Our View: Be smart about fuel prices

Published 12:30 am Thursday, July 27, 2023

Washington state has the highest fuel prices in the nation because of its cap-and-trade auctions.

Washington state leaders’ enthusiasm for tackling climate change is admirable, but ought to be tempered by respect for economically struggling residents who must buy gasoline and diesel to get between home and jobs.

Recently, Washington gas prices surpassed California’s, becoming the most expensive in the United States.

Washington’s rise to the top in gas prices coincides with the Jan. 1 implementation of cap and trade, which imposes a fee on carbon emissions from fossil fuels. Oil companies pay the fee but can pass it along to drivers.

Speaking of cap-and-trade fees, California has them, too, but has fallen to the No. 2 position behind the Evergreen State.

Cap-and-trade fees are set at quarterly auctions. Washington has held two auctions so far, raising $857 million for state spending. The carbon fee at the most recent auction was $56.01 per ton, compared to $30.33 in California.

There are a lot of everyday Washingtonians who are picking up the tab for a policy that will raise billions for state coffers and do practically nothing to impact climate change. Our state makes a small contribution to greenhouse gases. While the new carbon fee makes consumers financially responsible for some of the atmosphere-warming gases we produce, it will only make a real difference if it inspires other states and nations to take the same step. So far, there is little evidence this is occurring.

Whether it’s from an embarrassment of riches or an acknowledgement of reality, some cap-and-trade advocates are now saying that Washington’s carbon fees are too high.

State Sen. Mark Mullet, D-Issaquah, said he plans to reintroduce a bill next year to bring Washington’s fees more in line with California’s.

Mullet proposed capping Washington’s fee at no more than 20% higher than California’s.

“Yes, we need to combat (climate) change, but in a way that keeps the state of Washington affordable,” said Mullet, a candidate for governor. “People should be upset. That money is coming out of their pockets at the pump.”

Sen. Joe Nguyen, D-Seattle, the chairman of the Senate Environment and Energy Committee, said legislators could look at ways to bring Washington’s carbon fee more in line with California’s, but Washington won’t back down from cap and trade.

“We’re not going to suspend the program. That’s not a thing,” he said. “We are very passionate about climate policy.”

Oregon lawmakers considered a cap-and-trade program a few years ago, but Republican objections led then-Gov. Kate Brown to try to accomplish climate goals through executive order. One of the concerns at the Legislature at the time was the potential for higher fuel prices, particularly in rural areas.

Sky-high gas prices invite a backlash from voters that could undermine public support for climate solutions. Washington can take leadership positions regarding climate change, but shouldn’t do so by charging up the hill nearly all by itself.

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