Fees for Washington’s carbon emissions cap program, being passed down in the form of higher gas prices, are being called an illegal tax by tribal leaders.
AAA has Washington’s average price for gas at more than a dollar above the national average, and the tribes aren’t the only ones saying distributors passing carbon cap fees down to the pump are partially to blame. Those fees aren’t due until 2024, but the tribes say fuel suppliers are already tacking on the surcharge.
A 2019 U.S. Supreme Court case brought by a Yakama Nation-owned fuel distributor led to agreements with the state to partially refund gas taxes paid by the tribes.
The Department of Ecology says because these fees are aimed at fuel suppliers, they are not a tax on gas nor on the tribes, but the Seattle Times says tribal leaders disagree since they’re now saddled with the added costs. You can read Ecology’s letter in response to concerns raised by the chair of the Lummi Nation below.
A spokesman for Governor Jay Inslee says, “Gas prices are primarily driven by supply and demand. The industry also makes inordinate profits in our region compared to other parts of the country due to a number of factors that are not related to emissions reduction policies. People floating the idea that the current 40-cent gap in Washington gas prices relative to national averages is directly connected to the CCA have done so through implication without any supportive evidence.”
Those leaders will meet with the Governor’s office May 31st.
