Two years on, Washington state's climate law faces repeal next month

SEATTLE, Washington: Less than two years after it was passed, a law forcing Washington state companies to reduce carbon emissions while raising billions of dollars for climate programs faces a repeal by voters this fall.

Conservatives are gunning for the Climate Commitment Act, which they say has ramped up energy and gas costs in Washington. The city currently has the third-highest gas prices in the nation. The law aims to slash emissions to almost half of 1990 levels by 2030.

It requires businesses producing at least 25,000 metric tons (27,557 U.S. tons) of carbon dioxide, or the equivalent in other greenhouse gases, including methane, to pay for the right to do so by buying "allowances." One allowance equals 1 metric ton (1.1 U.S. tons) of greenhouse gas pollution, and each year, the number of allowances available for purchase drops, theoretically forcing companies to find ways to cut emissions.

Supporters of the policy say a repeal would not guarantee lower costs, and billions of dollars in state revenue for years to come are at stake. Many programs already are or will soon be funded by money from polluting companies, including projects on air quality, fish habitat, wildfire prevention, and clean energy.

Citing the conservative think tank Washington Policy Center, the group behind the repeal effort, "Let's Go Washington", says the carbon pricing program has increased consumer gasoline costs by 43 and 53 cents per gallon.

For months, Let's Go Washington has held more than a dozen events at fuel stations to speak out against what it calls the "hidden gas tax.". Hedge fund executive Brian Heywood bankrolls the group. Last month, at a station in Vancouver, in southwestern Washington, the group lowered gas prices by US$1 for two hours by subsidizing the difference to show what reduced prices would look like.

Since the auctions started in February 2023, the average price at the pump for regular gas has gone as high as $5.13 per gallon, though it has fallen and stood at $4.05 this month. The state's historic high of $5.54 came several months before the auctions began.

Supporters of keeping carbon pricing have showcased the many programs it finances. If the repeal succeeds, however, many of them could disappear, including ones to help Native American tribes respond to climate change, for communities to build clean energy projects, and to address air pollution.

Washington was the second state to launch this type of program, after California. It started with aggressive emissions targets of seven percent annual decreases, set to ease up from 2031 on. Repealing it would sink plans to link Washington's carbon market with others and could be a blow to its efforts to help other states launch similar programs.