Washington voters uphold the state’s pioneering climate law

On Tuesday, voters in Washington state decisively upheld a landmark climate law that created a cap-and-invest program that has raised billions of dollars for clean energy and electrification projects across the state.

The 2021 Climate Commitment Act, which launched a carbon market in the state, was designed to help Washington nearly halve its greenhouse gas emissions by 2030 and virtually eliminate them by 2050. A ballot measure financed by hedge-fund manager Brian Heywood, Initiative 2117, would have repealed the law and banned the state from pursuing any kind of carbon-pricing system in the future.

Washingtonians rejected the repeal effort, with about 62 percent voting against the measure as of the latest tally.

Environmental groups, labor unions, and businesses applauded the result as proof of the carbon market’s effectiveness and broad support. Caitlin Krenn, climate and clean energy director at the nonprofit Washington Conservation Action, told Canary Media that the outcome also sends a clear signal to states considering similar climate policies, like Maryland and Pennsylvania.

“It shows that cap-and-invest is a strong policy solution, and that it can withstand political challenges,” Krenn said.

The result comes as former President Donald Trump has won reelection to the White House, a development that climate experts fear will derail the U.S. clean energy transition. Advocates say that with an incoming federal government hostile to climate action, state policies like Washington’s climate law must play a central role in order for the nation to slash its greenhouse gas emissions.

Since its launch less than two years ago, Washington’s cap-and-invest program has generated more than $2 billion in revenue that has helped fund public transit, new heat pumps and other electric appliances for households, electric school buses, and climate resilience projects.

Under the law, large businesses like utilities and refineries must purchase permits for any greenhouse gases they emit in the state. The total number of permits available is based on an annually declining cap on statewide greenhouse gas emissions. Over time, as the number of allowances goes down, prices will go up, nudging businesses to reduce their climate pollution. Close to 75 percent of the state’s carbon emissions are covered under the program.

Heywood and other supporters of I-2117, including the state Republican Party and other conservative interests, argued that the high costs of compliance have raised gasoline prices and hurt consumers. His political action committee, Let’s Go Washington, offered discounted gasoline at events at gas stations around the state to promote the initiative in recent months.

Experts at the Washington Department of Ecology estimate that the carbon market has increased gas prices from around 10 to 20 cents a gallon, though they say it’s difficult to untangle the climate law’s effects from other factors. Supporters of cap-and-invest say the lack of transparency from the oil industry on its profit margins makes it impossible to tell exactly what’s driving surging gas prices.

Tuesday’s election secured a victory for opponents of I-2117, which included climate advocacy groups, trade unions, tech firms headquartered in Washington including Amazon and Microsoft, and even oil and gas companies. The No on I-2117 coalition raised $16.4 million to fund a widespread advertising campaign, far outpacing the $9.4 million raised by Let’s Go Washington this year.

But Heywood may still notch a win in rolling back climate progress in the state. Another measure he bankrolled, to stifle the state’s efforts to start phasing out fossil gas in buildings, appears to be winning, garnering 51 percent of the votes counted so far.

Krenn noted that with only about 60 percent of ballots tallied as of Wednesday morning, it’s too early to say whether Initiative 2066 will be approved. But if passed, it would prevent local fossil-gas bans and repeal portions of a recent state law that aims to expedite the transition away from gas by Washington’s largest utility, Puget Sound Energy. The measure is backed by the state’s building industry association, hospitality association, and Let’s Go Washington.

No gas bans in Washington state currently exist, and the state law to push Puget Sound Energy to shift from gas to electric infrastructure doesn’t prevent the utility from serving gas to its customers. But the initiative marks the latest backlash from fossil-gas companies and other industry interests against a growing nationwide movement to electrify buildings.

Despite the possibility that I-2066 will pass, voters sent a strong signal on Election Day that they ​“support climate action and reject the efforts of this ultra-conservative group to try to roll back progress in the state,” Krenn said.