Climate investments in Whatcom, Skagit threatened by statewide repeal initiative

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Hundreds of millions of dollars in infrastructure and energy investments are at risk in Whatcom and Skagit counties if Initiative 2117, a Climate Commitment Act repeal intended to lower gas prices in the state, is approved by voters in the November election.

The Climate Commitment Act (CCA) is a cap-and-trade, or as Washington calls it, “cap-and-invest,” program that, since it went into effect in January 2023, has brought in $2.2 billion through the sale of allowances or pollution permits at state auctions. The program is designed to decrease carbon emissions by major emitters, and the revenue goes to a dizzyingly broad range of climate-related community projects — 37 state agencies are authorized to spend the funds.

Some projects that have been funded partially or fully through CCA in this region include mature forest conservation in Lake Whatcom’s watershed; Skagit Public Utility District’s micro-hydroelectric plants; and solar power projects in public schools. CCA funds were used as seed money to apply for a $1 billion federal infrastructure grant to establish a “hydrogen hub” in the region.

Last year, many blamed the state’s newly implemented cap-and-invest program when Washington gas prices rose until they were the highest in the country ($4.95 per gallon on July 11, 2023, according to AAA), although other factors like geopolitics also played a role in the spike. (On July 31, 2024, state gas prices were at $4.25, behind California and Hawaii.)

In response to high gas prices, a CCA repeal campaign spearheaded by political action committee Let’s Go Washington turned in nearly 420,000 signatures last November to get Initiative 2117 on the ballot this year. In response, a coalition of more than 350 organizations have assembled to oppose the initiative, including local nonprofits RE Sources and Sustainable Connections, as well as the Whatcom and Skagit Democratic parties.

The state Office of Financial Management analyzed the fiscal impact of the ballot initiative and found if the cap-and-invest program is ended, it will cost the state $3.8 billion in revenue through 2029 and will reduce or eliminate funding for emissions reduction, transit, pedestrian safety, ferry electrification, air quality improvement, renewable energy, grid modernization, ecosystem protection, fire prevention and salmon habitat restoration. (The fiscal impact statement will be included in the general election voter guide.)

At least 35% of CCA funds are required to go to projects that benefit overburdened communities, and at least 10% must go to projects with tribal support. On July 29, the state Department of Commerce announced an energy credit program for eligible electric utility customers funded through the CCA. Households enrolled in a utility’s low-income assistance program will automatically receive a $200 credit on their power bill by mid-September, and anyone else who fits the criteria can apply online for the credit.

Brian Heywood, the founder of Let’s Go Washington, has called the energy credits a “bribe” to voters that conveniently will hit accounts weeks before the election. But state Rep. Alex Ramel said the purpose of the energy credit and other incentives like home energy efficiency improvements, discounted electric vehicle leases and e-bike rebates, is to ensure that low-income households can participate in a green economy without big overhead costs.

“The intention is to make sure our transition to a clean energy future doesn’t leave anyone behind — rural communities, the workforces for oil and gas companies, low-income folks, disadvantaged communities,” Ramel said. “Ideally we can be leaders and show the rest of the country not just how to transition to a clean future but how to have a really just transition.”

Future spending is contingent on what the voters decide, and local agencies are trying to plan around that uncertainty. Whatcom Transportation Authority’s 2024-2029 Transit Development Plan, which the agency voted to approve on Aug. 1, explicitly states that the potential repeal of CCA funding will have a “significant impact” on big future projects like a remodel of the Bellingham Station, a rapid transit program and carbon footprint reduction.

The 2025 budget passed by the state Legislature has a slate of multimillion-dollar projects in Whatcom and Skagit counties that are contingent on the CCA still being in place next year — projects like flood reduction on the Nooksack River, Padden Creek fish passage improvements, clean energy projects by the Lummi Indian Business Council, electrification of Western Washington University’s steam plant and a new electric ferry for Guemes Island.

“Our whole plan for rebuilding our state’s ferry fleet is dependent on Climate Commitment Act funding,” Ramel said. “The system has been under-invested in for years and that has real, significant impacts on folks.”

He also pointed to two local clean energy projects that rely on CCA funding: the exploration of a geothermal power source near Mount Baker; and thermal energy networks such as the new partnership between Puget Sound Energy and Corix that provides efficient heating and cooling to commercial and residential development on Bellingham’s waterfront.

“If the initiative passes, it will have an immediate and direct impact on a lot of important clean energy and climate work,” Ramel said.

However, he added, he’s optimistic that voters will “reject it resoundingly.”

“This is a popular program that’s working well,” Ramel said. “When people learn about it they get excited. It’s not some obscure policy that doesn’t do anything for people.”

Julia Tellman writes about civic issues and anything else that happens to cross her desk; contact her at juliatellman@cascadiadaily.com.