2017 legislative review
approach. Senate Bill 5385 included a nonescalating $ 15 per ton price on carbon and would have exempted imported electricity from the tax. It also would have funded a portion of the state’ s school bus fleet, and allocated the remaining revenue to energy subsidies, fish barriers and stormwater investments. It would not have exempted any energy-intensive and trade-exposed industries. Additionally, Sen. Hobbs’ proposal would have been the first piece of legislation heard this session preventing the state Department of Ecology from moving forward with the Clean Air Rule regulation. SB 5385 died in the Senate Energy, Environment and Telecommunications Committee.
SB 5930 carbon pollution tax
Failed / AWB Opposed
Sen. Guy Palumbo, D-Maltby, proposed several carbon tax measures throughout legislative session. Following a period of thorough solicitation of business input, Senate Bill 5930 was drafted to include economy-friendly policy items new to the carbon-pricing policy discussion. SB 5930 would have set a $ 15 per ton price on carbon increasing 2.5 percent per year, phased in the carbon tax on utilities, and exempted imported power and the electricity used by energy-intensive and trade-exposed industries, biomass, biofuels, and agricultural emissions. Additionally, SB 5930 would have credited 75 percent of the carbon tax back to utilities for clean-energy infrastructure projects, and preempted the state’ s Clean Air Rule. Revenue would have been divided between the Carbon Reduction Solutions Account($ 400 million), stormwater and water storage( 20 percent), forest health and National Guard Fire Suppression( 20 percent), and Carbon Reduction Investment Fund, a capital account intended to buy carbon reductions through clean-energy investments deployed by public and private entities( 45 percent). The Senate Ways and Means Committee declined to hear the bill.
HB 2230 carbon emissions tax for washington’ s natural resources
Failed / AWB Opposed
Although Rep. Joe Fitzgibbon, D-Burien, declined to move his prior carbon tax proposal, House Bill 1646, out of the House Environment Committee, he continued to work on improved draft proposals throughout the special legislative sessions. House Bill 2230 was introduced with just one week left before the end of the fiscal biennium, and thus reflected Democrat budget negotiators’ search for new revenue to fund the state’ s McCleary obligation. HB 2230 proposed a $ 15 per-ton tax increasing at a rate of 7 percent every year either until the state hits its statutory emissions-reduction targets or around $ 120 in year 2047. Like HB 1646, HB 2230 also would have increased the state’ s statutory emissions reduction targets by 60 percent— targeting an 80 percent reduction from 1990 levels in emissions by year 2050. Maritime and aviation fuels would have been exempt, while agricultural and public transportation fuels would have been exempt until 2039. Utilities would have had the tax phased in until 2024, and would have been credited 60 percent of their electricity and 30 percent of their natural gas tax for investment in clean-energy projects.
Revenues from HB 2230 would have been dispersed primarily toward existing and emerging budget-related costs associated with natural-resource activities at the state government level, including an annual $ 200 million Natural Resources Super Account funding current maintenancelevel activities, funding for in-kind water mitigation required by the Supreme Court’ s decision in cite Whatcom County v. Hirst, Futurewise, et al., a Mitigation Tax Grant program to provide financial assistance based on income and marital status, and other water, forest, and energy investments. The Equitable Transition Fund for retraining of displaced workers was scaled down to a continuous appropriation of $ 20 million, and energy-intensive and tradeexposed( EITE) industries were eligible for four- to six-year exemption certificates by the state Department of Commerce. Additionally, Rep. Fitzgibbon allowed for
Amy Igloi Creed of Amy’ s on the Bay, Jim Jesernig of Northwest Industrial Gas Users, and Tim Boyd of Industrial Customers of Northwest Utilities testify before the House Environment Committee.
34 association of washington business