WA lawmakers consider raising carbon standards for fuel

WA lawmakers considering tougher clean fuel standards

Washington lawmakers are considering more strict carbon standards for fuels used in cars and trucks, though they could come with a cost.

OLYMPIA, Wash. - Lawmakers are considering stricter carbon standards for fuels used in cars and trucks. Supporters of the move argue the state needs to step up to support the environment, while opponents say the changes would increase already high prices at the pump.

Similar to the Climate Commitment Act, Washington’s Clean Fuel Standard sets targets over time to reduce carbon emissions from transportation fuels, with a marketplace of credits and deficits for fuel producers who are below and above the standards.

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Among the provisions in House Bill 1409, carbon reduction targets under the program would be accelerated and increased. The current goal is to reduce carbon emissions from transportation fuels to 20 percent below 2017 levels by 2038, with the legislation bumping it up to 45 percent.

Gas pump (TVW)

At a hearing in the Senate Environment, Energy and Technology committee on Wednesday, prime sponsor Rep. Joe Fitzgibbon, D-West Seattle, said the standard needs to be updated to promote continued development of clean fuels while meeting the state’s climate goals.

"I think the experience we have of the first couple years of this program shows that we can handle a little bit stronger target and that that’s necessary to achieve the increases in clean fuel production that I would hope to see," he told the committee.

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Staff with the Department of Ecology testified that the development of alternative fuels, like renewable diesel, had increased since the standard was enacted in 2021. Though that has presented some challenges.

What they're saying:

"The rapid pace of development has led to an oversupply of credits in the program, resulting in a low credit price," said Ecology staffer Joel Creswell. "This market imbalance results in less of an incentive for companies to continue to invest in decarbonization and newer technologies, which in turn threatens the health of the credit market."

Supporters of the program changes said Washington should follow states like Oregon and California, who have toughened their standards in response – directing activity away from the Evergreen State.

"There’s going to be a market imbalance on the West Coast," said Leah Missik, Acting Washington Director for environmental advocacy group Climate Solutions. "We’re not going to have the same amount of fuels coming into our state, or even the production incentives in our state that others would. And so we want to make sure that we’re not falling behind."

One business group argued the Clean Fuel Standard in its early stages currently has a minimal impact on transportation fuels, but that will change over time.

"As the program and its stringency increases — both as originally projected under this program, and under this new bill — those costs are expected to increase further," testified Peter Godlewski with the Association of Washington Business.

By the numbers:

GasBuddy data shows Washington has the third-highest average gas prices in the country, with prices in the state consistently above the national average over the last two years. And tariff threats encompassing Canadian oil would not help prices at all.

The Western States Petroleum Association said Washington tax and program costs, like the Climate Commitment Act, already add about a dollar to the price of a gallon of gas. They argue the proposed Clean Fuel Standard change could add on anywhere from four to 25 cents.

"I think it’s really important that you guys take a look about what the fuel affordability is and take responsibility for that – for all of the decisions that you’re making as policy makers for tax and program cost changes," said Jessica Spiegel, northwest region vice president for WSPA.

It is currently unclear when the bill could be voted out of committee.

Albert James is a television reporter covering state government as part of the Murrow News Fellowship program – a collaborative effort between news outlets statewide and Washington State University.

The Source: Information in this story comes from original reporting by Murrow News Fellow Albert James.