SPOKANE, Wash. — Washington state's ambitious bill to curb climate change took effect on the first of the year. Now, companies, consumers and lawmakers are waiting to see exactly what it will cost to emit Co2 in the state.
The Climate Commitment Act (CCA) was designed to reduce greenhouse gas emissions from the state's largest emitters through a cap-and-invest program. However, three months into the landmark legislation, residents claim they are already seeing higher prices at the pump, higher gas bills and more.
Passed in 2021, CCA's goal is to curb statewide carbon emissions by making the state's largest Co2 emitters buy pollution allowances at quarterly auctions. The idea is this will incentivize producers to find and use cleaner energy production methods.
Luke Martland with the Washington Department of Ecology, the agency tasked with implementing the new law, said this law won't have a big impact on gas prices or customer prices.
Critics, however, argue price increases are already happening.
"Well, we've seen prices increase, as I said, nationwide, and in the state. We've all noticed that," Martland said. "But we think that's the result of many factors, including factors that have nothing to do with the cap and invest program."
Martland estimated any gas price increases tied to the CCA will be around 1%-3%. Patrick De Haan with GasBuddy.com said the state hasn't seen anything to suggest the CCA is rising prices.
"Once the first auctions occur, that's when the price will likely start being passed along to consumers, as it will likely cost refineries more to emit fuel or emit pollution," De Haan said.
Todd Meyers with the Washington Policy Institute, a public policy think tank, has been critical of the new law. He claimed consumers are already being hit with price increases.
The first auction happened last week. However, Meyers said producers don't know what to expect, so they're charging more in anticipation of future cost increases.
"In the same way that you do withholding on your paycheck now, so that you have the money available next April 15, they are charging taxes now so that when the tax actually has to get paid to the state they have it on hand," he said.
A KREM 2 viewer reached out stating they've been hit with surcharges for home heating oil. Another viewer who runs a farm south of Spokane claimed his gas and diesel supplier started charging him a fuel surcharge, citing the new law.
"Well, we've had communications and we're in touch with folks like that, also farmers, small businesspeople that had been hit by these surcharges," Martland said. "And, it really causes us concern, but we don't control what the oil companies charge."
Martland believes these early surcharges are not warranted, especially for farming and maritime businesses, which are exempt from the law.
The first greenhouse gas allowance auction took place just last week, raising an estimated $300 million, according to the Seattle Times. That money goes to the legislature, which plans to spend it on clean energy projects and climate programs.
The Department of Ecology told KREM 2 they are reaching out to consumers and fuel suppliers to make sure they know who is covered by the new law and who is exempt from it.
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