Tag Archives: gas prices

Republican senators question timing, purpose of proposed payments to farm-fuel users

Sen. Mark Schoesler

OLYMPIA… The two state senators who farm in eastern Washington say they’re not sure what to make of a proposed offer of money for farm-fuel users who got stuck paying a surcharge on their fuel purchases because of the state’s cap-and-trade law.

The payments, which could amount to no more than pennies per gallon for many farming operations, are offered in the state Senate’s supplemental operating-budget proposal.

Sen. Perry Dozier

“I don’t know anyone in the agricultural sector who would view this as a solution to the fuel-surcharge issue we’ve been fighting more than a year, since cap-and-trade was fully implemented,” said Sen. Perry Dozier, R-Waitsburg.

“These payments wouldn’t come close to making up for what farm-fuel users have been forced to pay because the executive branch of state government failed to uphold the promise made in the cap-and-trade law – that farm diesel and fuel used by the maritime industry would be exempt from the surcharge this new program would create,” said Sen. Mark Schoesler, R-Ritzville.

Schoesler serves on the Senate Ways and Means Committee, which held a public hearing yesterday on the proposed supplemental operating budget. The budget appropriation doesn’t refer to the payments as rebates or reimbursements, and routes them through the state Department of Licensing – not the Department of Ecology, which is responsible for implementing the cap-and-trade law.

“Are these payments a way for the state to ease its guilty conscience for failing so badly on upholding the promised fuel-surcharge exemption? Does the timing have anything to do with the certification of the initiative to repeal the cap-and-trade law? Are the supporters of cap-and-trade just looking to throw a bone to agriculture? No one who buys farm fuel by the truckload would come up with this,” said Dozier.

Dozier and Schoesler are the sponsors of Senate Bill 5728, introduced in 2023. It would basically force Ecology to develop a process for implementing the promised exemptions. The bill has been ignored, and a task force set up by Ecology during the summer failed to completely resolve industry concerns.

Given that background, the senators were surprised to see a $30 million appropriation, buried on page 564 of the new Senate budget proposal, “solely for payments to support farm fuel users and transporters who have purchased fuel for agricultural purposes that is exempt from the requirements of the Climate Commitment Act… but paid a surcharge or an additional fee.”

The payments would be made by the Department of Licensing to “noncorporate farms” first – a term not defined in the budget bill – depending on annual farm-fuel consumption. The first tier, those using less than 1,000 gallons annually, would receive $600; the second tier, between 1,000 and 4,000 gallons consumed, would get $2,300; and those using 4,000 gallons or more a year would receive $3,400.

“It’s a lame proposal because most farms of any size operate as a corporation,” said Schoesler. “On top of that these tiers make no sense, except they’re consistent with the whole premise of cap-and-trade – or ‘cap-and-tax,’ as it should really be called. This law is about punishing people who use fossil fuel. It’s as though they think there are electric combines down at the farm-equipment dealer.”

Dozier agrees the tiered approach is not realistic. “One tractor pulling a heavy load can go through 25 gallons of fuel an hour. At that rate just one week of 10-hour workdays will blow past the 1,000-gallon threshold.

“It’s not difficult for a farm to go through 30,000 gallons of diesel in a year. Under this proposal, that’s 11 cents per gallon. Adding more tiers based on 10,000-gallon increments would be a slight improvement, but if the intent is to honestly compensate users who have been paying the surcharge, the payments to them should really be gallon for gallon, with no tiers at all.”

The Senate budget proposal also includes $35 million to provide low-income households with energy utility bill assistance. Like the payments proposed for farm-fuel users, those subsidies would be funded with proceeds from the cap-and-trade law, which has enabled state government to rake in about $1.8 billion in the past year from auctioning “carbon allowances.”

“In December the governor proposed using cap-and-trade money to subsidize low-income households. It wasn’t a surprise to also see it in the Senate budget. But this money to pay farm-fuel users feels like something thrown in at the last minute by people who don’t understand agriculture,” said Schoesler.

“This is a pretty responsible budget proposal overall, and I appreciate that Republicans had a fair amount of input about the priorities,” said Dozier, “but it needs some work to be a budget that truly respects the needs of agriculture.”

2024 session week 1 video update

9th District Sen. Mark Schoesler talks about the first week of the 2024 legislative session in Olympia, including his thoughts on Gov. Inslee’s state of the state speech and problems existing in Washington, including education, affordability and public safety.

 

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.”

Schoesler blasts Senate passage of ‘carbon cap and tax’ bill

A Democrat-sponsored “carbon cap and tax” bill passed 25-24 tonight by the Senate would punish Washington citizens and small businesses while letting big corporations off the hook, argues 9th District Sen. Mark Schoesler.

Senate Bill 5126 now goes to the House of Representatives for further consideration. The 2021 legislative session is scheduled to end April 25.

“This is another bill that would punish people and companies by sharply raising gas and diesel prices, without a guarantee that our roads and highways will benefit, and no proof of even helping the climate,” said Schoesler, R-Ritzville. “The bill is called the Climate Commitment Act, but the only thing it will commit Washingtonians to is handing over more of their hard-earned money for an environmental plan that won’t work.”

Schoesler said many residents in his legislative district would not qualify for any of the exemptions from the proposed tax.

“This cap-and-tax bill offers several types of exemptions for foreign-based oil corporations like BP and Royal Dutch Shell, but it would punish rural communities, middle-class families and individuals, and small businesses. This is a very unfair, inconsiderate and inconsistent bill to people in my district and other rural districts in our state,” said Schoesler. “It amounts to a very regressive tax that will disproportionately affect those least able to afford it. If the Democrats really cared about equity, they would not pass this bill.”

Schoesler, a wheat farmer, said the “cap and tax” bill also would have a negative impact on Washington agriculture and would hurt the state’s economic competitiveness.

“Agriculture in our state needs to use a large amount of fuel to produce crops and move those crops to market or to ports to be exported around the world,” said Schoesler. “Farmers and growers are price takers, not price setters, which means they’ll be hurt by higher fuel prices. This bill will be very bad for ag, no question about it. The bill also will make our state less attractive for many large companies to relocate or stay in our state, which means fewer jobs will be created here and jobs will instead move to more business-friendly states elsewhere.”

Under this bill, starting in 2023, businesses producing more than 25,000 metric tons of carbon per year would be required to purchase “allowances” for emissions at auctions arranged by the Department of Ecology. End-user consumption would be included in emissions calculations, meaning refiners would be held responsible for tailpipe emissions. Money from these auctions would go to the state, and would be split between CO2 reduction programs and a transportation-related account called “Forward Flexible.” The price of allowances would grow over time until the state meets arbitrary emissions targets – 45 percent below 1990 levels by 2030 and “net zero” emissions by 2050. The program’s details would be handled by the Department of Ecology. The program is expected to raise about $500 million annually.

“If this bill becomes law, it will raise another $500 million in taxes on hard-working people and businesses just to have a ‘permit to emit,’” said Schoesler. “We have so many people around our state who are trying to get back on their feet after suffering through the COVID pandemic, but this terrible bill would just take more money out of their wallets, all for some far-fetched goal that likely will never be realized.”

Schoesler said a Washington Research Council study of SB 5126 shows it could force gasoline prices to rise by 18 cents a gallon by 2023 and by 30 cents by 2030, with diesel prices increasing 34 cents per gallon by 2030.

“Gas stations in Spokane, Pullman, Clarkston and other border towns will be really hurt by this proposal because drivers will be more likely to fill up in Idaho or Oregon. And the tax revenue raised by this bill would not be subject to the state’s 18th Amendment, which requires gas-tax money to be spent for transportation purposes, so the money raised by this proposal could be spent for any purpose. There’s no assurance of any benefit to our roads and highways.”

Schoesler said the bill also would cause higher energy prices for consumers and businesses alike.

“If this bill becomes law, people likely will see an increase in energy prices if they use natural gas or propane, even electricity,” added Schoesler. “There are many households throughout our state that rely on natural gas or propane for heat or cooking. Many of these families are struggling financially and can’t afford an increase in their energy costs, yet the Senate Democrats voted to jack up these costs anyway. It’s shameful.”

Schoesler, a member of the Senate Ways and Means Committee, pointed out that when the panel held a public hearing on the bill last month, one opponent testified that a 2019 analysis found carbon emissions from oil and gas have actually increased since a cap-and-trade policy began in California.

“It’s scary that our state is trying to emulate something that is being done in California but isn’t working as intended. We should know better,” said Schoesler.

Before the Senate’s approval of Senate Bill 5126, Republicans offered nearly 40 floor amendments designed to improve the bill. Most were rejected by majority Democrats.

Schoesler says agricultural groups oppose ‘cap-and-tax’ bill, contrary to claims by Democrat senator

No one should believe claims that the state’s agricultural industry backs a Democratic senator’s “cap-and-tax” bill, considering how disastrous the proposal would be to this key part of Washington’s economy, says 9th District Sen. Mark Schoesler.

Schoesler cited a recent story in the Capital Press agriculture publication in which reporter Don Jenkins quoted officials with the Washington Farm Bureau, Northwest Agricultural Cooperative Council and Washington’s Cattlemen’s Association. All countered Sen. Reuven Carlyle’s recent claim that the state’s agricultural industry is an “enthusiastic supporter” of the cap-and-tax proposal, Senate Bill 5126.

“When you have officials from these important ag groups all saying this claim by Senator Carlyle is false, it really makes you shake your head,” said Schoesler, R-Ritzville, who runs a wheat farm and is a fifth-generation farmer. “As someone who serves an agricultural district, I’ve been in touch with a wide section of people in this sector. At best, they are apprehensive about this proposal. At worst, they are flat-out against it. People need to remember that farmers and growers are price takers, not price setters. If this bill becomes law, it will drive up food prices, which is bad news for consumers, especially those on a small income.”

Senate Bill 5126 has been placed on the Senate’s voting calendar after being approved along party lines by the Senate Environment, Energy and Technology Committee, Senate Ways and Means Committee and Senate Rules Committee.

“When Senator Carlyle claimed in Ways and Means that his bill has support from agriculture, he followed it with a mention of reforestation. Trees are definitely an important rotational crop in Washington, but if the good senator from Seattle doesn’t know our agricultural sector is about much more than forestry, I’d encourage him to leave the city and pay a visit to the farms that grow our food and are so important to trade in our state,” Schoesler said.

“The fact that this bill never went to the Senate Transportation Committee, despite the enormous effect it could have on the cost of fuel, clearly indicates Democratic leaders don’t care much about the negative effect it will have on drivers, and on companies that rely on our roads to ship products and goods,” said Schoesler.

People who wish to comment to Democratic leaders on a particular bill can call the toll-free Legislative Hotline at 1-800-562-6000 and share their thoughts.

The 2021 legislative session is scheduled to end April 25.