![]() Under Washington’s CO2 tax law, industries that face global competition and may be harmed by high energy prices, such as food production or semiconductor manufacturing, are slowly phased in. These high costs also indicate how foolish a proposal to eliminate protections for energy-intensive, trade-exposed industries (EITE) would be. The current state gas tax is 49.4 cents per gallon, so this would nearly double the amount of taxes Washington residents have to pay for gasoline. As a result, prices can fluctuate significantly, as these new estimates demonstrate. Rather than a tax on CO2, the state system would sell permits to emitters for each MT of CO2, creating an artificial market. This is significantly higher than the $20.60/MT used in the previous projection given to legislators in the state’s fiscal note on the cap-and-trade bill, which agency staff called “conservative” at the time. For diesel, it would add more than a dollar, $1.02, per gallon, or 97 cents for diesel mixed with biofuel. That amount would climb to $100.23 per MT in 2030, equating to 89 cents per gallon, or 80 cents per gallon for the 10% ethanol mix. For diesel, the tax on CO2 emissions would increase the cost of a gallon by about 59 cents per gallon, or 56 cents per gallon for fuels that include 5% biodiesel. That would add a tax of about 52 cents per gallon or just over 46 cents per gallon for fuels required to include 10% ethanol in accordance with Washington state law. The Washington Research Council noted that an analysis from Vivid Economics and McKinsey & Company for Ecology projected the cost of a metric ton (MT) of CO2 to be $58.31 next year. Washington state’s new tax on CO2 emissions is projected to add 46 cents to the cost of a gallon of gas as soon as next year, the state Department of Ecology reports. Denying exemption timeline could mean business failure and reliance on Chinese alternatives that pay little and cause environmental and human rights harm Starting in 2027, 97% of their emissions would be exempt. Through 2026, EITEs are exempt from the tax on CO2 emissions.Environmental activists seek to remove protections from the cap-and-trade bill for energy-intensive, trade-exposed industries (EITE).Fiscal note on the cap-and-trade bill projected a $20.60 cost per metric ton of carbon emissions, a fraction of what the state Department of Ecology now predicts. ![]() Current state gas tax is 49.4 cents per gallon, so the new tax is projected to nearly double taxes on gasoline paid by Washington residents.By 2030, the new tax is projected to add 97 cents per gallon of diesel.By 2030, the new tax is expected to add 80 cents per gallon of gas.An increase of 56 cents per gallon is projected for 2023 diesel prices.State’s new tax on CO2 emissions is projected to add 46 cents per gallon to 2023 gas prices. ![]()
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