S., behind California and Hawaii, according to AAA.

Asked about the costs to motorists, Inslee summoned the children and said they will benefit, especially when they are 72 years old, his age. “I’ll stand on that and argue with anyone until the cows come home,” he said.

Inslee blamed oil companies for high pump prices. “They have been whipsawing us with these ridiculous gas prices. They have been standing in the way of progress. They are an artifact of a bygone era,” he said.

“We’re going to pass a transparency law so we are no longer victimized by the big oil companies,” Inslee said.

Such a bill has not yet been introduced. Washington often follows California’s lead on energy regulations. California this year adopted what Gov. Gavin Newsom called a “price gouging law.”

The law authorizes the California Energy Commission to cap profits and penalize oil companies that exceed the cap. The commission is holding hearings on whether to invoke a cap.

The commission reported California refineries in September sold 901.1 million gallons of gasoline and estimated profits at $342.4 million, or 38 cents a gallon, lower than the gas taxes in California or Washington.

California’s per-gallon taxes on gasoline total 77.9 cents, while Washington’s is 49.4 cents, according to the nonpartisan Tax Foundation.

Fuel prices spike because of supply disruptions, and prices fall as fuel suppliers respond by increasing supplies, according to the Western States Petroleum Association.

In comments to the California Energy Commission, WSPA warned a cap on profits will interfere with market corrections and prolong high prices and fuel shortages.

After calling the oil industry an artifact, Inslee acknowledged, “we’re not ringing down a curtain tomorrow on fossil fuels. We’re going to continue to use fossil fuels for some years to come.”

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