WA farmers get their gas tax exemption. Ferguson signs key bill in Tri-Cities
AI-generated summary reviewed by our newsroom.
- New law exempts farm fuel from cap-and-trade fees, ending rebate confusion.
- Gov. Ferguson signed 11 bills in Tri-Cities, highlighting east side priorities.
- Bill directs state to designate exempt fuel sites, aiding small farm access.
Washington Gov. Bob Ferguson reaffirmed that agriculture is exempt from fuel taxes related to the Climate Commitment Act at an unusual bill signing in Kennewick on Thursday.
The Democrat signed 11 bills into law during a swing through the Tri-Cities. Typically, the governor signs bills passed by lawmakers in a conference room outside his office in Olympia.
But Ferguson said it was important to visit communities around the state. The bills signed reflect East side priorities, none more pressing that sorting through the confusion that led to farmers paying fuel charges despite being exempt.
The ag fuel exemption has been a priority for the industry since Washington implemented its Climate Commitment Act in 2023. The act aims to curb the state’s greenhouse gas emissions and included a cap-and-trade system to raise money to invest in sustainable industry.
Agriculture was supposed to be exempt.
Farmers paid fees anyway
In reality, farmers paid the fees on both gasoline and diesel and had to apply for rebates. The problem was particularly acute for small farmers who fuel up at retail stations, according to Capital Press.
Cap-and-trade fees raise costs at the pump as distributors pass the costs on to both gasoline and diesel customers.
Rep. Tom Dent, R-Moses Lake, sponsored a fix. Co-sponsors include Tri-Cities Republican Reps. Stephanie Barnard and April Connors.
The bill, officially Engrossed Second Substitute House Bill No 1912, exempts fuel used both on- and off the farm from climate commitment fees.
It also directs the state Department of Ecology to identify locations where ag operators may purchase exempt fuel, rather than applying for rebates later.
Dent served as co-chair for Ferguson’s agricultural subcommittee as he transitioned into office. He said the incoming governor pledged to support his work to address the fuel charge problem.
Dent traveled to the Tri-Cities to stand next to the governor as he signed the bill.
The fuel tax bill was a “heavy lift,” Dent said. “The governor kept his word.”
Ferguson called it a “great” bill and said he was pleased to honor the Climate Commitment Act’s promise to exempt agriculture from the fees.
The bill passed 93-4 in the House in March and 49-0 in the Senate on April 16.
New Washington laws
Ferguson signed 10 other bills at a crowded ceremony hosted by the Tri-City Development Council (TRIDEC).
- Senate Bill 5543. The bill, sponsored by Tri-Cities Republican Sen. Matt Boehnke, expands eligibility for college scholarships.
- House Bill 1253 allowing public utilities to enter joint use agreements with private companies.
- House Bill 1258: The Spokane-focused bill clarifies how the city and county share fees for the regional 911 system.
- House Bill 1648 clarifies child care provider qualifications.
- House Bill 1934 redacts personally identifying information from certain records released under the Public Records Act.
- House Bill 936 makes it easier for retired school employees to work in schools
- Senate Bill 5305 provides additional time to carry out the Yakima River basin integration plan.
- Senate Bill 5323 enhances penalties related to the theft and possession of property stolen from first responders.
- Senate Bill 5485 extends the state’s livestock identification program.
- Senate Bill 5682 concerns the state’s employment training program.