Critics say I-2117 is a jobs killer; supporters challenge that claim
Those in favor of abolishing the Climate Commitment Act through a ballot initiative say, among other things, that the law was effectively a gas tax because fuel companies have passed the cost for carbon emissions on to consumers. Those who want to keep the law in place say it provides jobs and funding for important programs. It will be up to voters to decide on Nov. 5.
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(The Center Square) — Opponents of Initiative 2117 to repeal the Climate Commitment Act and its carbon tax claim the measure would cost Washingtonians an estimated 45,000 high-wage jobs.
That's according to a recently released study by Greenline Insights that concludes I-2117 would cost Washington state approximately $9.1 billion in economic output over eight years.
But supporters of the measure to repeal the CCA argue that the Washington State Department of Ecology, which issued the study, is contradicting its own analysis from just two years ago.
The CCA caps and attempts to reduce greenhouse gas emissions from Washington’s largest emitting sources and industries, “allowing businesses to find the most efficient path to lower carbon emissions,” according to the department.
The report authored by Greenline Insights claims the initiative has the potential to reduce state revenue by $3.9 billion through 2029, and would eliminate investments into public transit, pedestrian safety, ferry electrification, air quality, renewable energy and more.
Hallie Balch of Let’s Go Washington, the organization behind I-2117, told The Center Square that the DOE's job loss claims are dramatically overblown based on a 2022 study by the department.
“The Department of Ecology clearly states that the CCA creates about 2,600 jobs in 2030 and kills jobs in every other industry except for construction,” Balch said via email. “After 2030, the CCA is projected to kill more jobs than it creates, so the opposition is, yet again, blatantly lying to voters and fearmongering to protect their failing Climate Commitment Act. Don’t fall for the lies, vote yes, pay less.”
Kelsey Nyland with the No on 2117 campaign, which features the Greenline Insights study on its website, responded to Let's Go Washington's criticism via email.
“The Ecology document that Let’s Go Washington is citing only measures the impact of compliance with the Climate Commitment Act (CCA)," she said. "It does not measure the impact of the investments generated by the CCA, including in transportation. Essentially, the study that Let’s Go Washington is misleadingly citing only measures the impact of the pollution 'cap' element of the program, not the 'invest' element.”
One of the criticisms of CCA opponents has been the lack of transparency and accountability regarding how the CCA money is being spent and what it would cost Washingtonians.
“There should be some honesty. It was designed as a tax, it’s meant to be a tax,” Brian Heywood, Let's Go Washington founder, said during an Aug. 15 Seattle Times editorial board debate on I-2117.
“If Jay Inslee would have just come out and said this is an existential threat, the environment is in grave danger and it’s going to cost all of you $300 or $400 or $500 more a year just on gasoline, and then your groceries are going up another $300 to $500 and then you heating bill is going up $500 … then here’s what you get for that and we’re going to measure it very carefully to see if it’s worth it … that would be an honest conversation and a great place to start,” said Heywood, pointing out the Inslee administration has not released emissions data since 2019.
“We stopped tracking this in 2019, the same year they made all these new rules,” he added.
One of the authors of the CCA, Rep. Joe Fitzgibbon, D-Seattle, admitted during the same editorial debate there was no tracking of how effectively the revenue was being spent.
Washington Policy Center's Vice President for Research Todd Myers wrote in a blog earlier this month that “This is in violation of state law which requires the state to release total emissions of greenhouse gases for the preceding two years by December 31st of each even-numbered year."
Data for 2020 and 2021 should have been released by the end of 2022, according to Myers.
No on 2117 backers argue CCA-funded projects provide thousands of family wage jobs.
According to the Greenline Insights study, jobs created by the CCA offer $91,000 per year in average employee compensation, which is 9% higher than the state median.
“Initiative 2117 slashes investment in the kind of sustainable, high-quality jobs we need to power our workforce now and into the future,” said Cassie Bordelon, executive director at Climate Jobs Washington. “I-2117 will devastate our ability to advance the clean energy economy and will hurt working people first and foremost.”
The third-quarter auction for the carbon market was conducted Sept. 4 and ended up with a $29.88 price per allowance, far less than the state projected. The auction raised an estimated $157 million.
One theory for the lower auction prices is that bidders may be unwilling to spend money on a program that could be going away if voters decide to approve I-2117 in November.
On Wednesday, the average gas price in Washington was $4.09 a gallon, according to AAA, though much higher in some parts of the state, including King County, where the average gas price was $4.42 a gallon. Only California and Hawaii have higher gas prices.