Tag Archives: cap-and-trade law

Schoesler says latest cap-and-trade carbon auction will raise fuel prices again

The recent carbon allowance auction held by the state Department of Ecology under the state’s costly cap-and-trade program will mean even higher fuel prices for drivers in Washington just as the summer driving season is about to start, says 9th District Sen. Mark Schoesler.

“Drivers across Washington will pay even more at the pump thanks to the cap-and-trade program,” said Schoesler, R-Ritzville. “Fuel prices typically rise when summer driving season arrives, and this latest auction by DOE will cause trips to the gas station to be even more expensive for both drivers here and those from other states who want to see Washington.”

Today’s release of the results from DOE’s May 31 auction showed that the price for a Washington carbon allowance was $56.01, up from $48.50 in the February auction. It is estimated that the new allowance price will translate to an additional charge of 45 cents a gallon at the pump. This is slightly higher than the estimated 39-cents-per-gallon impact from February’s auction by DOE.

A rough estimate for revenue raised in last week’s auction is about $480.8 million for current vintage allowances and about $76.2 million for future vintage allowances. The February auction collected nearly $300 million.

Schoesler said Gov. Inslee’s expensive cap-and-trade program, known as the Climate Commitment Act and approved by Democrat majorities in the Legislature in 2021, is taking hundreds of millions of dollars out of drivers’ wallets and handing it over to state agencies for various spending programs, all in the name of climate change.

“The latest carbon auction by DOE is just another example of the Democrats’ spending spree in Olympia that will affect people throughout Washington. Starting July 1, most workers across our state will also have to start paying an expensive payroll tax to fund a very flawed long-term care program.

“It’s shocking how Democrats actually seem to be proud about taking so much money away from citizens. Olympia needs to stop squeezing even more money out of hard-working taxpayers and instead start respecting them,” added Schoesler.

The report from Ecology’s May 31 auction can be viewed here.

Schoesler says fuel prices already climbing due to Democrats’ new environmental laws

Two environmental laws from the Democratic-controlled Legislature and Gov. Jay Inslee that took effect Jan. 1 are already causing fuel prices in Washington to rise, says state Sen. Mark Schoesler, R-Ritzville.

Schoesler, who represents eastern Washington’s 9th Legislative District, said he was notified by the Washington  Independent Energy Distributors Association. that wholesale gasoline and diesel prices have risen in Washington as a result of the “cap-and-tax” law and the law creating a low-carbon fuel standard. Both laws were passed by the Legislature in 2021 but did not take effect until now.

Schoesler said wholesale fuel numbers he saw this week revealed gasoline prices had increased by 33.06 cents a gallon due to the “cap-and-tax” law and by 1.54 cents per gallon because of the low-carbon fuel standard. Meanwhile, the wholesale price of a gallon of diesel rose by 42.35 cents as a result of cap-and-tax and by 1.46 cents due to LCFS. Schoesler noted heating-fuel prices also have sharply increased in recent days, with more than two months of winter ahead.

“The wholesale fuel prices that I saw clearly show that ‘cap-and-tax’ and the low-carbon fuel standard are forcing fuel prices to increase at eastern Washington gas stations, and western Washington gas stations likely will see a similar hike. This contradicts claims by the governor and some of his allies that ‘cap-and-tax’ and LCFS will cause fuel prices to go up by only a few cents a gallon.

“Ever since these two laws were passed by the Democrats and signed by the governor, I’ve warned that they will force fuel prices to significantly increase. Now that these laws have gone into effect, we’re seeing that they indeed are causing hikes in fuel and heating-oil prices. This will hurt nearly everyone – commuters, parents taking their kids places, truckers and delivery drivers, and those working in agriculture. These increases will act like a gas-tax hike, but with no guaranteed benefits for our roads and highways.”