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How Initiative 2117 will impact the Climate Commitment Act and carbon taxes

As Election Day draws near, various initiatives and candidates will be on the state ballot.

By Michaela Ely.

There are four initiatives on the Washington ballot this year. One of them, Initiative 2117, aims to repeal sections of the Climate Commitment Act (CCA) directly related to carbon tax credit trading.

Initiative 2117 would also prohibit any state agency from imposing any carbon tax credit trades, according to the Washington State Senate Committee Services.

The CCA is funded by a “cap and invest” program, meaning that emissions limits are set on major polluters and limited emissions permits are released through auction which is administered by the Washington State Department of Ecology. This program aims to gradually decrease greenhouse gas emissions each decade and eventually achieve carbon neutrality by 2050. The goal is by 2030 to decrease emissions by 45 percent from levels measured in 1990, 70 percent by 2040 and 95 percent by 2050, which would achieve net zero carbon emissions.

The CCA aimed to directly invest $3.9 billion over eight years into various industries in the state, as well as an additional $1.4 billion being invested from other state programs, in order to promote cleaner energy and reduce pollution.

The CCA also increased gas prices by 50 cents per gallon and drove up energy costs throughout the state by 40 percent, according to Let’s Go Washington (LGW).

LGW is a political organization that highlights the different initiatives on the ballot for this election year, including Initiative 2066, Initiative 2109 and Initiative 2124. It argues the CCA has resulted in higher gas prices and energy costs through a carbon tax that comes from the carbon auction, leading to the producers of oil and gas passing along the cost to the consumer.

“Climate change legislation is important to me inasmuch as it proposes logical changes that benefit both the environment and people. Policy proposals whose ultimate ends and effects have not been thoroughly examined should not be codified into law, no matter how pure the intent behind them is. To be clear, I am very in favor of a transition to renewable energy sources and the continued combatting of pollution but remain unconvinced that carbon tax credits are the best way of accomplishing this,” UW Seattle student Kate Beardsley said.

The Department of Ecology was sued by the Washington Farm Bureau and Washington Trucking Association in Thurston County in mid-2023, arguing that the exemptions in the cap and invest program made for agriculture were ineffective and lacked planning. The program has been criticized by farmers as proper education and outreach about the exemptions were not thorough. Under the program, agricultural companies were meant to be excluded from the extra costs of carbon pricing, however, the rules surrounding it are convoluted and difficult to navigate, especially as many farmers do not purchase gasoline from wholesale distributors, making tracking for the exemptions more difficult.

The lawsuit was dismissed on July 29 by Judge Chris Lanese of the Thurston County Superior Court. The Washington Farm Bureau and Washington Truck Association have filed an appeal to the Washington Supreme court, reporting that the carbon fees impact consumers through transporting goods through the supply chain, resulting in spikes in retail and food prices.

Infographic summarizing key aspects of Initiative 2117 and the CCA. By Michaela Ely.

Through the CCA, Pierce County was awarded 1.8 million dollars in order to promote energy efficiency in homes through rebates and incentive programs for home electrification. This means replacing gas or other non-electric appliances with electric appliances such as electric stoves and water heaters. Programs like these would cease to be funded if Initiative 2117 were to pass.

“The funds from the CCA go to fund local initiatives, such as $2 million this year to Pierce County to help promote energy efficiency, and other small projects across Pierce County. For people who stand to benefit from these projects, through for instance employment opportunities, new services, or lower costs, would experience an economic impact from the loss of these and other future projects,” Professor of Economics of UWT Dr. Katie Baird said.

The opposing political campaign to Initiative 2117, aptly named No. 2117, argues that repealing the CCA would lead to a loss of funding for programs around the state. They have been endorsed by over 500 organizations, including several Washington tribes, the Washington State Public Health Association and a coalition of local firefighters and small businesses.

Out of 29 tribes, 17 are opposing Initiative 2117 as it would decrease funding for tribal specific projects including the Cowlitz Indian Transit Program, the restoration of Spencer Island by the Tulalip tribe and salmon recovery efforts throughout the state.

Repealing the CCA would lead to a loss in funding for programs including free transit for people under 18, funding for the acquisition of new ferries and funding for hybrid-electric engines for the ferries and major infrastructure projects such as replacing the I-5 bridge over the Columbia River, according to No 2117.

Along with the presidential election right around the corner, the state ballot awaits the attention of Washington voters. Not only is Washington electing a new governor, but there are four initiatives and several other elected positions.

“I would be surprised if many students were well-informed about any of the four initiatives. The Presidential Election is taking up a lot of the room people devote to following what is on an upcoming ballot,” Dr. Baird said. “Moreover, there is a lot on the ballot this fall. In addition to voting for President, we are voting for a Senator, members of the US House, Statewide executive positions, Washington Supreme Court, State House and Senate, County Council, County Treasurer, County Sheriff. Then there are these four state initiatives.”

“To top it off, if you live in Tacoma, there are an additional 6 recommended changes to the City’s Charter that we are voting on. Phew! A lot to be informed about before you vote. So I’d be surprised if very many voters across the state know all that much— other than the typical sound bite— about any of the four initiatives,” Dr. Baird told The Ledger.

The initiatives will impact Washington residents in different ways, provided each of them passes into legislation.?Election Day is Nov. 5, and Washington will start sending ballots to registered voters on Oct. 18. You can register to vote in the state of Washington through the Secretary of State website.