REI, Microsoft Rallying Companies to Support Washington’s Proposed Carbon Fee

by Nithin Coca (Sustainable Brands) Next month’s election could potentially be historic for Washington State, where voters will have the choice of enacting the first-in-the-nation carbon fee — a concrete measure to reduce greenhouse gas emissions in the state. Measure 1631 has the support of several prominent Washington-based businesses including REI, Expedia, Microsoft and Northwest Energy, and over 100 businesses in total.

If passed, I-1631 would enact a carbon emissions fee of $15 per metric ton of carbon, starting in 2020, with this fee increasing by $2 annually until the state's greenhouse gas reduction goals are met. Revenue from the fee would be used to fund various environmental programs and projects, and provide support to communities that might be adversely impacted by rising energy costs in the short term. It could also raise up to $2.3 billion for clean energy investment by 2025.

Two years ago, a proposed carbon tax was soundly defeated in the state. That bill faced several challenges, not to mention real divisions within the environmental community and lackluster support from business and labor entities.

This time, things are different — partly because the bill is designed as a fee, rather than a tax; and the fact that it will reinvest funds towards clean energy and other environmental initiatives. But another big reason is the reality that since 2016, calls for action on climate change have only gotten louder and more urgent, most recently epitomized in the latest report from the Intergovernmental Panel on Climate Change(IPCC) that says we only have 12 years to reduce emissions or face a climate change catastrophe.

Of course, not all businesses are on board. The big outliers are, not surprisingly, large out-of-state fossil fuel companies, who are putting millions into opposing the bill. According to Seattle-based news outlet The Stranger, these out-of-state interests — under the banner of the Western State Petroleum Association — have raised more than twice as much as the initiative's backers. This makes local business support even more important.

Washington is a vote-by-mail state, so voters can already decide on the future of I-1631. Many eyes will be on the results, because if Washington passes a carbon fee, it’s likely only a matter of time before other states follow. READ MORE

Excerpt from Axios: Why it matters: If voters approve a ballot initiative this November imposing a fee on carbon dioxide emissions, it would reinvigorate liberal leaders despondent over Trump’s anti-climate change policies. If the measure fails, it’ll reinforce a prevailing notion that carbon prices are politically unpopular.

1. Trump: Washington Gov. Jay Inslee, a Democrat flirting with a 2020 presidential run, says a vote against the proposal is a vote for Trump’s anti-climate change positions. That’s a leap in logic, but it could be effective messaging to discontented voters in the mostly blue state of Washington.

2. Broad coalition: Organizers of the proposal have convened a coalition larger and more progressive than the last effort. Backers include Microsoft co-founder Bill Gates and an array of environmental groups.

3. Moneyed opposition: Washington is America’s fifth-largest refining state, so it's not surprising opposition is coming largely from petroleum companies. The industry was mostly neutral on the 2016 proposal, reflecting that measure’s more conservative and industry-friendly cred, but now opposition is ramping up.

4. Policy uncertainty: The proposal doesn’t get into details about how the money would be spent other than dividing it into general categories. The policy authors say those details will be filled in upon passage. Experts worry it could lead to unintended consequences, political favoritism and/or no actual emission reductions.

What’s next: If it passes, expect other states to replicate it, Rabe says. If it doesn’t pass, Inslee says he’ll keep fighting — in the state legislature and at the ballot box. He might even pursue it from the White House, if he follows through with a 2020 run. READ MORE