Washington state waters down cap-and-trade proposal to win industry support

Published 03:23 on May 12, 2015  /  Last updated at 03:37 on May 12, 2015  /  Americas, US  /  No Comments

Washington House Democrats have rewritten Governor Jay Inslee’s cap-and-trade proposal, introducing compensation packages for energy-intensive businesses and fuel-suppliers in order to secure industry support and move the bill through state Senate.

Washington House Democrats have rewritten Governor Jay Inslee’s cap-and-trade proposal, introducing compensation packages for energy-intensive businesses and fuel-suppliers in order to secure industry support and move the bill through state Senate.

Lawmakers have rewritten the December proposal to establish a cap-and-trade scheme, proposing tax credits for emitters covered by the programme.

Under the substitute bill, energy intensive industries that face competition from regions without a price on carbon would get parts of the costs associated with the scheme refunded.

“The credit is equal to fifty percent of the eligible costs incurred to satisfy the compliance obligation,” the new bill says.

Fuel suppliers would get rebates worth up to 75% of their compliance costs, according to AP.

The initial bill had passed through the House, but met resistance in the state Senate, which is controlled by Republicans.

The substitute bill is scheduled to for a hearing in the House Committee on Appropriations on May 14.

If adopted, Washington would launch a carbon market on July 1, 2016, with the aim of gutting emissions to 88.4 million tonnes of CO2e in 2020, 66.3 million tonnes in 2035, and 44.2 million in 2050.

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