Washington’s carbon fee rose by 15% at the state’s second cap-and-trade auction, the Department of Ecology reported Wednesday, and is high enough to turn on an emergency valve to contain energy costs.
Energy companies and investors bought nearly 8.6 million allowances for $56 apiece at the May 31 auction. The price exceeded the $51.90 threshold Ecology set before the auction that will automatically trigger a special auction in August to increase the supply of allowances. …
Washington’s allowance price exceeds California’s all-time high of $30.85. California has held 35 cap-and-trade auctions since 2012, but has never had to resort to a special auction to hold down costs. …
The results showed Washington’s cap-and-trade program is too costly and harming the economy, Western States Petroleum Association senior director Jessica Spiegel said in a statement. …
Skagit County dairy farmer Jason Vander Kooy estimated Wednesday that cap-and-trade has raised his diesel bill by up to $500 a day.
“It’s coming right during the spring field work. That’s our peak fuel usage,” he said. “The cost of business keeps going up and people wonder why farms keep getting bigger and bigger and the small guys get out.”
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