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Legislation to support the linkage of Washington’s cap-and-invest carbon market with those of California and Québec was signed into law today by Gov. Jay Inslee. Senate Bill 6058, sponsored by Sen. Joe Nguyễn (D-White Center), makes numerous technical changes to carbon markets to help align Washington’s market with those of California and Quebec, and is an important step forward for the cap-and-invest program created by 2021’s Climate Commitment Act.

Last week, the Washington State Department of Ecology, the California Air Resources Board, and the Gouvernement du Québec jointly announced their intention to pursue a joint carbon market, citing the shared common interest in reducing carbon pollution and the major benefits provided by a larger linked market with more participants. With a bigger and more stable market, it’s expected that Washington’s auction prices for carbon allowances would be significantly lower than at the 2023 auctions, with lower effects on gas and energy prices for consumers. An expanded market would also provide predictability and stability for businesses emitting carbon pollution participating in the auctions to incentivize long-term strategies to reduce emissions.

Recognizing the benefit of carbon market linkage to communities and businesses across Washington, SB 6058 was supported by a broad spectrum of stakeholders, including environmental advocates, tribes, businesses, energy utilities, labor unions, and more.

“We all know Washington can’t stop climate change all on our own – working with other governments like this is how we take the next step forward in our work to reduce carbon pollution and support a green, sustainable economy,” said Nguyễn. “The Climate Commitment Act is providing tremendous benefits for the people of Washington – helping limit carbon pollution and enabling investments in energy efficiency, environmental protection, clean transportation, and so much more. Linkage will make the CCA even better, with a more predictable and stable market that’s better for everyone involved.”

While SB 6058 will take effect on June 6, it’s expected to take at least a year for linkage with California and Québec to be completed.

OLYMPIA — Washington State Senate budget leaders unveiled a $71.7 billion supplemental operating budget plan Monday that increases support for behavioral health and public schools. 

The budget adds roughly $1.9 billion in new spending to the two-year budget passed by lawmakers in April 2023. 

“Many hours and conversations went into shaping our supplemental budget proposal, and I’m very proud of the result,” said Sen. June Robinson (D-Everett), chair of the Senate Ways & Means Committee. “It continues to showcase our values and priorities by making smart, targeted investments that give our neighbors and children the support and resources they need to thrive in Washington state.” 

The proposal includes over $242 million in new spending for K-12 schools, including funding for student meals, special education, and staffing needs, like paraeducators.  

It invests nearly $252 million in new spending to support efforts to transform the state’s behavioral health system, including funding for facilities and staffing. In addition, $36 million from the opioid settlement agreements will boost treatment for substance use disorder. 

The budget also utilizes funds from the state’s new cap and invest program to invest in energy efficiency, reduce carbon pollution, provide assistance to help low-income families pay their utility bills, and prepare communities for climate impacts. Passed in 2021, the Climate Commitment Act imposes a statewide cap on carbon emissions and requires businesses to purchase pollution allowances that will act as an incentive for them to curb emissions. 

“This budget continues the transformative investments we’ve made to benefit families, businesses, and our environment with the help of the Climate Commitment Act,” said Sen. Joe Nguyễn (D-White Center), vice chair of the Senate Ways & Means Committee. “What we’re presenting today reflects the values and priorities of Washingtonians. It helps families in need, creates jobs in our growing clean and green economy, and sets future generations up to succeed with support for our schools, early learning, and childcare. These are smart, effective investments that Washingtonians can’t afford to lose.” 

The budget plan includes no new general taxes and complies with the state’s four-year balanced budget requirement. It leaves $4.3 billion in total reserves at the end of the biennium.  

It will receive a hearing in the Senate Ways & Means Committee 4 p.m. Monday. 

The full budget document is available here. 

Other highlights of the 2024 supplemental budget proposal: 

• $135.9 million to operate 72 beds at Olympic Heritage Behavioral Health 
• $20 million for the University of Washington Behavioral Health teaching hospital 
• $49.6 million for paraeducators 
• $13.5 million for special education 
• $19 million to establish a psychiatric residential treatment facility in Lake Burien for youth, aged 12-18, with complex needs 

About the supplemental budget:
Supplemental budgets are passed in even-numbered years and allow the state to make mid-course corrections to the two-year budgets passed in odd-numbered years. It gives the state the opportunity to adjust spending to keep families safe, provide high-quality education, and address other emergent needs like public health. 

Legislation to support efforts linking Washington’s cap-and-invest carbon market to those of California and Quebec passed the Washington State Senate Monday.

Senate Bill 6058, sponsored by Sen. Joe Nguyễn (D-White Center), makes numerous technical changes to carbon markets to help align Washington’s market with those of California and Quebec, and is an important step forward for the cap-and-invest program created by 2021’s Climate Commitment Act.

Linking markets with California and Quebec is expected to have major benefits for Washington’s carbon market. With a larger and more stable market, it’s expected that allowance prices would be significantly lower than at the 2023 auctions, with lower impacts to the gas and energy prices for consumers. It also would provide predictability and stability for businesses emitting carbon pollution participating in the auctions to incentivize long-term strategies to reduce emissions. These benefits and others are outlined in the Department of Ecology’s October 2023 report analyzing the impact of linkage, which contributed to the state’s decision to move forward with the plan and this legislation.

“Joining forces with other states and governments in the fight against climate change is an important step forward in our work to reduce carbon pollution and support a green, sustainable economy,” Nguyễn said. “The Climate Commitment Act is playing a critical role for Washington’s clean energy future — investing in energy efficiency, protecting our environment, reducing pollution, and more — and linkage makes it work even better.”

SB 6058 was supported in committee by a broad spectrum of stakeholders, including environmental advocates, tribes, businesses, energy utilities, labor unions, and more.

The bill is not expected to be an alternative to Initiative 2117 on the November ballot, which seeks to repeal the Climate Commitment Act and eliminate Washington’s carbon market. The legislation states that if SB 6058 is found to be an alternative and placed on the ballot by a court’s final judgment, it becomes null and void.

Legislation sponsored by Sen. Joe Nguyễn (D-White Center) to bring transparency and accountability to gas prices and the oil industry was heard this morning in the Washington State Senate. The bill, SB 6052, would bring transparency to how oil companies set prices and make it possible to protect consumers. The hearing can be viewed on TVW here.

The law would require the Utilities and Transportation Commission to gather reporting of detailed pricing, profit margin, and transaction data held by fuel suppliers, refinery operators, and others in the transportation fuels supply chain. The UTC would then analyze and report to the governor, Legislature, and public on that data, including retail fuel prices and the profits of the industry as a whole and major firms within it.

“We’ve got to have accountability and transparency in our gas prices,” said Nguyễn. “This legislation will bring transparency to what’s happening so we can monitor for abuses and respond to bad actors. The corporations who polluted our air and water need to bear the cost of the environmental and physical damage they caused. If Big Oil is taking advantage of Washingtonians, they’ll be in big trouble.”

Washington has had some of the highest gas prices in the nation for decades, without clear transparency as to why. The Attorney General’s Office has long had the authority to sue companies over price gouging, but without the passage of this legislation, it lacks the data necessary to investigate and prove cases of corporate gouging of consumers by oil companies. Similar gas price transparency legislation was passed in California in 2023.

Sen. Joe Nguyễn (D-White Center), chair of the Senate Environment, Energy & Technology Committee, and Sen. Marko Liias (D-Everett), Chair of the Senate Transportation Committee, today affirmed the Legislature’s commitment to combatting climate change and moving toward a clean energy future.

The legislators noted how investments made possible by the Climate Commitment Act are already supporting alternative fuels and electric vehicles, helping farmers and low-income households with energy efficiency upgrades like heat pumps and solar panels, protecting forestlands and watersheds, transit options and bike/pedestrian safety improvements, attracting major investments to Washington state like the new hydrogen hub — which is expected to create and support more than 10,000 good-paying jobs — and much more.

“The investments funded by the Climate Commitment Act are already providing major benefits to the people of Washington,” Nguyễn said. “Washington is leading the way to a cleaner, greener future, and we can’t stop our climate progress. We need to defeat climate change and rein in the pollution that the oil and gas industry is causing across our state and nation —the Climate Commitment Act is how we make that happen.”

“Our Move Ahead Washington package is a comprehensive, 15-year vision for our state to reduce traffic congestion, expand transit and mobility options, and fix potholes and preserve aging bridges. The Climate Commitment Act is the foundation of these investments, without it all of these critical investments are at risk,” Liias said. “Right as our economy is beginning to recover from the pandemic, we shouldn’t jeopardize this progress. Washington families can’t afford to spend more time stuck in traffic or blocked by a failing bridge, and our kids can’t keep breathing polluted air.”

Nguyễn, working with other Democratic leaders, intends to introduce legislation in the 2024 legislative session to increase transparency for gas prices and oil company profits and  hold oil companies accountable for the damage to Washingtonians’ air, water, and health caused by fossil fuel pollution.

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More than $108 million has been refunded to Washington families through the Working Families Tax Credit (WFTC).  

The WFTC (House Bill 1297) is a sales and use tax remittance rebate to support working families who pay a disproportionate amount of their income in taxes. It is designed to put up to $1,200 per year back in the pockets of nearly 400,000 taxpayers, helping to balance Washington’s upside-down tax code.  

One in six Washington households is eligible for the tax credit and one in four children will directly benefit from the policy. At this time, just under 190,000 applications have been received. Individuals and families can check their eligibility here, and must meet the following requirements:  

• Have a valid Social Security Number or Individual Taxpayer Identification Number. 
• Lived in Washington a minimum of 183 days in 2022.  
• Be at least 25 and under 65 years or age OR have a qualifying child in 2022.  
• Filed a 2022 federal tax return. 
• Be eligible to claim the federal Earned Income Tax Credit (EITC) on their 2022 tax return.  

“The Working Families Tax Credit is a step toward economic justice for families on the margins,” said Sen. Joe Nguyen (D-White Center), who sponsored the Senate companion bill to HB 1297. “By putting money back into the pockets of those who need it most, we can reduce poverty and build a more equitable society.”  

Applications remain open and can be submitted online or by mail.