We’ve been doing the cap and trade program for a while now, so we thought it would be good to check in and see how it was going. In a completely unshocking turn of events, it’s a bit controversial. Let’s look at what’s going on and speculate on why.
Here are Five Fast Facts about the Cap And Trade Program:
- 💨 Recap The Cap - A cap and trade program is a government mandate that limits the amount of emissions by companies. Companies have to either limit their emissions or pay penalties for going over the limits. The program is intended to reduce energy usage, thus saving the planet (though those claims are dubious at best, as we’ve discussed before). The Evergreen State passed one in 2021, and it kicked in as of 2023.
- 💰 Cha-Ching - Last year, the auctions for carbon emissions raised almost $2 billion for the state! This year, however, the first half auctions are coming in well below projections - only $325 million, compared to the $941 million estimate. It’s a shame to leave all that money in the pockets of businesses, isn’t it?
- ⛽ Pain At The Pump - At the same time, Washington State has the highest gas prices in the country. The average at the moment is $4.32 per gallon, compared to the national average of $3.49. The key question is why are we paying so much more than everyone else? Note: the increase has been suspiciously in sync with the program’s introduction.
- 🤯 Gouging Vs Design - Proponents of the cap and trade program say it’s because of price gouging by Big Oil, and they’re preparing to push for anti-gouging laws to put a stop to it. Opponents say it’s the natural result of the cap and trade program itself, which is designed to raise prices and force lower usage. It should be noted that gouging claims are based on oil companies making $0.80 per gallon in profits, but the government makes $0.94 per gallon in taxes. Hmm… 🤔
- 🗳️ Let The People Speak - Enter Initiative 2117, a bill to repeal the state’s cap and trade program. It is going to be on the November ballot for the people to vote on. There is speculation that at least some of the decline in auction revenue this year is because companies aren’t willing to spend big bucks on something that might go away if voters kill it.
🔥Bottom line: What you think is the cause of the painful gas prices probably depends on your political affiliation, but hopefully everyone will slow down and take a look at the facts, do their own research, and make a decision for themselves. We all get a shot to vote on it this fall, so make sure you’re educated and let your voice be heard!
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