Badger Club offers two sides to state carbon reduction plan | Guest Opinion

Last year Washington’s Legislature passed a law increasing carbon emission reduction targets. It would require significant spending, yet the latest revenue forecast projects a budget shortfall of $3.3 billion through 2023.

A proposed solution to this dilemma will be debated in a Columbia Basin Badger Club online forum beginning at noon on Thursday, Feb. 18.

Our state Constitution requires a balanced budget, so paying for new initiatives could mean drastic budget cuts and tax increases, even as the pandemic has cost jobs and hurt businesses. State officials, led by Gov. Jay Inslee, want to stimulate the economy, but also have a target of carbon neutrality by 2050.

Seemingly conflicting goals, but backers of Washington Strong (SB 5373), which is now being considered by the Legislature, argue it would address both economic recovery and climate change. They say it would generate $16 billion for carbon-reducing projects and create up to 150,000 jobs.

Supporters say Washington Strong would:

1. Establish a per-ton price on carbon pollution to generate revenue to finance “green bonds” for clean economy transition. This would escalate over time and be applied to “rack” prices — meaning at the point of entry from fuel distributors.

2. Authorize bond sales over 10 years for projects meeting specific climate and economic criteria.

3. Invest the bond proceeds and tax revenues in projects that generate jobs and greenhouse gas reduction — for instance, improving energy efficiency in public buildings and enhancing forest health.

Supporters say this approach would naturally “sunset” because as carbon emissions go down, so will the revenue, thus limiting bonding capacity.

This wouldn’t come without cost to individuals, however, as businesses importing fossil fuels would likely pass at least some carbon tax cost on to customers. Gasoline prices would increase, although some fossil fuels would be exempted at least for a while, including those used to produce electricity, agricultural and forestry fuels, and fuel to transport agricultural goods to market.

Some relief would be passed back to consumers through the Working Family Tax Exemption, established a few years ago but never funded, and with rebates or credits on utility bills.

The forum will feature two speakers:

Doug Ray of Carbon Washington — one of several groups promoting the idea — argues it is a market-driven approach that would accelerate innovation and help us achieve a carbon-neutral energy economy. He is chair of Carbon Washington’s board and a member of the Citizens’ Climate Lobby. He is a recognized authority on decarbonizing the global energy system and the environmental consequences of energy production and use.

But Todd Myers of the Washington Policy Center believes SB 5373 may not be the best way to achieve a carbon-free economy. He is environmental director of a market-oriented think tank in Seattle and recognized as a national leader on free-market environmental policy. He serves on the board of two national center-right environmental organizations: the American Conservation Coalition, an environmental advocacy organization that works to engage youth in conservation and environmental stewardship, and ConservAmerica, a group dedicated to habitat and wildlife conservation.

To attend the Zoom online presentation, register at the club’s website, columbiabasinbadgers.com , to receive a confirmation email with a link to join the meeting. Cost is $5 for nonmembers. There is no charge for club members, who receive a $5 discount.

This story was originally published February 16, 2021 at 12:05 PM with the headline "Badger Club offers two sides to state carbon reduction plan | Guest Opinion."