Welch: State’s climate act hides cost to gas and its spending

The CCA is at least partly to blame for the highest gas price in the U.S. Is it delivering cleaner air?

By Todd Welch / Herald Columnist

If you’re filling your tank in Snohomish County these days, that familiar sting at the pump has become a full-blown ache.

As of Sept. 16, Washington’s average price for regular unleaded gasoline stands at $4.66 a gallon, the highest in the nation, edging out even in California by a penny.

That’s a steep 46 premium premium over the national average of about $3.18, forcing families here to fork over hundreds more annually just to navigate I-5 commutes, school runs or trips to the store. Global oil fluctuations and refinery constraints contribute, but a major culprit is the state’s Climate Commitment Act (CCA), the cap-and-trade scheme that’s taxing carbon emissions and inflating costs for everyday essentials.

Enacted in 2021 with grand visions of curbing greenhouse gases and bankrolling eco-friendly ventures, the CCA mandates that big emitters purchase “allowances” via auctions overseen by the Department of Ecology. The latest auction on Sept. 3, hauled in a record $446 million, $295 million for the state and $151 million passed to utility ratepayers, at a settlement price of $64.30 per allowance for nearly 6.4 million units, reports CenterSquare Washington.

Since its launch in January 2023, the program has amassed nearly $3.5 billion in total revenue.

On the surface, it sounds like a win for the planet. In practice? It’s a deliberate price hike on gas, diesel and natural gas, as the system shrinks available allowances over time to force emission cuts, straight from the pockets of consumers such as us. Critics aren’t mincing words. “Real people are being hurt by this,” said Todd Myers, vice president of research at the Washington Policy Center, pointing to how the CCA’s design inherently drives up fuel costs without clear evidence that it’s delivering on emissions reductions.

Add the state’s six-cent gas tax increase from July, aimed at patching a $1 billion transportation projects hole, and you’ve got a recipe for Washington’s unwanted top spot in national gas prices, a burden that hits hardest in car-dependent areas like the Puget Sound region. If the pump pain wasn’t bad enough, follow the money, and the CCA’s flaws sharpen into focus. Proponents tout funds for “bold climate action,” with Ecology Director Casey Sixkiller boasting that recent auctions reflect “confidence that businesses and investors have in Washington’s market.”

Yet transparency lags: The Department of Ecology still hasn’t released comprehensive emissions data to verify if the state is hitting its targets, fueling doubts about the program’s efficacy.

Meanwhile, a dive into the 2025-27 budget shows only about 9 percent of allocated CCA revenue, roughly $174 million, funneled to direct environmental efforts, such as forest restoration or carbon sequestration. The lion’s share? Over 70 percent bolsters administrative bloat: more staff hires, feasibility studies and equity audits that prioritize bureaucracy over boots-on-the-ground impact.

Look further, and it’s grim: A recent Ecology report pegs just 0.1 percent of total CCA spending on air quality improvements, a paltry two projects amid moer than 1,000 funded items. Shockingly, 89 percent of 2024 project outlays showed zero quantifiable drop in carbon emissions. State trackers highlight nearly $500 million disbursed for wildfire mitigation, EV infrastructure and community aid; with 61 percent targeting “overburdened” areas. But much of it veers into symbolic territory: one-off rebates (like the $200 electricty credits sent out in late 2024 for low-income households, planning grants and consultation sessions that sound progressive but deliver scant pollution relief.

Without mandatory metrics tying dollars to emission cuts, it’s less a climate crusade and more a slush fund for government growth.

Climate threats are undeniable, and Washington must act wisely. But the CCA? It’s a regressive toll on households already squeezed by inflation and housing woes, all while skimping on proven green outcomes. The push to repeal it via Initiative 2117 last year saw support from nearly 4 in 10 voters, who sense the disconnect. It’s time to halt the auctions, demand an independent audit, and pivot funds to high return-on-investment projects that lower emissions without hiking our bills.

Next time you’re gritting your teeth at the gas station, know this: You’re not just fueling your car, you’re funding a flawed experiment that’s long on costs and short on climate wins. Our state can, and must, do better.

Todd Welch is a columnist for The Herald, addressing local and state issues. He lives in Everett.

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