This 2010 photo shows a Tesoro Corp. refinery, including a gas flare flame that is part of normal plant operations, in Anacortes. (AP Photo/Ted S. Warren, File)

This 2010 photo shows a Tesoro Corp. refinery, including a gas flare flame that is part of normal plant operations, in Anacortes. (AP Photo/Ted S. Warren, File)

Big money pours into fight over Washington’s carbon fee

The oil industry has raised $20.46 million to defeat the initiative aimed at tackling climate change.

  • Thursday, September 27, 2018 12:37pm
  • Northwest

By Phuong Le / Associated Press

SEATTLE — A campaign bankrolled by the oil industry has raised $20.46 million to defeat a carbon pollution fee on the ballot in Washington state aiming at tackling climate change.

The money raised so far by the “No on 1631” campaign sponsored by the Western States Petroleum Association, an oil industry trade group, puts it near the top in fundraising efforts by a statewide initiative campaign in Washington, according to a review of state campaign finance data by The Associated Press.

The state record of $22.45 million was set in 2013 by opponents who successfully defeated a ballot measure requiring labels on food with genetically engineered ingredients.

If approved by voters Nov. 6, Initiative 1631 would charge large carbon emitters fees on fossil fuels used or sold in the state or electricity generated within the state. The fees would raise an estimated $2.3 billion in the first five years to fund a wide range of programs intended at cutting greenhouse gas emissions.

Oil companies have given the bulk of opposition money, with Phillips 66 the top donor at $7.2 million.

“This costly and flawed initiative would create damaging policies for our state and unfairly hurt Washington’s families, small businesses and our economy,” said Dennis Nuss, a spokesman with Phillips 66, which operates an oil refinery in Ferndale.

State Sen. Reuven Carlyle, a Seattle Democrat who sponsored a carbon tax bill in the most recent session, said big oil companies are trying to stop momentum on carbon-pricing in the U.S. Washington would be the first state in the nation to impose a direct carbon fee or tax by initiative.

Supporters of the measure have raised $6.1 million. The Nature Conservancy is the top donor giving $1 million in cash.

Proponents have run ads saying the initiative will hold polluters who have harmed people’s health responsible and invests the money in clean energy, clean water and other projects.

Meanwhile, on opposition TV ad warns that the measure unfairly exempts many of the state’s largest polluters, including the state’s only coal-fired power plant, steel mills and aviation fuels — and claims that smaller businesses and consumers are left with the burden.

Initiative backers say that the coal plant is exempt because it’s scheduled to stop burning coal by 2025 and that the measure covers most of the polluters in the state.

The measure comes two years after Washington voters rejected a carbon tax that would have been the first in the nation.

The escalating fees would start in 2020 at $15 per metric ton of carbon emissions, adding an estimated 14 cents to each gallon of gasoline sold. The fees increase $2 each year plus inflation and continues until the state meets goals to reduce greenhouse gas emissions. Then it would only adjust for inflation.

The initiative would also set up a 15-member public oversight board made up of governor appointees and state officials, to supervise the spending.

Critics say the board, with only one elected official, would have too much authority to spend billions of dollars on programs without accountability if emissions reduction targets are not met.

“This gives them huge latitude to do all sorts of things,” said Todd Myers with the Washington Policy Center, a conservative think tank, adding that there would be no accountability if efforts fail.

Carlyle, the state senator, said the board’s structure is in line with other state boards and commissions and the legislature ultimately has appropriations authority.

“The buck stops with the Legislature when it comes to spending authority,” he said.

Dana Bieber, a spokeswoman for the No on 1631 campaign, said it doesn’t matter to voters who funds initiatives.

“What they care about it how much the measure is going to cost them,” she said. “This unfair energy tax is going to increase the cost of gas, electricity, heating fuel and natural gas.”

Jeff Johnson, president of the Washington State Labor Council, said gas prices and electrical costs will go up initially but investments in clean energy will bring down the costs over time as the state transitions away from fossil fuels.

He said the board and three investment panels will go through a “rigorous process” to make sure projects will cut emissions.

“The whole goal is to reduce carbon emissions and clean up the air, the water and forests and have healthier outcomes for people,” he said.

Talk to us

More in Northwest

In this photo provided by Kimberly Fossen people work at the scene of an Amtrak train derailment on Saturday, Sept. 25, 2021, in north-central Montana. Multiple people were injured when the train that runs between Seattle and Chicago derailed Saturday, the train agency said. (Kimberly Fossen via AP)
Sheriff’s office: At least 3 killed in Amtrak derailment

The Empire Builder train was running between Seattle and Chicago in in north-central Montana.

Washington Gov. Jay Inslee speaks at a news conference, Wednesday, Aug. 18, 2021, at the Capitol in Olympia, Wash. Inslee announced that Washington state is expanding its vaccine mandate to include all public, charter and private school teachers and staff, as well as those working at the state's colleges and universities. Inslee also expanded the statewide indoor mask mandate in place for non-vaccinated individuals to include those who are vaccinated. (AP Photo/Ted S. Warren)
Gov. Inslee asks feds for medical staffing help with COVID-19

The state also requested Department of Defense personnel “to assist with the current hospital crisis.”

Two combines harvest wheat, Thursday, Aug. 5, 2021, near Pullman, Wash. Across eastern Washington, a drought the National Weather Service classified as "exceptional" has devastated what is normally the fourth largest wheat crop in the nation. (AP Photo/Ted S. Warren)
2021 a record-breaking drought year in parts of Washington

Wheat, lentils, chickpeas, and potatoes in the east side of the state have all suffered.

FILE - Utah defensive back Aaron Lowe (2) is shown in the first half of an NCAA college football game against Arizona, in Tucson, Ariz., in this Saturday, Nov. 23, 2019, file photo. A University of Utah football player has been killed in a shooting at a house party early Sunday, Sept. 26, 2021, Salt Lake City police said. The shooting that killed Aaron Lowe occurred just after midnight, only hours after the Utes beat Washington State 24-13. Police said another victim in the attack was in critical condition and authorities were searching for a suspect. (AP Photo/Rick Scuteri, File)
Utah Utes football player killed, woman hurt in shooting

Salt Lake City police said Aaron Lowe was killed a few hours after the Utes beat Washington State.

Police: 3 killed in shooting outside bar near Seattle

Shots were fired after a dispute between two people inside the La Familia Sports Pub and Lounge.

Driver stabbed, killed on school bus with students aboard

After the assault, the driver lost control of the bus, driving over the curb and crashing.

Washington to start offering COVID booster shots immediately

The booster doses of the Pfizer-BioNTech COVID-19 vaccine will be offered to certain people.

Two Makah Indian whalers stand atop the carcass of a dead gray whale in the harbor at Neah Bay on May 17, 1999. (AP Photo/Elaine Thompson, File)
Tribe wins major step toward resuming whaling off Washington

A judge has recommended that the Makah tribe once again be allowed to hunt gray whales.

Jury orders city of Roy to pay $3.26M to men shot by police

The verdict is one of the largest in Western Washington involving a nonfatal police shooting.

Most Read