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As Washington's new climate laws take effect, state misleads on cost and impacts

About the Author
Todd Myers
Vice President for Research

Today Governor Inslee was joined by Ecology Director Laura Watson to tout the state’s new climate policies. Here is our statement on claims made during that press conference.


The cost of the climate policies that took effect this week is likely to be high. Worse, the history of the state’s climate policies has been consistently disappointing and the impact of the policies is likely to be less than promised.

To effectively address the risk from climate change, we need to give power to people, not politicians. Political efforts have repeatedly failed. Meanwhile, individuals and businesses, empowered with technology have found ways to save energy and cut CO2 emissions in ways that are effective and sustainable.

Ecology staff admit gas prices will go up

The governor has repeatedly claimed that the new CO2 tax and the low-carbon fuel standard would either not increase prices or would add “only pennies” to the cost of gasoline. Analysis from the Department of Ecology shows this is not true.

In California, where the price of permits in their cap-and-trade system has been about $26 per metric ton. The California Legislative Analyst’s Office estimates that has added about 23 cents per gallon. The Department of Ecology set the minimum price for permits at $22, indicating a similar increase. And early indications are that Washington’s permit prices will be much higher.

The Department of Ecology claims gas prices will increase only 5 cents per gallon. That study, however, uses a methodology rejected by economists and results in absurd claims, including that the CO2 tax will cause natural gas prices to go down. This is simply not credible and if Ecology staff believe this is true, they should explain how increasing taxes causes prices to go down.

On top of those costs, the low-carbon fuel standard will start small but will increase gas prices by about 19 cents per gallon by 2031.

 

Ecology Director misleads on “gas tax”

The Department of Ecology is also being intentionally misleading on how the CO2 tax will impact gas prices. When asked whether the cost of CO2 permits would result in a “tax increase on gasoline,” Ecology Director Laura Watson said, “there is no gas tax.” This intentionally conflates a gas tax – which has a specific, legal meaning – and a tax on gasoline like the CO2 tax. The Director hopes reporters and the public don’t catch the word game and believe it won’t impact gas prices.

 

Washington’s climate policies are failing

Washington’s climate policies have been ineffective since Governor Inslee took office and state CO2 emissions have increased almost every year. Agency staff highlight progress on per capita CO2 emissions, but Washington’s per capita CO2 emissions have consistently increased and are now higher than Florida’s.

In an interview with Austin Jenkins last year, the governor himself admitted state climate policies were failing. Now he and staff at the Department of Ecology claim the policies are working as planned.

Claiming simultaneously that our policies are working as planned while emissions continue to rise is not credible. These claims are about politics, not reality.

 

Washington’s consistent failures on climate change show it is time for a change and that doubling down on failed, government-run policies is a recipe for climate failure.

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