If one state legislator gets her way, motorists in Washington state will soon receive an annual payment to offset increased gas prices spurred by new climate law.
President Joe Biden has made climate change and the green energy transition a focus of his administration by passing laws like the Inflation Reduction Act that designates $369 billion toward America's transition. The administration also has taken smaller steps to reduce the nation's carbon footprint, such as establishing stricter regulations for gas stoves and dishwashers.
States have followed suit, and some have started to implement their own legislation to offset the negative impacts of climate change. Washington is one of the latest states to implement a cap-and-invest program called the Climate Commitment Act, which requires businesses that emit more than 25,000 metric tons of carbon a year to pay for each metric ton.
Companies that exceed the amount are required to bid on a state-issued climate permit at an auction occurring four times a year, and those that do not comply face a fine of $50,000 per violation per day. The program is estimated to collect $1 billion in revenue and went into effect at the start of 2023.
Money collected from the companies—which include oil refineries and businesses like BP, Tyson and Boeing—will be directed toward environmental programs in the state. However, companies are warning that the new costs could be reflected in increased prices of their products, including at gas stations. That means that penalties could be borne by taxpayers while the state funnels the money into environmental programs.
One Washington legislator is proposing a new bill that would grant up to $200 to Washington families to offset the price increase at gas stations.
Representative April Connors, a state-level Republican lawmaker, announced that she plans to propose the Carbon Auction Relief Payment Program when legislative sessions resume in 2024. If passed, the plan would grant $100 per vehicle owner or $200 per family to offset the increased prices at the pump from the Climate Commitment Act.
"High gas prices are draining the budgets of those who can least afford it," Connors said in a statement, according to a report by the Tri-City Herald. "Many of my constituents have had to cut back on groceries, cancel family trips or make other painful sacrifices. The CAR Payment program is about getting dollars back into their pockets."
Connors told Newsweek in a statement that the 2024 legislative session lasts only 60 days, which is why she introduced the measure now.
"It gives us four months to make the case that we should use this excess revenue to provide financial relief to Washington families," she said. "There's already bipartisan support for using some of the surplus Carbon Commitment Act money to help drivers in Washington. Senator Mark Mullet, a Democrat, has a proposal. While there are key differences between our proposals—his would provide short-term car tab relief—it signals a growing interest in returning this money back to Washington drivers."
Connors added that she would spend the next four months working with colleagues on both sides of the aisle to build support for her proposal.
Gas prices in Washington are already higher than average, according to a gas price mapby AAA. At an average of $5.04 per gallon of regular gasoline, Washington's prices are more than $1 above the national average of $3.88.
And although the state's cap-and-invest program has proved successful by collecting nearly triple the amount of revenue originally expected, Connors said it has added about 50 cents to each gallon of gas, the Tri-City Herald reported.
The increase in prices comes as inflation continues to grip the nation and puts further stress on Americans' wallets as the Federal Reserve continues to hike interest rates, leading to more expensive costs when acquiring loans such as for cars or houses.
If Connors' legislation passes, registered vehicle owners in Washington will receive a payment in July 2024 and a subsequent payment each year when they renew their registration.
Update 9/20/23, 10:04 a.m. ET: This article was updated with comment from Representative April Connors.
About the writer
Anna Skinner is a Newsweek senior reporter based in Indianapolis. Her focus is reporting on the climate, environment and weather ... Read more
To read how Newsweek uses AI as a newsroom tool, Click here.
