Gov. Bob Ferguson is rejecting a lead Republican’s proposal to temporarily suspend Washington’s cap-and-trade program to decrease prices at the pump.
In the last three months, retail gasoline in Washington has increased by $1.63 a gallon on average, according to the data from the U.S. Energy Information Administration. And on Monday, the average price for a gallon of regular here was $5.70, $1.38 more than the nationwide average, according to AAA.
State Sen. Chris Gildon, R-Puyallup, urged Ferguson in a May 20 letter to use his emergency declaration power as governor to temporarily suspend the Climate Commitment Act. The law requires companies to buy allowances from the state for their air pollution.
“The cost of gas already has been higher in Washington than all but one or two states for the past few years,” wrote Gildon, who is Senate Republicans’ lead on the operating budget. He suggested pausing the law could reduce the wholesale price of gasoline by about 50 cents per gallon “immediately,” and that prices would begin to fall at the pump within a week.
Asked about Gildon’s letter, a spokesperson for Ferguson dismissed the idea.
“The high gas prices caused by President Trump’s war in Iran does not constitute an emergency that allows the governor to exercise his extraordinary emergency powers,” said Brionna Aho, communications director for the Office of the Governor.
“While the governor appreciates Sen. Gildon’s extremely broad interpretation of the governor’s authority, a more constructive way to address the dramatic recent increase in gas prices would be to contact the man responsible for that increase: President Trump,” Aho added.
She also pointed to another analysis from 2024, indicating that Gildon overstated the potential savings.
It’s not the first time the idea has come up in recent months. U.S. Rep. Michael Baumgartner, R-Wash., called on Ferguson and Democratic legislative leaders in March to suspend the Climate Commitment Act to help curb fuel prices.
When the federal Canadian government ended its fuel tax in April due to the war, prices immediately dropped by the exact amount you would expect, said Todd Myers, vice president for research at the Washington Policy Center.
Ferguson could use a similar approach by pausing cap-and-trade auctions for a quarter, Myers said.
In doing so, large corporations would potentially save millions. During the first quarter of this year, an auction generated nearly $183 million in revenue for the state.
The vast majority of state carbon taxes are passed along to consumers, Myers told the Standard. For retail gas, that’s about 52 cents per gallon, he added. Myers said his calculation is based on information from the Environmental Protection Agency and the California Legislative Analyst’s Office.
Revenue from the auctions has benefited the state by expanding access to clean energy and more transportation options, and by creating jobs, said Leah Missik, legislative director for Climate Solutions.
“Letting big polluters off the hook will make our lives harder,” Missik said. “We need to focus on boosting local clean energy.”
Since the war in Iran began, elected leaders in several states have considered gas tax holidays as a way to ease the strain of high fuel prices for consumers. The idea has failed to gain momentum here in Washington.
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