Latest predictions by energy experts is that gas prices will increase by $1.60 PER GALLON by year 2035 with Gov. Inslees proposed Low Carbon Fuel Standards in WA State. You will pay more at the pump, pay more for every commodity you buy at the store because it all gets hauled by diesel trucks, and worst of all, for all that extra cost, you will receive nothing in return. Every Democrat running for office should declare today whether or not they will stand with citizens against our Governors proposed new rules that will hurt Washingtons working families! One of our policy staff people in Olympia attended the most recent meeting of the CERT (Climate Emissions Reduction Taskforce), and he provides a quick update on the portions relevant to transportation. At the previous meeting the Governor’s staff suggested that a linked cap and trade system would be the most appropriate method for reducing the state’s Green House Gas (GHG) emissions. At this meeting, the Governor’s office made it clear that it hopes that the transportation sector is included in this proposed cap and trade system. If the state follows the model established by California and Quebec, which is the system that the Governor’s office indicated it hoped the state would join at the previous meeting, this would be accomplished by treating each terminal rack in the state as a GHG emitter for purposes of its sales of gasoline, diesel, CNG, LNG, and propane (aviation, marine, and biomass-derived fuels would be exempt). This in turn would require each terminal rack to reduce its emissions (i.e. the fuel it supplies) or obtain the necessary emissions allowances. Not surprisingly, the inclusion of the transportation sector in linked cap and trade system would likely increase the price of these fuels. According to one of the consultant’s presenting at the meeting, this increase would be on the order of $1.60 per gallon by 2035 if the state was going to meet its goal of a 50% reduction in GHG emissions. The OFM presentation on meeting the state’s GHG goals indicated a potentially higher increase, on the order of a 60% increase in the price of gasoline by 2035. However, both of these predictions were based on placing a tax on carbon emissions rather than a cap on GHG emissions, thus introducing another layer of uncertainty regarding the accuracy of the predictions. Hopefully the next few meetings will provide greater clarity as the effects of a GHG cap and trade system on the transportation system, and I will certainly let you both know if that’s the case.
Posted on: Wed, 24 Sep 2014 18:24:32 +0000
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