Tag Archives: Climate Commitment Act

E-News: Mid-interim update on fuel prices, ag issues, parents’ rights and more

September 2023

Dear Neighbor,

Greetings from here at the ranch! Legislators refer to the months between our annual sessions as “interim,” and if you look at when the 2023 session ended (late April) and when the 2024 session begins (early January), we’re not much past the halfway point of this particular interim. That makes it a good time for an update, as my previous report to you was in July.

Now that summer is behind us, I hope it was a safe and productive season for you and your loved ones. It’s been a busy time at our place on top of harvest, the local meetings and community events that go with being your senator, and…welcoming a new family member. We’re happy and thankful to now have a daughter-in-law!

Also, it’s been nice to know how budget appropriations that were on my list when this year’s session began are already bearing fruit. I’m thinking specifically of the Columbia Valley Center for Recovery (formerly called the Three Rivers Behavioral Health Recovery Center), which received $5 million in the new capital budget, and the SR 224 Red Mountain Vicinity project. The public works director for West Richland let me know recently how the additional $5 million put into the new state transportation budget is just what they needed to stay within budget and on schedule.

Climate Commitment Act still inflating gas prices

While Washington no longer has the highest gas prices in the nation, the average cost of regular gas in our state is still north of $5/gallon. That’s also true for the average price in Walla Walla County, although Benton and Franklin are averaging less.

The governor insists this is due to profiteering by the oil industry. If so, why could I have saved $1.30 per gallon for diesel this week by buying it south of the state line? If maximizing profits is truly the intent, it makes no sense to jack up prices in our state but not in Oregon… or Idaho, where the prices are lower still.

Governor Inslee’s argument doesn’t fly with me, but then again he also claimed the full implementation of his Climate Commitment Act would only increase the cost of gas by “pennies” – instead of the 50 or so cents that seems to be the reality.

It might be different if the cap-and-trade approach at the heart of the CCA truly put a cap on the price of carbon. However, at the latest quarterly auction of “carbon allowances” (by the Department of Ecology) on August 30, the “settlement price” was up 12% from the May auction, which in turn was up 16% from the February auction. By refusing to put a cap on the price, the state basically forces fuel suppliers to continue adjusting their prices to recoup the growing cost of the allowances they purchase… and that means more pain at the pump.

Since those auctions began this year, the state has already raked in more than $1 billion, with another auction coming in December. It’s a much bigger haul than was projected by legislative budget writers, and makes the CCA look less like a real carbon-reduction strategy and more like a backhanded gas tax.

Governor Inslee, who pushed for a cap-and-trade policy for years before the CCA was passed in 2021, also claims his approach is the “ultimate measure to cut the cost of gas” and gives people “the choice to be powered by something else” – a reference to things like electrified public transit.

The ag workers I see leaving the fields and orchards each day at this time of year don’t have the option to ride e-buses and don’t own electric cars to plug in at a publicly built charging station. The CCA’s effect on gas prices is gouging everyone, taking money out of the pockets of those who can least afford it. And that’s before you get to how prices at the grocery store are being inflated due to the CCA’s effect on shipping costs.

Ag update: fuel surcharge, overtime head list of issues

Speaking of the Climate Commitment Act, a pair of commitments made to the agricultural community are found deep in section 10 of the law… and unfortunately, the Department of Ecology isn’t holding up its end.

One states “motor vehicle fuel or special fuel that is used exclusively for agricultural purposes by a farm fuel user” is exempt from coverage by the law; the second requires Ecology to “determine a method for expanding the exemption to include fuels used for the purpose of transporting agricultural products on public highways.”

It became clear during this year’s legislative session that Ecology wasn’t complying, which caused me and other Republican senators to introduce SB 5728 in February. The bill went nowhere, and months later, Ecology is echoing the governor’s line; in this news report the agency blames fuel suppliers for the gouging of our ag community.

The broken commitment on the CCA fuel surcharge would have been an outrage even if this year had been a good one for Washington agriculture. But between the higher inflation rate driving up the cost of putting in crops, and the commodity prices and lower yields many have seen, the last thing our ag sector needs is more cost for simply operating equipment, and for trucking/shipping.

Washington agriculture also needs relief from the overtime law adopted in 2021. The farming operations I’ve visited say it’s a huge issue, and a seasonal exemption would be a big help… but a bipartisan bill to allow that went nowhere. As this NPR report explains – using a local asparagus operation as an example – workers who thought they would be helped by the change have come to a different conclusion. Unfortunately, labor advocates are acting like they know what’s best for the workers.

New school year, but no new rights for Washington parents

For three years I’ve proposed legislation that would, among other important things, require school districts and public schools to post certain assessment results online… instead of forcing parents to navigate this section of the Superintendent of Public Instruction’s website. Last year my bill finally got a public hearing in the Senate K-12 education committee, on which I serve, but the chair did not allow a vote.

After seeing the results of the student assessments from this past spring, I can understand why the state’s largest teachers’ union, the Washington Education Association, has SB 5024 on its list of proposals that “do not align with WEA’s priorities and present a concern.” The “at grade level” metric for students closest to graduating – this past year’s 10th-graders – shows students are far from recovering from the learning loss in English and math:

English:

Students meeting the standard for their grade level was unchanged from last year (50.7%)
In spring 2021, the figure was 47.7%, but pre-pandemic (spring 2019) it was 59.6%

Math:

39.1% of students met the standard for their grade level, slightly higher than last year (37.7%)
In spring 2021, the figure was 30.4%, but pre-pandemic (spring 2019) it was 48.9%.

When SPI Chris Reykdal, the state’s top K-12 official, released the test results earlier this month, he offered almost no comment about the numbers, choosing instead to start with this: “Our students enter our school buildings each day and add new learning and skills to their toolbelt… Each and every student is learning year over year!”

Talk about stating what should be obvious. No wonder The Seattle Times recently criticized Superintendent Reykdal for “cheerleading mediocrity.”

Test results aside, my “parental bill of rights” legislation would also ensure parents and legal guardians have the right to:

Access to what their children are being taught, including but not limited to classroom and school-sponsored activities, access to curricula and instructional materials used within the curricula, and access to these materials for review either online or through an alternative method;
Information on who is teaching their children, including guest speakers and presenters who are not employed by the school;
Access to the names and organizations/affiliation of those with curriculum-related contracts with the school district or public school and are receiving public funding;

SB 5024 also would direct the Washington State School Directors’ Association (the statewide school-board agency) to update a model policy and procedure regarding accessibility through remote participation in and recordings of school board meetings, and encourage school districts to act accordingly.

K-12 funding in our state is based largely on enrollment, and many districts have had to tighten their belts because parents have gone elsewhere to get their children educated. Maybe that would change if districts made it easier for parents to be active and involved in their child’s education.

My bill is not about parents driving curriculum, but about schools being more transparent with parents… about creating better avenues for parents to access their children’s education and become better acquainted with district policies. Although powerful interests are opposing this legislation, I’ll keep trying.

Will court ruling force change in 16th District boundaries?

Our legislative district borders three others – the 9th, 14th and 15th. In the past several weeks, federal judges finally ruled on legal challenges filed last year regarding the boundaries of the 15th District, which shares a boundary with ours from west of Prosser to north of Benton City.

The upshot is that while the 15th is a “majority-minority” district, it falls short of the standard in section 2 of the federal Voting Rights Act – meaning race was not considered enough when the boundaries were reset in 2021 (as part of the statewide redistricting that occurs following each federal census). The court says the boundaries must be redrawn.

A recent Tri-City Herald editorial does a good job of explaining the nuts and bolts of the situation, but since that was published, the majority leaders in the Senate and House have decided against having the state Redistricting Commission handle the job of redrawing the lines – even though state law clearly says that’s what should happen.

This is a mistake. Our Legislature has a civic duty to reconvene the Redistricting Commission – which was created by Washington voters 40 years ago, relieving the Legislature from the responsibility of redistricting and essentially eliminating opportunities for the “gerrymandering” that gives one party an advantage in elections.

Why would anyone think it’s better to let a single judge or a judge’s appointee redraw the map behind closed doors, instead of having a bipartisan committee do the job out in the open? As this might cause a change in our 16th District, I will keep you posted.

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Please remember I am here to serve you. Although we may not always be able to meet face to face, I encourage you to reach out to my office and to share your thoughts, ideas and concerns on matters of importance to you. Please, if you don’t already, follow me on Facebook. I look forward to hearing from you.

Sincerely,

Perry Dozier

Republican ag leaders highlight hypocrisy of Democrats on gas-price debacle

Sen. Perry Dozier

OLYMPIA… Agricultural-policy leaders from the Senate Republican Caucus are weighing in on attempts to gaslight the public on why Washington’s gas prices remain highest in the nation.

While Gov. Jay Inslee and other Democratic elected officials tried to lay blame on the oil and gas industry during a news conference today, Senators Ron Muzzall, Judy Warnick, Perry Dozier and Mark Schoesler pointed out the hypocrisy of Democrats about their “cap-and-gouge” carbon-pricing scheme and its impact on the state’s agricultural producers. The carbon law was passed in 2021 but did not take full effect until 2023, triggering a steady rise in Washington gas prices. Washington overtook California for the nation’s worst gas prices a month ago.

“The governor and supporters of this money-grab are the only ones surprised that their carbon tax would result in higher prices at the pump,” said Muzzall, R-Oak Harbor, the ranking Republican on the Senate’s ag-related committee. “There’s a great deal of unhelpful finger-pointing going on while our ag industry is hurting. It’s hypocritical that farmers are stuck paying nearly 50 cents more per gallon for gas in costs that they were legally exempted from, while the governor gets to be chauffeured in his taxpayer-funded luxury SUV.”

The row over a fuel-surcharge exemption for Washington’s agriculture, timber and marine industries is ongoing as state regulators seem unable to follow the law’s requirements. When pressed on the issue, Inslee has flippantly said that these affected groups should seek reimbursement from the oil and gas industry themselves.

“Proponents of this scheme promised to maintain the exemption for ag fuel and broke that promise,” said Warnick, R-Moses Lake. “During recent town halls, I heard near-unanimous frustration and opposition to what the governor and these politicians are doing to rural and minority communities that I represent. Taking money out of working families’ pockets to line the state’s coffers doesn’t reduce carbon emissions, but it does make our state even more unaffordable.”

Washington has operated a similar state fuel tax refund program for the same industries for years, leaving Republican lawmakers and the public scratching their heads as to why the legally required rebates are unattainable.

“The governor has zero business talking about accountability on fuel prices. He hasn’t even held his own administration accountable for how his policy has gouged our state’s agricultural and maritime sectors. For months he and members of the Democratic majority ignored Republican efforts to end the surcharges on exempt fuels that are not only unfair but illegal,” said Dozier, R-Waitsburg, who prime-sponsored an unsuccessful piece of legislation to ensure the exemption is followed. “Farmers are price takers – they can’t be expected to absorb higher fuel costs while the governor and Ecology have dragged their feet on making things right. It’s completely unacceptable.”

The average price of regular unleaded gas in Washington is $4.928 today, compared to $4.588 in Oregon a gallon and $3.892 in Idaho. Assertions by Inslee and other Democratic lawmakers of price gouging and profiteering are debunked by the price disparity, while the effect of the higher fuel costs on overall business expenses puts Washington’s agricultural sector and other employers at a disadvantage.

“Even though the governor has been demonizing oil companies as the reason why our state has the highest gas prices in the nation, our neighboring states have much lower prices,” said Schoesler, R-Ritzville, a co-sponsor of Dozier’s legislation. “Oregon and Idaho don’t have cap-and-trade. It’s obvious that Washington’s cap-and-trade program is why our state has the highest gas prices in America. While most of the nation is enjoying gas prices below $4 a gallon, people in our state have been forced to pay about $5 a gallon for several weeks, and prices in Washington likely are going to keep rising.”

E-News: Affordability crisis deepens in WA, between gas prices and new tax on workers

On Tuesday morning I had the pleasure of taking part in a memorable ceremony for the B5 Community Learning Center in Kennewick. Often the shovels are put in the hands of the elected officials and others who have had roles in getting a project to the construction stage; this time the ground was literally broken by the immigrant children who will be served at the new B5 center!

Dear Neighbor,

Greetings from here at the ranch! It’s been almost two months since the Legislature adjourned for the second time this year… following a one-day “special” session to update our state’s drug-possession law. I’ve been busy catching up on ranch chores that couldn’t be done during our 105-day regular session, and some extra projects because we’re hosting a family gathering next month – many of you know how that is.

But I am your senator year-round, even when I am not at the state Capitol, which means attending meetings and community events, and continuing to listen to your concerns about government and the government policies that are affecting your life and family. I’m going to zero in on a couple of those in this newsletter. They unfortunately deepen the affordability crisis in our state, which has been a top concern for Senate Republicans for years.

‘Please do something to lower gas prices’

A constituent named Larry made a simple request in an email earlier this month.

“Please do something to lower gas prices. It is my understanding that Washington now has highest prices in the US. It is having an impact on me, and I can’t image the impact on those making minimum wages.”

He’s correct: Until about three weeks ago, California had the nation’s highest gas prices. Then Washington moved ahead – just in time for the extra driving many families do during summer vacation from school, as Senate Republican Leader John Braun noted in this public statement.

Another constituent, Michael, went more in-depth with his concern about gas prices.

“The state legislature needs to address this problem of rising gas prices immediately. Call a special session… Washington does not need the status of the state with the highest gasoline prices superseding California and Hawaii, let them reclaim this dubious distinction. “THE TIME TO ACT IS NOW, NOT NEXT YEAR, NEXT LEGISLATIVE SESSION.”

Then there was this email from Helen, another constituent. Like Michael, she connected Washington’s high gas prices to a state law that was passed in 2021 but didn’t take full effect until 2023. It’s officially called the Climate Commitment Act (CCA) but known generically as “cap-and-invest,” “cap-and-trade” or “cap-and-tax,” depending on who is talking (to me it clearly functions as a tax):

“I am writing to urge you to act immediately to FIX Washington’s deeply flawed and enormously costly new cap-and-trade program that was launched earlier this year.

“Independent sources, such as Washington Policy Center and Washington Research Council (WRC) estimate that based on the May 31st auction price, the compliance costs for this program are adding 44 cents per gallon to the cost to manufacture gasoline and 55 cents per gallon to the cost to manufacture diesel.

“The Seattle Times reports that the Department of Ecology has collected almost $850 million in compliance costs so far this year. An independent analysis conducted by WRC also estimates the program could cost $1.5 billion by year-end. These costs are three times higher than originally estimated when the legislature voted cap-and-trade into law.

“I urge you to work with your legislative colleagues to fix this flawed program to make it work as intended in meeting our climate goals without placing enormous cost burdens on Washington families, small businesses, family farmers and working people across our state.”

The auction referred to in Helen’s message is how, under the cap-and-tax law, state government began selling carbon “allowances” this year. These “compliance costs” are passed on to us at the pump, which explains why Washington gas prices have continued upward all year while they’ve fallen in other states.

The message from Michael also suggested legislators had failed to ask, back in 2021, whether the Climate Commitment Act would cause gas prices to rise. I can assure him that many of us didn’t ask whether the proposed law would affect gas prices – we predicted it would.

I’ll also point out that this bill didn’t get a lot of attention outside the Capitol because that legislative session was held remotely, greatly limiting the public’s ability to be heard. I don’t think it’s a coincidence that controversial “reform” bills about law enforcement were slid through that session, as was the state’s capital-gains income tax.

As I replied to constituent Larry, I am careful about sounding overly partisan, but when it comes to gas prices in our state and the subject of energy/fuel in general, there is no getting around how there is a great difference of opinion between Republicans and Democrats.

In each of the past two legislative sessions, Senate Republicans have proposed lowering gas prices through a temporary suspension of Washington’s 49.4-cent state gas tax (Senate Bill 5897 in 2022, and this year, SB 5756, which I sponsored). Democrats have shown zero interest – meaning they would not even agree to hold a public hearing on either bill and listen to the valid concerns you and many others have.

To Michael’s point, I would definitely support having a special legislative session to address gas prices. However, I doubt our Democratic colleagues feel the same way, as they and Governor Inslee are denying the Climate Commitment Act has anything to do with Washington having the highest gas prices in the U.S. The reality is, too many of the people who control our state government don’t seem to care if you are paying more for gas, and see higher gas prices as the way to force people into public transit and electric vehicles. But I will not give up, as this is too important to the people I serve.

The state Department of Ecology is on point within the executive branch of state government for implementing the Climate Commitment Act; it’s also the agency failing to deliver on the CCA exemptions promised to the agricultural and maritime industries (and the fuel surcharge rebates now owed them due to that failure) Just this week I was among more than 40 lawmakers signing a letter to Ecology which offers a plan for bringing gas prices down. Click here to read it.

New payroll tax adds to affordability crisis in our state

As of this month, any paycheck cut in Washington is subject to the new long-term care tax, unless the paycheck goes to someone who has obtained an exemption from state government.

The law that is now making Washington gasoline so expensive was created in 2021; the payroll tax goes back even farther, to 2019. The Democratic majority delayed the tax collection until 2022, which kept the whole thing under the public’s radar. But as word got out about the tax and the many flaws in the so-called “WA Cares” program it support (like how people who choose to retire out of state would give up access to the long-term benefits they’d paid for), people wanted an opportunity to exempt themselves.

That opportunity came late in 2021, for a limited time, but exemptions weren’t granted unless you could show you had purchased separate long-term care coverage. The resulting controversy led Democratic legislators to delay the collection of the tax until this month and add four very narrow exemptions that are ongoing but still exclude most Washington workers.

That was last year. I had hoped the majority would make further adjustments during our 2023 regular session, but nothing happened – and with the tax now coming out of the paychecks of those who could not or have not obtained an exemption, I am hearing from people again, wondering what’s going on and what can be done about it. They don’t like giving up an average of $24 in pay each month indefinitely for a benefit that might pay for only a few months in an assisted-living facility.

An answer came from some of my Senate Republican colleagues this week. Knowing that our colleagues in the Democratic majority won’t repeal WA Cares, they’re proposing that Washington workers again be given the choice to opt out, this time with no time limit and no strings attached (meaning no need to show proof of purchasing a separate policy). You can see the latest draft of the proposal here and read the thinking behind it here.

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