Washington Supreme Court takes on Farm Bureau’s fuel suit
Published 9:04 am Monday, April 7, 2025

- A truck carries cargo on Interstate 5. If a truck carries farm goods, the fuel is supposed to be exempt from cap-and-trade taxes. (Don Jenkins/Capital Press)
The Washington Supreme Court has agreed to consider the Washington Farm Bureau’s claim that the Department of Ecology shirked its duty to shield farmers from cap-and-trade taxes on fuel.
The high court’s decision to take the case resurrects allegations that Ecology failed to follow the Climate Commitment Act. A lower court dismissed the Farm Bureau’s suit.
Justices Debra Stephens, Charles Johnson, Mary Yu and Barbara Madsen decided unanimously at a conference April 1 to hear the Farm Bureau’s appeal. A hearing date has not been set.
The case stems from a promise by legislators that cap-and-trade’s tax on fossil fuels would not apply to fuel used on farms or to transport farm goods. The promise was easier to make than it was to do.
Cap-and-trade has cost farmers millions of dollars in higher fuel costs, even though lawmakers intended to exempt farm fuels, according to the Farm Bureau. ”We hope the court will uphold that intent,” Farm Bureau President Rosella Mosby said in a statement.
Some fuel suppliers and distributors have found ways to subtract the tax from fuel delivered to farms or sold at cardlock stations. But the Farm Bureau says that still leaves farms, usually small ones, paying cap-and-trade taxes at retail stations. “The Legislature intended the CCA to apply equitably to all farmers and ranchers,” Mosby said.
Ecology argues the CCA didn’t actually exempt farmers from cap-and-trade taxes. Fuel suppliers pay cap-and-trade taxes originally and it’s up to them to claim the exemption, according to Ecology.
The Supreme Court is expected to address whether Ecology erred by making the exemption for farm fuels voluntary, rather than mandatory.
Thurston County Superior Court Judge Chris Lanese dismissed the Farm Bureau’s suit last summer, with no other comment than he agreed with Ecology.
The Farm Bureau appealed directly to the Supreme Court. “Only this court has the final say as to what the Climate Commitment Act agricultural exemption means and whether Ecology’s optional exemption program complies with the law,” the Farm Bureau argued.
The Farm Bureau temporarily paused its appeal to see what lawmakers would do, but has been disappointed so far.
House Bill 1912, moving through the Legislature, would direct Ecology to compile a directory of fuel suppliers selling tax-free fuel to farms.
The bill also would clarify that farmers can apply for partial refunds for cap-and-trade taxes paid on kerosene, propane and natural gas, as well as gasoline and diesel.
Most farm groups represented in Olympia support the bill, but the Farm Bureau says it falls short of fixing the problem. The Farm Bureau favors on-the-spot discounts for farmers who show the proper paperwork at gas stations. The idea has not been subjected to a hearing.