Tag Archives: Senate Bill 5126

Republican senators sponsor bill to ensure farmers, other exempt-fuel users receive exemption from Climate Commitment Act

When the Climate Commitment Act was passed by majority Democrats in 2021, creating a “cap-and-tax” program for greenhouse gas emissions that is expected to significantly raise fuel prices, the measure included an exemption for farmers and other groups from paying the surcharge created by the program.

But since the law was implemented by the state Department of Ecology on Jan. 1 of this year, the expected exemption for farm diesel and fuel used by the maritime industry has not taken effect, angering farmers and others who expect to benefit from it.

A pair of eastern Washington Republican senators is sponsoring a bill that aims to fix the problem.

Senate Bill 5728 would develop a process to implement exemptions for farm diesel and other certain fuels under the “cap-and-tax” program. It has been sent to the Senate Environment, Energy and Technology Committee. No public hearing has been scheduled.

“When the Climate Commitment Act was being drafted, we were told famers would receive an exemption and not pay higher fuel taxes. That did not happen,” said the bill’s prime sponsor, 16th District Sen. Perry Dozier, R-Waitsburg. “The Department of Ecology should be responsible for finding a solution to ensure that farmers and the maritime industry are not burdened with the higher fuel costs as a result of the cap-and-tax legislation.”

“After I learned that the farm-fuel exemption had not been implemented, I asked the Department of Ecology why,” said 9th District Sen. Mark Schoesler, R-Ritzville. “DOE officials have blamed “Big Oil” for the lack of an exemption so far. They also say this exemption will be extended this summer, apparently forgetting that farm work goes on well before summer. The exemption on fuel for the agriculture and maritime industries needs to take effect now, not months from now.”

Under the proposal, DOE and the Department of Revenue must create a method to determine the additional amount paid by an end user of exempt fuel, such as a farmer, due to a fuel supplier’s compliance obligation. Compensation to an end user must be paid no later than 14 days after DOE receives an application for reimbursement.

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.

Schoesler opposes Senate panel’s passage of ‘climate commitment’ bill

A Democrat-sponsored “carbon cap and tax” bill passed tonight by the Senate Ways and Means Committee would punish Washington citizens and companies, argues 9th District Sen. Mark Schoesler.

The Ways and Means Committee voted 13-10 to pass Senate Bill 5126. Schoesler, a member of the panel, voted against the proposal.

“This is another bill that would punish people and companies, without any proof of even helping the climate,” said Schoesler, R-Ritzville. “The bill is called the Climate Commitment Act, but I’m afraid 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, except for rural communities, middle-class families or individuals, and small businesses. This is a very unfair, inconsiderate and inconsistent bill to people in the 9th District and other rural districts in our state,” said Schoesler.

Under this bill, the state would set statewide emissions limits. Companies could purchase a “permit to emit” at an auction run by the Department of Ecology. The proposal calls for allowable emissions to decline each year.

“If this bill becomes law, it will tax people to the tune of $500 million just to have a permit to emit,” said Schoesler, “and judging by the 75-page fiscal note for this bill, this ‘cap and tax’ bill is extremely complicated, which is never a good thing for taxpayers.”

Schoesler said when the Ways and Means Committee held a public hearing on the bill, 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.

Senate Bill 5126 now goes to the Senate Rules Committee for further consideration.