|
February 19, 2018
Dear Friends and
Neighbors,
Many of you have heard about the various carbon proposals pursued
federally and statewide in recent years. These efforts have prompted both congressional
and state legislation, including various executive orders and citizen
initiatives. Our state has not yet approved a carbon or climate policy, but Senate
Bill 6203 (titled “Reducing carbon pollution by investing in rural economic
development and a clean energy economy”) is advancing through the legislative
process and could come to the Senate floor for a vote in the near future. In
preparation for this bill coming up for a vote, I am working hard to analyze
the proposal, understand its impacts, and collect feedback. I have never supported
a carbon tax, but I would like to better understand an issue like this and
thoughtfully consider its impacts before voting.
How would the
carbon tax work?
As
proposed, the tax would begin on July 1,
2019 at an initial rate of $12 per metric ton of carbon emissions.
Beginning July 1, 2021, the proposed tax increases by $1.80 per year until the
rate is $30 per metric ton. The tax is not specifically on gas, but on carbon –
across all sectors. Fortunately, here in the 12th District, we get our power
from renewable, carbon-free hydropower and are the owners of our hydropower
system. This means that the tax would not adversely impact our electric rates. Some
also believe that if a tax is applied on carbon-related electricity (like coal
and gas generation), our carbon-free generation might actually increase in
value over time.
Should SB 6203 pass,
the cost of vehicle fuel
will increase in our area beginning in 2019. Fuel costs are estimated
to rise
10 cents per gallon, increasing less than 2 cents per year thereafter.
This is estimated to cost the 12th District residents as much as $8
million per year (some estimates are much lower). On the other hand,
Section 404 of
the bill (see below) is estimated to benefit our area by at least $8
million
per year. The bill also provides a multitude of grant opportunities that
our
region could compete for and receive, as well as exemptions for some
industries
but not all. For agriculture, on-farm gas and diesel is exempt from the
proposed tax, but the fuel for the short-hauls (from orchards to packing
sheds, for instance)
and for the long-hauls (from packing sheds to ports) is not currently
exempt. Other “trickle-down” impacts of the carbon tax could translate
to
increased costs for goods and services as well.
Where would the
revenues go?
The revenues generated would be collected by the state
Department of Revenue, deposited into the Carbon Pollution Reduction
Account, and invested as follows:
50% - Energy Transformation
Account (grants for clean energy projects)
- Grants
awarded by the Department of Commerce for projects and incentive programs that
reduce greenhouse gas emissions, industrial energy efficiency, clean transportation, and energy
efficiency.
-
30% deposited
in a “Clean Transportation Account”:
--85%
to incentivize alternative fuel vehicle credits, projects that reduce
single-occupancy vehicle trips, and increase transit ridership
--15% to
support electrification of transportation in rural communities and investments
to support energy efficiency and conservation measures
20% - Water and Natural Resource
Resilience Account (grants, loans, investments)
-
50% (10% of total revenue) to the
Department of Ecology for grants and loans for water-related projects, including
storm water projects, flood risk management, water availability and
fish barrier fixes
-
50% to the Department of Natural
Resources for natural resources projects
--25% for wildland fire prevention and
activities to reduce risk of wildfires
--75% for forest health (thinning, prescribed fire, and fire prevention)
15% -
Transition Assistance Account (subsidies and assistance)
- Funds to low-income households for increased energy prices (energy subsidies, energy efficiency and
weatherization) and reductions in vehicle licensing fees
-
Assistance program for eligible displace fossil
fuel-related industry workers (training and education costs, and job placement
services)
- Low income relief on certain vehicle
registration and license fees
15% - Rural Economic Development
Account (infrastructure expansion)
- Assistance to rural communities
for expansion of broadband services
- Funding for the State Board for
Community and Technical Colleges to establish two Centers for
Excellence
-
$30 million for deployment of
broadband infrastructure in rural areas
What about the
impacts of climate change?
According to a description by the Municipal
Research Service Center:
“The concern about climate
change has been widely recognized on a global, national, and regional
level. ‘Global warming’ refers to increases in global temperatures resulting
from an accumulation of greenhouse gases in the atmosphere. Greenhouse gases
include carbon dioxide, methane, and chlorofluorocarbons. These gases trap the
sun's heat as it is radiated from the earth, and prevent it from escaping back
into space. State and local governments are addressing climate change in their
plans and policies and starting to take actions to reduce greenhouse
gases.” Click here for more information.
As your State
Senator, I have heard from many constituents across the philosophical spectrum on
the topic of climate change. I try hard to
listen and balance the diversity of interests across our district when making
decisions relating to this issue. While I personally do not have a strong
opinion on either side of this question, I do know greenhouse gas emissions are global and
any policy, in my opinion, shouldn’t have the effect of just shifting
emissions to another state. Such an approach may reduce our own state’s
emissions, but not our national or global emissions. The bill sponsors are
aware of this concern. I do believe that this proposal would reduce emissions
in our state and could
result in environmental benefits. The proposal alone, however, is not likely to
make a significant reduction in global emissions unless the United States and
other countries (like China, India, and Russia) also take steps to reduce their
emissions.
Would our area
receive a portion of the revenues?
Yes. It is reasonable to
expect that entities in the 12th District will be eligible to compete
for and receive various grants, loans, and other
funding included in the bill. Our area also has large portions of land
that
could receive forest health funding and wildland fire protection
benefits. Additionally, I was able to successfully make the case to my
colleagues in the Senate that areas like North Central Washington should be
recognized in the bill for their leadership in clean energy. This could be done
by directing a portion of the revenues back to areas of early achievement to assist in electrification of their transportation systems. Under
Section 404, the 12th District would receive approximately $8 million
annually for rural electrification projects and energy efficiency
measures for
public entities, utilities, public transit, and private entities. (These
types
of grants could help convert Link Transit and local school bus fleets to
an
all-electric system or eventually improve technology for short-haul
agriculture
powered by our own home-grown clean energy.)
Concerns expressed by
local leaders
I pride myself on open and thoughtful communications and welcome
responses from our community. A few prominent entities have expressed opposition
to the proposal, which you can view in the letters from the Chelan County
Commissioners and Wenatchee Valley Chamber of Commerce. Last Saturday, I met
with elected officials, members of Building North Central Washington and others to discuss this legislation. Many
of those attending, including Building North Central Washington and Douglas
County Commissioners, expressed strong opposition. Chelan PUD has not yet taken
a position on this bill. Some elected officials in attendance expressed concern about the
likelihood of the bill passing in some form given our Democratic-controlled
Legislature. Others expressed concern about the possibility of an initiative
that, if approved, could result in a worse outcome.
Links to more
information
Take my 5-minute
survey to share your thoughts
I would like to provide you an opportunity to share your thoughts directly with me. I also encourage you to communicate with your local elected officials so that they know your opinions on this issue. Having a thoughtful and respectful community dialogue on public policy is healthy for us all. I appreciate your taking the time to review this information and look forward to hearing your thoughts.
Click here to take my survey. Your responses will be anonymous.
Thank you again for the opportunity to serve as
your 12th District state senator.
Sincerely,
Brad Hawkins
State Senator
Brad Hawkins
12th Legislative District
E-mail:
brad.hawkins@leg.wa.gov
Website: senatorbradhawkins.org
107 Newhouse Building
- P.O. Box 40412 | Olympia, WA 98504-0412
(360) 786-7622 or Toll-free: (800) 562-6000
| 
