b'2024 State ReportPost WPMAEXPO None of the budgets include any studies on transportation fuelDemocrat legislators announced they would be proposing legisla-pricing as originally were included in the Senates proposedtion imposing new transparency and accountability rules on the supplemental budget.oil industry. Governor Inslee and proponents of the cap-and-trade The 2024 Supplemental Transportation Budget at https://fiscal. program blamed the fluctuations in fuel prices on the petroleum wa.gov/statebudgets/2024proposals/ht2024supp spends a totalindustry, accusing the industry of engaging in price gouging, of $14.6 billion, including $340 million from Climate Commit- instead of acknowledging any problems with the Climate Com-ment Accounts, which are contingent on voters rejecting Initia- mitment Act. tive 2117. Funds were predominantly spent on projects alreadyDuring the 2024 session, Governor Inslee introduced legislation scheduled to receive funding during the 2023-25 biennium. Thisin his own words to deal with Big Oils record-breaking, exces-spending reflects a 0.8 percent decrease in traditional transporta- sive profits modeled after legislation that passed in California tion revenues from what was originally forecasted for 2023-25. last year. The bill would have required oil companies throughout A high level summary of the budget can be found at https://the entire supply chain to report data on pricing, profit and trans-fiscal.wa.gov/statebudgets/2024proposals/Documents/ct/actions to the Washington Utilities and Transportation Commis-ctHNarrativeSummary.pdf.sion (UTC). It would have also empowered a new division in the Notable Operating & Capital Budget Items of Interest: commission to oversee oil industry pricing and investigate allega-tions of market manipulation and price-gouging. Potential viola- $30 million to pay farmers and haulers who bought fuel fortions would have been referred to the Attorney Generals office.agricultural purposes but had to pay a surcharge due to theWIDE had several of its members testify against the bill this past Climate Commitment Act (CCA). Under the CCA, fuel used forsession arguing it was unclear who the bill applied to because agricultural purposes is supposed to be exempt from these kindsmajor oil marketer and other terms in the bill were undefined of added fees. The rebates would begin being issued by Septem- and explaining how the petroleum industry is already one of the ber 1 by the Department of Licensing based on a tiered system.most regulated and transparent industries. The $30 million is well below the $150 million that the Farm Bureau estimates is needed to cover the carbon surcharges paidUltimately, the Governors Oil Accountability Act died in the by farmers since the CCA went into effect.Senate Ways & Means Committee after concerns over the costFunding for the Department of Ecology to provide technical as- and cybersecurity concerns of handling the sensitive data. The fiscal note estimated that the cost to implement this bill over the sistance to representatives of emissions-intensive trade-exposednext four years would have cost the state over $29 million.industries, as defined in RCW 70A.65.110, on the replacement of existing industrial facilities with facilities under the sameWIDE will continue to monitor how California is implement-North American industry classification system code with lowering their fuel transparency law and be prepared to respond if this greenhouse gas emissions. The department must provide suchlegislation is reintroduced in Washington state during the 2025 assistance until November 1, 2024. legislative session. $250,000 is provided for the Department of Commerce toNotable Legislation contract with a nonprofit entity that represents the maritimeThat Passed During the 2024 Legislative Session:industry to develop and publish a strategic framework regardingCarbon Market Linkage (SB 6058) is Department of Ecology the production, supply, and use of sustainable maritime fuelsrequest legislation intended to facilitate linkage of Washingtons and deployment of low and zero emissions vessel technologiescarbon market under the Climate Commitment Act (CCA) with in Washington. the California-Quebec carbon markets. $25 million to help Energy Northwest develop carbon free clean Tax Credit for Carbon Allowances (HB 2199) authorizes energyi.e. small modular nuclear (funding lapses if initiativea B&O tax and a public utility tax exemption for the receipt, to repeal CCA is successful). generation, purchase, sale, transfer of allowances, offset credits,$300,000 for an analysis of the contribution of waste tires, asor price ceiling units purchased, traded or sold under the Climatedefined in RCW 70A.205.440, to 6PPD pollution. Commitment Act. Under the legislation, the exemption would be$2,000,000 is provided solely to communicate with the public both retroactive and prospective. The legislation was prompted after the Department of Revenue indicated that transactions in multiple languages on the use and benefits of climate com- involving allowances would need to be taxed unless there was a mitment act funding, as well as the ways in which communi- specific exemption in law.ties can access climate commitment act grant funding. Funds provided in this subsection may not be expended or obligatedTransition from Natural Gas for PSE (HB 1589) was brought prior to January 1, 2025 (funding lapses if initiative to repealby the states largest investor owned utility, Puget Sound Energy CCA is successful). (PSE). The bill makes several statutory amendments intended Governor Fails to Pass to support their transition away from natural gas as an energy His Priority Oil Accountability Legislationsource. The final legislation provides a regulatory framework for PSE to begin longer term planning and consolidation of both gas After gas prices in the summer fluctuated between the highestand electric operations into a single integrated system plan (ISP). and second highest in the nation, Governor Inslee and a group of WPMA News / Spring 202453'