Washington’s New Cap-and-Trade Program: A Costly and Badly Flawed Climate Mandate
New program is 3x more costly than predicted
Washington’s newest climate mandate is the most expensive Cap-and-Trade program of its kind in the nation. The cost to comply with this program is estimated to be $1.3 Billion in the first year alone.1 This is 3 times more expensive than originally predicted when the program was passed by the legislature.2
Many experts are highly skeptical about the long-term feasibility of this program. In Washington’s rush to become the “greenest” state in the nation, the program doesn’t consider whether there is even a realistic way to comply with the aggressive goals that have been set by the program or what the cost impacts will be for Washington’s economy and consumers.3
- Washington Research Council, Memo on SSB 5126, Allowance Prices and Revenues, March 8, 2023 (based on February 28 allowance auction price of $48.50).
- Washington Office of Fiscal Management, Fiscal Note, E2SSB 5126, May 21, 2021 (based on a projected allowance price of $22.78 in 2023, and estimated 2023 auction revenue of $441,226,518).
- Carr Bon-Neutral Consulting, “Concerns Regarding Washington’s Cap-and-Invest Program,” April 2022.