It should come as no surprise to anyone that gas prices in Washington are going up. The Climate Commitment Act’s cap-and-trade program went into effect in January, and by June, our state had earned the dubious distinction of having the highest gas prices in the country for the first time ever.
This is no coincidence.
The cap-and-trade program sets a limit, or cap, on carbon emissions statewide. Businesses that generate more than 25,000 metric tons of carbon dioxide a year are required to purchase allowances for their emissions at quarterly auctions held by the Department of Ecology. …
For this program to work, the costs of emissions must rise for everyone, including the cost of gas at the pump. And that’s what’s happening. Even so, the fact that the state’s first two auctions pushed carbon credit prices far above projections is a clear sign of instability in the program and evidence of the need to fix the Climate Commitment Act so it works for both the environment and the economy. …
The governor and some legislators continue to direct blame at employers and accuse oil companies of price gouging. This distracts from the real issue: Washington’s record-high gas prices are largely a result of the way the Climate Commitment Act has been implemented. This is something the business community warned about extensively in testimony, public comment and economic modeling before the program started, and it is something we continue to call on lawmakers to address. Rather than propose new legislation, lawmakers must get serious about fixing the Climate Commitment Act. …
Washingtonians are poised to pay more to live and work in this state. We need honesty and transparency about this from our elected officials, not finger pointing and distracting blame games.
Kris Johnson is president of the Association of Washington Business, the state’s chamber of commerce and manufacturers association.
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