Notice of Introduction for House Bill 1577 - Update: 10 Year Analysis Complete

Office of the Governor / Office of Financial Management sent this bulletin at 05/03/2021 11:35 AM PDT

Office of Financial Management

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HB 1577, titled AN ACT Relating to meeting the greenhouse gas emissions targets established in Engrossed Second Substitute House Bill No. 2311, chapter 79, Laws of 2020, and creating a tax and a temporary bond program to fund transportation investments and projects that reduce greenhouse gas emissions, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

   Carbon Pollution Tax

 

2022

$0

2023

636,200,000

2024

1,607,700,000

2025

1,761,900,000

2026

1,862,000,000

2027

1,963,100,000

2028

2,081,700,000

2029

2,217,600,000

2030

2,347,800,000

2031

2,480,500,000

 

Total:

$ 16,958,500,000

 





Department of Licensing:
Sec.3 adds an additional tax on carbon emissions of $25 per ton of emitted carbon beginning July 1, 2022 and increasing 5% in each following year. DOR will be responsible for the collection of this tax. Therefore, there in no direct carbon revenue impact. DOL collects revenue from existing fuel taxes. DOL assumes that increased fuel prices resulting from the carbon tax will decrease total sales of transportation fuels in the state and result in an indeterminate decrease in collected fuel taxes.
 



Ten-year projection prepared in consultation with the following agencies:

Department of Revenue
Department of Licensing


Bill sponsors and contact information:

Representative David Hackney, Prime Sponsor
Democrat
(206) 490-0914
David.Hackney@leg.wa.gov

Representative Emily Wicks
Democrat
(425) 903-8186
WICKS_EM@leg.wa.gov

Representative Alex Ramel
Democrat
(360) 786-7970
alex.ramel@leg.wa.gov

Representative Debra Lekanoff
Democrat
(360) 419-5266
LEKANOFF_DE@leg.wa.gov

Representative Gerry Pollet
Democrat
(206) 307-0409
gerry.pollet@leg.wa.gov




Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp