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Published 12:45 pm Friday, April 9, 2021
OLYMPIA — Senate Democrats passed cap-and-trade and low-carbon fuels bills Thursday evening, moving to reduce global greenhouse emissions by 0.1% by 2030.
Republicans said the twin bills will drive up gasoline prices and electric rates, but will have no affect on the climate. The poor and businesses that can’t simply pass along the costs will suffer, Republicans said.
“I think the high cost is going to hit the low-income people and our agriculture people harder than anyone else,” said Sen. Judy Warnick, the top-ranking Republican on the Senate agriculture committee.
The cap-and-trade legislation, Senate Bill 5126, now goes to the House for consideration. The low-carbon fuel legislation, House Bill 1091, passed the House, but the Senate made changes that must be reconciled with the House.
The cap-and-trade bill would require large carbon emitters to gradually reduce emissions or bid for emission permits. The auctions would raise about $500 million a year for the state, according to projections, hauling in money for transportation and environmental justice.
The low-carbon fuel bill requires more biofuels in on-road gasoline and diesel. The financial beneficiaries would be renewable fuel producers, not the state. Republicans ripped the bill as “a gas tax without roads.”
Farm groups oppose both bills because they exert an upward push on energy costs.
Ecology says many factors affect gas prices and that it hasn’t been proven that blending in biofuels raises pump prices. California and Oregon, which have low-carbon fuel standards, report that the polices do increase prices.
“There will be a large fuel tax, whether it’s 10 cents, 20 cents, 57 cents — that’s the truth,” said Sen. Mark Schoesler, R-Ritzville.
Republican Sen. Perry Dozier, an Eastern Washington farmer, said that because everything in agriculture depends on fuel, farmers will be hurt by cap-and-trade and low-carbon fuels.
“This is going to be the poison pill for agriculture — these two bills,” he said.
The bills would give the Department of Ecology authority to implement the two programs.
Writing the rules for cap-and-trade alone would cost $27.3 million over two years and occupy the equivalent of 54.5 full-time state employees, according to a fiscal report.
”We’re handing over the economy to an unelected agency,” Senate Republican Leader John Braun said.
The businesses covered by cap-and-trade emit 56.5 million metric tons of carbon a year. The goal would be to reduce that by 36.4 million metric tons by 2030.
Ecology estimates the low-carbon fuel bill would reduce emissions by 1.8 million metric tons by 2030. That’s about half the greenhouse gases Ecology attributes to manure, fertilizer and livestock burps.
The Paris-based International Energy Agency estimated global emissions in 2019 at 33.1 billion metric tons. Ecology estimates Washington’s emissions at 99.57 million metric tons, or 0.3% of global emissions.
Democrats argued low-carbon fuels will clean up the air. Ecology is unable to say by how much.
Cap-and-trade and low-carbon fuels bill have long been top priorities for Gov. Jay Inslee.
”I want to thank the moral leadership of our governor who cares so deeply about this issue and has been a thought leader as well,” said Senate Environment and Energy Committee Chairman Reuven Carlyle, D-Seattle.
The cap-and-trade bill passed by just one vote, 25-24. Climate activists attack the bill as loophole riddled. Sen. T’wina Nobles, D-University Place, voted for the bill, but said she hoped the House will set harder emission caps.
The low-carbon fuel bill, which passed 27-20, was amended to require at least 25% of the state’s biofuels come from agricultural products. The rule could be challenged as an unconstitutional barrier to interstate commerce.
Schoesler, an Eastern Washington farmer, called the amendment a “silly joke.”
He said it wasn’t feasible for farmers to grow crops such as canola, corn and camelina for biofuels.
“If you’ve ever grown those crops and understand marketing, you just wouldn’t be promoting those ideas as a reason to pass a gas tax without roads,” he said.
Besides cap-and-trade, Senate Democrats are counting on raising the state’s gasoline tax by 9.8 cents a gallon to fund their transportation plan.