Washington farmers and truckers have barely touched a $28.5 million pot of money the state set aside to partially refund them for the cap-and-trade taxes they paid on fuel in 2023.

They have claimed $1.86 million, or just 6.5% of the money, the Department of Licensing reported. The department started taking applications Aug. 26. It and farm groups expected the money to go quickly.

“We really felt that way, and that’s what we were prepared for, and that’s not what’s happening,” said Jennifer Clawson, the department’s assistant director of the business and professions division.

Cap-and-trade taxes fossil fuels, but liquid fuels used to produce and haul farm goods are supposed to be tax exempt. Cap-and-trade, however, went into effect without mechanisms to universally apply the exemption.

The Washington Farm Bureau estimated farmers paid between $153 million and $172 million in cap-and-trade taxes in the first 11 months of 2023. Truckers carrying farm goods over highways likely paid more.

Lawmakers set up a $30 million fund to offer partial refunds ranging from $1,000 to $4,500. The Licensing Department took $1.5 million to run the program and planned to send out the money first-come, first-served.

“It did seem like applications came in a big batch at first and then started to slow way down,” Clawson said. “We’re kind of scratching our heads a little bit about what we can do to help.”

Washington State Dairy Federation policy director Jay Gordon said he’s surprised the money hasn’t been claimed. “This is just baffling,” he said. “I think all of us figured it would be gone.”

The Farm Bureau plans a post-harvest push to make their members aware of the rebates, director of government relations Breanne Elsey said.

“The big issue has been harvest. For folks, it’s just a really busy time for them,” she said.

The Licensing Department has tried to get the money out, even contacting farmers to help them finish applications, Elsey said. “I appreciate them for going the extra mile,” she said. “They’ve done a really great job.”

Clawson said the department has recontacted farm groups to remind them about the rebates. Deputy Director Alejandro Sanchez went to a farmers market in Olympia to tell producers.

“Only one or two of them had heard of the program,” Clawson said.

Farmers have outnumbered truckers in filing for rebates by about nine to one. Washington Trucking Associations President and CEO Sheri Call said some farm good haulers paid millions in cap-and-trade taxes.

“I think for some companies because of the (rebate) limit, it’s not worth their time,” she said.

Truckers who fill up at retail stations continue to pay the tax, Call said. “I think in the industry, the feeling is any real relief valve is support for the initiative, 2117.”

I-2117, on the November ballot, would repeal cap-and-trade, the centerpiece of Gov. Jay Inslee’s climate policies. If the initiative passes, refunds will cease once the election results are certified.

The last day for the secretary of state to certify results is Dec. 5. Unclaimed money will stay with the state.

”We’re telling people that it’s use-it-or-lose it, and that would be a really unfortunate loss,” Elsey said.

Applicants can file online or by mail. Applicants need not submit receipts, but must attest they are being truthful about the fuel they bought and the farm goods they produced or transported.

The department has a website, dol.wa.gov/agriculture-support-program, with more information. The application site is: agsupport-wa.submittable.com/submit.