How the state budgets prepare for the possibility that the climate commitment act will be repealed (as revenues in the latest carbon auction came in low)
Climate commitment act (CCA) funds (proceeds from the carbon emission allowance auctions) are appropriated in the operating, capital, and transportation budgets. The supplemental budgets passed by the Legislature this year appropriate CCA funds assuming the current revenue forecast, but they delay a large share of those appropriations so that they will be effective only if […]
January 17 , 2024 - Emily Makings
Ecology’s carbon emission allowance auction revenue forecast, and an accounting of how the money is being spent
The state’s current forecast of carbon emission allowance auction proceeds estimates that revenues will be $1.092 billion higher than expected when the 2023–25 biennial budget was enacted last year. Gov. Inslee’s supplemental budget proposals would appropriate $915.2 million of that. Revenues The climate commitment act (CCA) was enacted in 2021. The first carbon emission allowance […]
November 27 , 2023 - Emily Makings
Dept. of Natural Resources is requesting an additional $23 million for its wildfire response and forest restoration program
The Department of Natural Resources (DNR) is requesting a 5.8% increase to its general fund–state (GFS) appropriations for 2023–25. On top of that, it is requesting a larger transfer from the GFS to the wildfire response, forest restoration, and community resilience account (25P). The 25P account was created as part of 2SHB 1168 in 2021, […]
October 17 , 2023 - Emily Makings
Value of agricultural production in Washington reached a record high in 2022
According to the National Agricultural Statistics Service, the value of agricultural production in Washington in 2022 was $12.776 billion, an increase of 26.8% over 2021. Adjusted for inflation, the year-over-year increase was 19.8%. This is a record high for Washington, even adjusted for inflation. Although apples are still by far the most valuable commodity in […]
September 07 , 2023 - Kriss Sjoblom
Cap and Invest compliance cost estimated for on-road vehicles based on the August 31 allowance auction price
The department of ecology today announced the results of its third regular auction of Cap-and-Invest Program allowances, which was held on August 30 (link). The settlement price for current (2023) vintage allowances was $63.03. This is up significantly from the 2023-vintage price at the May 31 auction, $56.01. Table 1 contains my updated projections of […]
September 06 , 2023 - Kriss Sjoblom
Cap and Invest allowance prices
In 2021 the legislature passed and the governor signed Senate Bill 5126 creating the state’s Cap and Invest program, which is intended to greatly reduce carbon dioxide emissions in the state. Under the program, beginning this year, each regulated entity is required to obtain an “allowance” for every metric ton of carbon dioxide it emits […]
September 22 , 2022 - Emily Makings
States, local governments, and nonprofits qualify for refundable clean energy tax credits under Inflation Reduction Act
The federal Inflation Reduction Act (IRA), which was signed by President Biden in August, includes $270.7 billion (over the 2022–2031 period) in new and expanded clean energy tax credits. (The cost estimate from the Joint Committee on Taxation is available here.) Notably, most of these tax credits will essentially be refundable for states and local […]
August 08 , 2022 - Emily Makings
It’s not clear that decoupling timber revenues from the school construction assistance program would be transformative for K–12 construction funding
On July 19, the Office of Superintendent of Public Instruction (OSPI) proposed decoupling state timber revenues from the school construction assistance program (SCAP). According to OSPI, this would be a more equitable way to fund school construction. Details are scant at this point, but it would involve a shift of roughly $30 million a year […]
June 29 , 2022 - Kriss Sjoblom
New analysis projects much higher prices for carbon allowances under the Climate Commitment Act
In 2021 the legislature passed and the governor signed E2SSB 5126 (the Climate Commitment Act [CCA]) establishing a cap and invest system to regulate and reduce the emission of carbon dioxide (CO2) and other greenhouse gasses in Washington state. Under the CCA the state will annually sell at auction tradable emissions allowances. Each allowance would […]
February 09 , 2022 - Emily Makings
Proposed transportation package would use carbon allowance auction proceeds and state operating funds, increase fees, and impose a new exported fuel tax
Yesterday the chairs of the Senate and House transportation committees proposed a transportation package that would provide $16.801 billion over 16 years (FY 2023 through FY 2038). SB 5974 (the revenue bill) is scheduled for public hearing in the Senate Committee on Transportation tomorrow. (SB 5975 is the spending bill. Summaries and project lists are […]