b'2023 WPMA State ReportWASHINGTON Independent Energy Distributors ReportMarketers The Climate Commitment Act gave Department of Ecology more than 40 FTEs, and the State is budgeted to earn $1.7 billion dollars Struggle with Capin the biennium. But they do not have the resources to support the agricultural and maritime industries that bring key foods to market and Invest and implement a mechanism to exempt those industries THEY mandated be exempted. Again, with the logic.ImplementationSo, here we are, approaching the final days of the Legislative Session and still no answer. After our Day on the Hill, where we Lea McCulloughand Exemptions gained some momentum from Republicans to try to do some-WA Associationthing this session, we thought we may get a budget Proviso that Executive Director Since January 1stwhen the State ofcould help develop a rebate program as we believe its the strongest Washington launched the Climate Com- and cleanest solution. Sadly, it was voted down. Just last week, mitment Act, which required an immedi- Democrats offered a bill that has good bones, but bad intentions. ate implementation of LCFS and CapA piece of the bill requires that oil suppliers NOT LINE ITEM the and Invest, there have been extensivecurrent cost of CAR and LCFS, and states that its a violation of problems, little understanding of how athe Consumer Protection Act! This would be the one place where gallon of fuel travels through a system,the end users could actually know how much to apply for a rebate and even less relief from the Departmentfor, and know what the program is actually costing. Seems to me of Ecology and State Legislature to fix the problems.that the State of Washington may actually be embarrassed as to the The largest topic of contention is exemptions of CAR (Cap and theactual cost, and doesnt want consumers to KNOW WHAT THEY Rack) to Agriculture, Aviation and Maritime industries. The hardestARE PAYING! While we are required to be transparent in all of our of the three to provide relief to is the Agriculture Community, astransactions, it appears this bill is trying to intentionally hide the distributors have very few mechanisms to offer fuel without thetrue cost of carbon credits to the consumer. Super disappointing. CAR fee, which as of this week was trending at $.57 a gallon.As of the writing of this article, there is no answer to the exemption The Association has worked tirelessly to educate the Department issue. This will develop and move at the speed of light until the end of Ecology, Legislators, and the Governors office on our distribu- of session, and then likely fall silent until next year. If in fact we tion system, the critical infrastructure that we serve, and WHY thisclose the session without a solid and agreeable solution for all par-is going to cost just the Ag community $50 million in surchargeties, Ive heard rumblings of a class action lawsuit against the State directed by this program just in 2023. of Washington. Im grabbing a bag of popcorn for this one. We have been met with some of the most illogical responses, andWho are the real profiteers of the without question shows the lack of understanding of the conse-quences this program created, without even understanding whatClimate Commitment Act?they created. Major Oil Producers were regulated and mandated to comply withSince January 1st,when the CCA started its regulatorythe program beginning January 1st, but the first Carbon Creditperiod, our industry has been under fire for price gouging and Auction was not offered until February 28th. And as a result, thoseprofiteering. Key members from the Department of Ecology stood who support this program pointed price gouging fingers at thein front of a Senate Committee and stated that Major Oil Suppliers Major Oil companies, saying, They dont even have to buy creditswere profiteers and price gougers as they were assumed to absorb yet. Anyone in business realizes that you cant just generate $.44the cost of the program. That was an incorrect assumption. to $.57 cents a gallon in the past tense, and yet our industry wasLets take an HONEST LOOK at who is truly profiteering on apublicly criticized for increasing prices beginning January 1st. Ourgallon of fuel. The State of Washington charges the followingindustry is profiteering and preying on consumers of Washington.taxes on a gallon of fuel:More on that later Our Association has offered several solutions to help both Maritime Washington State Special Fuel Tax at .001/cents per gallonand Agriculture sectors, and all ideas have been shot down, quieted, Washington Petroleum Prod Tax at 0.150%or told that Democrats and the Governors office dont have the Washington Hazardous Substance Tax at .028571/centsappetite to open this legislation this year, even if it means to fix the problem they created.per gallonThe most reasonable solution is a Rebate Program that customers Washington Cap at the Rack at .57/cents per gallonexempted from CAR could submit forms to the state and receiveWashington Low Carbon Fuel Standard at .015/cents a refund within a reasonable time period, but the State says they per gallondont want to administer such a program because the Major Oilcompanies are the ones charging the surcharge. Again, with the At current prices, this calculates to 33% of the cost of fuel is being lack of logic sent to the STATE OF WASHINGTON, making them the largest WPMA News / Post WPMAEXPO 202331'