Washington Initiative 2117, Prohibit Carbon Tax Credit Trading and Repeal Carbon Cap-and-Invest Program Measure (2024)

Washington Initiative 2117
Election date November 5, 2024
Topic Taxes and Energy
Status On the ballot
Type State statute	Origin Citizens

Washington Initiative 2117, the Prohibit Carbon Tax Credit Trading Initiative, is on the ballot in Washington as an Initiative to the Legislature, a type of indirect initiated state statute, on November 5, 2024.

A "yes" vote supports prohibiting any state agencies from implementing a cap and trade or cap and tax program and repealing the 2021 Washington Climate Commitment Act (CCA), a state law that provided for a cap and invest program designed to reduce greenhouse gas (GHG) emissions by 95% by 2050.

A "no" vote opposes prohibiting state agencies from implementing a cap and trade or cap and tax program and opposes repealing the 2021 Washington Climate Commitment Act (CCA), a state law that provided for a cap and invest program designed to reduce greenhouse gas (GHG) emissions by 95% by 2050.

Overview

What would Initiative 2117 do?

See also: Text of measure

Initiative 2117 would prohibit any state agencies from implementing a cap and trade or cap and tax program.^[1]

The initiative would repeal the 2021 Washington Climate Commitment Act (CCA), a state law that provided for a cap and invest program designed to reduce greenhouse gas (GHG) emissions by 95% by 2050. The cap and invest program sets a cap on the total carbon emissions in the state. Businesses with emissions exceeding 25,000 metric tons of carbon dioxide per year must purchase allowances equal to their allowed greenhouse gas emissions. The cap and invest program was designed to allow businesses that reduce emissions to sell their remaining carbon emission allowance permits to other companies, thereby incentivizing companies to lower their emissions.^[1]

What are supporters and opponents saying about the initiative?

See also: Support and Opposition

Initiative sponsor State Rep. Jim Walsh (R) said, "This cap and trade gas tax scheme is what is making Washington’s price of living the highest in the nation alongside California. This cap and trade gas tax scheme has created over $1.5 BILLION for Olympia Bureaucrats in this year alone – paid for by working families – and it doesn’t actually reduce emissions. ... It punishes working families and doesn’t actually reduce emissions in our state. People still need to drive to work, and go to the grocery store, and drop kids off at school, and heat their homes. It doesn’t just stop at our cars. It’s directly driving up the price of our groceries and other goods in the supply chain. And it is driving up your home utility costs."

Michael Mann, the executive director for Clean and Prosperous Washington, said, "If we are concerned about the cost of transportation for Washington businesses and residents, we have to keep our focus away from the arm-waving of the variations of gas prices that we’ve suffered through for decades and really look to true solutions. And the true solution to lower our transportation costs is to get off of fossil fuels."^[2]

Has Washington voted on carbon-related policies before?

See also: Background

In 2018, Washington voters rejected Initiative 1631, which would have enacted a carbon emissions fee of $15 per metric ton beginning in 2020 and increasing by $2 each year until the state's greenhouse gas reduction goals were met. Revenues would have been used to fund various programs and projects related to the environment.

Washington voters defeated a carbon tax initiative—Initiative 732—in 2016.

How did this initiative get on the ballot?

See also: Path to the ballot and Let's Go Washington 2024 initiatives

Let's Go Washington, led by State Rep. Jim Walsh (R-19) and conservative donor Brian Heywood, sponsored six Initiatives to the Legislature. The Democratic-controlled state legislature enacted three of the initiatives into law. Legislative Republicans were unanimous in their support for the three initiatives, while Democrats were divided. The legislature took no action on the other three initiatives, so they were placed on the 2024 ballot for voter approval or rejection. The other initiatives on the 2024 ballot are Initiative 2109, which was designed to repeal the capital gains tax, and Initiative 2124, which was designed to allow individuals to opt out of the WA Cares payroll tax and long-term health services program.

From 1912, when the state’s initiative process was established, to 2023, just six Initiatives to the Legislature (ITLs) have received legislative approval. With three approved in 2024, the total increases to nine, a 50% increase.

Measure design

This initiative would prohibit any state agencies from implementing a cap and trade or cap and tax program.^[3]

The initiative would repeal the 2021 Washington Climate Commitment Act (CCA), a state law that provided for a cap and invest program designed to reduce greenhouse gas (GHG) emissions by 95% by 2050. The cap and invest program, overseen by the Washington Department of Ecology, sets a cap on the total carbon emissions in the state. Under the program, businesses with emissions exceeding 25,000 metric tons of carbon dioxide per year must obtain allowances equal to their allowed greenhouse gas emissions. The allowances can be obtained through quarterly auctions hosted by the state department of ecology or on a secondary market similar to a stock market. The cap and invest program was designed to allow businesses that reduce emissions to sell their remaining carbon emission allowance permits to other companies, thereby incentivizing companies to lower their emissions.^[4][5]

About 75% of the state's total emissions are covered by the CCA's cap and invest program. Business types covered under the cap and invest program include fuel suppliers, natural gas and electric utilities, waste-to-energy facilities (beginning in 2027), and railroads (beginning in 2031). The program exempts emissions from fuel used for agricultural purposes, aviation fuels, and marine fuels combusted outside of the state.^[5]

Businesses that do not comply with the program are subject to a fine of up to $50,000 per violation per day.^[5]

Businesses that are classified as emissions-intensive, trade-exposed or (EITEs) are given a certain amount of allowances at no cost through 2034. One example of a large businesses with high emissions in Washington that is classified as an EITE is Boeing, which operates major airplane manufacturing and assembly facilities throughout the state, including its facility in Everett.^[6][7]

Text of measure

Ballot title

The ballot title for the initiative is below:^[4]

“

Initiative Measure No. 2117 concerns carbon tax credit trading. This measure would prohibit state agencies from imposing any type of carbon tax credit trading, and repeal legislation establishing a cap and invest program to reduce greenhouse gas emissions. Should this measure be enacted into law? Yes [ ] No [ ] [8]

”

Ballot summary

The ballot summary for the initiative is below:^[4]

“

This measure would prohibit state agencies from imposing any type of carbon tax credit trading, including “cap and trade” or “cap and tax” programs, regardless of whether the resulting increased costs are imposed on fuel recipients or fuel suppliers. It would repeal sections of the 2021 Washington Climate Commitment Act as amended, including repealing the creation and modification of a “cap and invest” program to reduce greenhouse gas emissions by specific entities. [8]

”

Full text

The full text of the measure can be read below:

Support

Let's Go Washington is sponsoring the initiative.^[9]

Supporters

Officials

• State Rep. Jim Walsh (R)

Individuals

• Brian Heywood - Founder of Let's Go Washington

Arguments

Opposition

Stop Greed, sponsored by the Permanent Defense PAC, is leading the campaign in opposition to the initiative, as well as the two other initiatives sponsored by Let's Go Washington on the 2024 ballot.^[10]

Opponents

Organizations

• Permanent Defense

Arguments

Campaign finance

See also: Campaign finance requirements for Washington ballot measures

Let's Go Washington and Taxpayers Accountability Alliance registered to support the initiative. Together, the committees raised $8.11 million. The committees are also registered to support the two other initiatives (Initiative 2124 and 2109) on the 2024 ballot.^[11]

No on 2117 and Stop Greed registered to oppose the initiative. Together, the committees raised $4.86 million. Stop Greed is also registered to oppose the two other initiatives (Initiative 2124 and 2109) on the 2024 ballot.^[11]

Since the committees are registered to support or oppose multiple measures, it is impossible to distinguish between funds spent on each individual measure.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$6,856,287.84	$1,260,834.54	$8,117,122.38	$6,896,121.98	$8,156,956.52
Oppose	$4,713,915.22	$149,074.28	$4,862,989.50	$223,450.42	$372,524.70

Support

The following table includes contribution and expenditure totals for the committees in support of Initiative 2117.^[12]

Committees in support of Initiative 2117
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Let's Go Washington	$6,854,396.00	$1,260,834.54	$8,115,230.54	$6,852,805.34	$8,113,639.88
Taxpayers Accountability Alliance	$1,891.84	$0.00	$1,891.84	$43,316.64	$43,316.64
Total	$6,856,287.84	$1,260,834.54	$8,117,122.38	$6,896,121.98	$8,156,956.52

Donors

Donors to the support campaign were as follows:^[12]

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Brian Heywood	$5,176,000.00	$1,229,965.16	$6,405,965.16
Phil Scott	$250,000.00	$0.00	$250,000.00
Steve Gordon	$150,000.00	$9,221.00	$159,221.00
Kemper Holdings, LLC	$100,000.00	$0.00	$100,000.00
Peter Plath	$100,000.00	$0.00	$100,000.00

Opposition

The following table includes contribution and expenditure totals for the committees in opposition to Initiative 2117.^[12]

Committees in opposition to Initiative 2117
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
No on 2117	$4,705,512.22	$149,030.89	$4,854,543.11	$216,026.21	$365,057.10
Stop Greed	$8,403.00	$43.39	$8,446.39	$7,424.21	$7,467.60
Total	$4,713,915.22	$149,074.28	$4,862,989.50	$223,450.42	$372,524.70

Donors

Donors to the opposition campaign were as follows:^[12]

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Bill Gates	$1,000,000.00	$0.00	$1,000,000.00
Chris Stolte	$1,000,000.00	$0.00	$1,000,000.00
Craig McKibben	$500,000.00	$0.00	$500,000.00
Far Star Action Fund	$500,000.00	$0.00	$500,000.00
Sarah Merner	$500,000.00	$0.00	$500,000.00
Northwest Progressive Institute	$6,000.00	$32.83	$6,032.83
Permanent Defense PAC	$1,000.00	$0.00	$1,000.00
Mathew Roling	$250.00	$0.00	$250.00
Terry Oliver	$250.00	$0.00	$250.00

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

Washington carbon and climate-related policy

• 2021: The Washington State Legislature passed the Washington Climate Commitment Act (CCA), with Democrats in favor and Republicans opposed.^[13] The law provided for a cap and invest program designed to help the state meet its goals of reducing greenhouse gas emissions to 45% below 1990 levels by 2030, 70% below 1990 levels by 2040, and 95% below 1990 levels and achieving net-zero emissions by 2050. The cap and invest program sets a cap on the total carbon emissions in the state and requires businesses with emissions exceeding 25,000 metric tons of carbon dioxide per year (such as fuel suppliers and natural gas and electric utility companies) to obtain allowances equal to their allowed greenhouse gas emissions. The cap and invest program was designed to allow businesses that reduce emissions to sell their remaining carbon emission allowance permits to other companies.^[14]

• 2014: In 2014, Washington Governor Jay Inslee (D), who supports carbon tax programs, created the Carbon Emissions Reduction Taskforce (CERT) which was composed of 21 leaders from business, labor, health and public interest organizations and tasked with providing recommendations to the governor on design and implementation of a market-based carbon pollution program. The task force's final report can be read here.^[15]

• 2009: The Legislature approved the State Agency Climate Leadership Act, which established greenhouse gas emission limits for state government. The act requires state agencies to track, report, and reduce their greenhouse gas emissions.^[15]

Greenhouse gas emissions limit

Greenhouse gases (GHGs) are gases that trap the sun's heat in the atmosphere. According to the state department of ecology, "When the sun’s energy reaches the Earth's atmosphere, some of it is reflected back to space and the rest is absorbed and trapped in the lower atmosphere, heating the Earth. This is called the 'greenhouse effect.' Up to a point, the greenhouse effect helps keep the Earth at a temperature suitable for life. As more greenhouse gases are pumped into the atmosphere, however, the temperature increases and there's a risk of creating feedback effects that could make the Earth warmer still."^[16]

In 2020, the state legislature passed a bill limiting greenhouse gas emissions requiring the state to reduce emissions levels as follows:^[16]

• 2020: reduce to 1990 levels. ​
• ​2030: 45% below 1990 levels.
• 2040: 70% below 1990 levels.
• 2050: 95% below 1990 levels and achieve net zero emissions.

Initiative 1631 of 2018, carbon fee initiative

See also: Washington Initiative 1631, Carbon Emissions Fee Measure (2018)

In 2018, Washington voters rejected Initiative 1631, which would have enacted a carbon emissions fee of $15 per metric ton beginning in 2020 and increasing by $2 each year until the state's greenhouse gas reduction goals were met. Revenues would have been used to fund various programs and projects related to the environment.

Initiative 1631 was supported by Governor Jay Inslee (D), U.S. Senator Bernie Sanders (I-VT), Bill and Melinda Gates, as well as various progressive and climate-oriented organizations such as the Nature Conservancy and League of Conservation Voters. Opponents of the initiative included the Western States Petroleum Association and the Association of Washington Business, as well as oil producing companies including BP America, Phillips 66, Andeavor, American Fuel and Petrochemical Manufacturers, and the U.S. Oil and Refining Company.

The initiative was defeated with 43% of voters in favor and 57% opposed.

Initiative 732 of 2016, carbon tax initiative

See also: Washington Carbon Emission Tax and Sales Tax Reduction, Initiative 732 (2016)

Washington voters defeated a carbon tax initiative—Initiative 732—in 2016, with 59.25 percent of voters rejecting it. I-732 was backed by Carbon Washington and would have established a tax on carbon emissions at $15 per metric ton of emissions in July 2017, $25 in July 2018, and then increased by 3.5 percent plus inflation each year until the tax reached $100 per metric ton. The tax would have been phased in more slowly for farmers and nonprofit transportation providers. The designers of Initiative 732 sought to neither increase nor decrease state revenues. Rather, the general goal behind the tax was to encourage families and firms to reduce fossil fuel consumption and greenhouse gas emissions.^[17] To meet this goal of remaining "revenue neutral," Initiative 732 would have lowered the state sales tax from 6.5 to 5.5 percent, increased the Working Families Tax Credit for low-income families, and reduced the business and occupation tax rate from 0.484 to 0.001 percent.

Energy policy ballot measures

See also: Energy on the ballot and List of Washington ballot measures

Ballotpedia has covered 13 ballot measures relating to state and local energy policy in Washington.

1. Washington SJR 120, Energy Conservation Financing Amendment (1979)
2. Washington Referendum 18, Municipal Energy Measure (1934)
3. Washington Initiative 937, Energy Conservation by Electric Utilities Measure (2006)
4. Washington Initiative 52, Municipal Authority Over Electrical Facilities Measure (1924)
5. Washington Referendum 3, Sale of Surplus Municipal Energy Measure (1924)
6. Washington Bonds for Energy Efficiency Projects, Referendum 52 (2010)
7. Washington HJR 10, Public Energy Production and Development Amendment (1936)
8. Washington HJR 4223, Extension of Energy Conservation Amendment (1988)
9. Washington Initiative 394, Voter Approval for Energy Project Bonds Measure (1981)
10. Washington Modifying Tax Exemption Criteria for Alternative Fuel Vehicles, Advisory Vote 15 (2016)
11. Washington Advisory Vote 19, Non-Binding Question on Oil Spill Tax Repeal (2018)
12. Washington Carbon Emission Tax and Sales Tax Reduction, Initiative 732 (2016)
13. Washington Prohibit Restrictions on Natural Gas Access Initiative (2024)

Let's Go Washington 2024 initiatives

See also: Let's Go Washington PAC (2024)

Let's Go Washington, led by State Rep. Jim Walsh (R) and conservative donor Brian Heywood, sponsored six Initiatives to the Legislature. The Democratic-controlled state legislature enacted three of the initiatives into law without being placed on the ballot. The legislature took no action on the other three, so they were placed on the ballot.

The conservative PAC Let’s Go Washington was behind the six Initiatives to the Legislature. State Rep. Jim Walsh (R-19), who is also chairperson of the Washington Republican Party, filed the initiatives. Brian Heywood, CEO of Taiyo Pacific Partners, founded the PAC.

Democrats control both chambers of the Washington State Legislature. Legislative Republicans were unanimous in their support for the three initiatives, while Democrats were divided. However, a majority of Democrats supported each of the three.

From 1912, when the state’s initiative process was established, to 2023, just six Initiatives to the Legislature (ITLs) have received legislative approval. With three approved in 2024, the total increases to nine, a 50% increase.

Path to the ballot

See also: Laws governing the initiative process in Washington

The state process

In Washington, the number of signatures required to qualify an indirectly initiated state statute—called an Initiative to the Legislature in Washington—for the ballot is equal to 8 percent of the votes cast for the office of governor at the last regular gubernatorial election. Initial filings for indirect initiatives cannot be made more than 10 months before the regular session at which their proposal would be presented to lawmakers. Signatures must be submitted at least 10 days prior to the beginning of the legislative session in the year of the targeted election.

The requirements to get an Initiative to the Legislature certified for the 2024 ballot:

• Signatures: 324,516 valid signatures
• Deadline: December 29, 2023, by 5:00 p.m. local time

The secretary of state verifies the signatures using a random sample method. If the sample indicates that the measure has sufficient signatures, the measure is certified to appear before the legislature. If the legislature does not approve the measure, it is certified to appear on the ballot. However, if the sample indicates that the measure has insufficient signatures, every signature is checked. Under Washington law, a random sample result may not invalidate a petition.

In Washington, the Legislature has three options regarding Initiatives to the Legislature:

• (1) The Legislature can adopt an Initiative to the Legislature, in which case the initiative is enacted into law without a vote of electors;
• (2) The Legislature can reject or not act on the initiative, in which case the initiative is placed on the ballot at the next state general election; or
• (3) The Legislature can approve an alternative to the proposed initiative, in which case both the original proposal and the legislative alternative are placed on the ballot at the next state general election.

Details about this initiative

• State Rep. Jim Walsh (R-19) filed the initiative on May 19, 2023. Ballot language was issued for the initiative on June 2, 2023.^[4]
• Let's Go Washington submitted 466,072 signatures for the initiative to the secretary of state's office on November 21, 2023.^[18]
• On January 16, 2024, Washington Secretary of State Steve Hobbs certified that enough valid signatures were submitted and that the initiative was certified to the legislature. In a random sample of 3% of submitted signatures, it was determined that 77.69% of the submitted signatures were valid, indicating that 362,091 signatures were valid.^[19]
• The Washington State Legislature adjourned the 2024 legislative session on March 7, 2024, without taking action on the initiative and without proposing an alternative, thereby certifying the initiative for the ballot.

How to cast a vote

See also: Voting in Washington

Click "Show" to learn more about current voter registration rules, identification requirements, and poll times in Washington.

How to cast a vote in Washington

Poll times Washington is an all-mail voting state. Individuals who prefer to vote in person rather than by mail may do so at local voting centers, which are open for 18 days prior to the election. The voting period ends at 8:00 p.m. on Election Day. Contact your county elections department for more information on voting center locations and times.[20] Registration Check your voter registration status here. To vote in Washington, one must be a citizen of the United States, a resident of the state, and at least 18 years of age.[21] One may register to vote online, by mail, or in-person at a county elections department. Registration must be completed eight days in advance if done by mail or online. In-person registration is available through Election Day.[22][23] In 2018, Washington lawmakers enacted legislation providing for same-day voter registration and automatic voter registration.[24] Automatic registration Washington automatically registers eligible individuals to vote through the Department of Motor Vehicles, health benefit exchange, and other state agencies approved by the governor.[24] Online registration See also: Online voter registration Washington has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration Washington allows same-day voter registration.[24] Residency requirements Washington law requires 30 days of residency in the state before a person may vote.[21] Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Washington does not require proof of citizenship for voter registration. Verifying your registration The site Vote WA, run by the Washington Secretary of State office, allows residents to check their voter registration status online. Voter ID requirements Washington is an all-mail voting state and does not require voters to present photo identification (ID). Voters may choose to vote in person at a local voting center. According to state law RCW 29A.40.160, “The county auditor shall require any person desiring to vote at a voting center to either sign a ballot declaration or provide identification.” Accepted forms of ID include driver's licenses, state ID cards, and student ID cards. For a list of all accepted forms of ID, see below.[25] The following list of accepted ID was current as of April 2023. Click here for the Washington State Legislature's voter ID regulations to ensure you have the most current information. Driver's license State identification card Student identification card Tribal identification card Employer identification card

See also

2024 measures 2024 ballot measures Taxes on the ballot Environment on the ballot 2024 petition deadlines

Washington Washington ballot measures Washington initiative laws

News and analysis Ballot measure lawsuits Ballot measure readability Ballot measure polls Ballot measure signature costs

External links

• Initiatives to the Legislature
• Initiative 2117 full text

Footnotes

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