Title
Approval of a Resolution Expressing City Council Opposition to Washington State Ballot Initiative No. 2117 Concerning Carbon Credit Tax Trading
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Accept testimony from everyone who wishes to speak for or against the Initiative Measure No. 2117.
Motion if Council wishes to oppose the Initiative: Move to Adopt the Resolution Expressing City Council Opposition to Initiative Measure No. 2117 concerning Carbon Credit Tax Trading
No action is needed if the City Council does not wish to adopt the Resolution.
Report
Issue:
Whether to oppose Initiative No. 2117 to Washington’s voters, which 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.
Staff Contact:
Pamela Braff, PhD, Director of Climate Programs, Office of Community Vitality, 360.753.8249
Presenter(s):
Pamela Braff, PhD, Director of Climate Programs
Background and Analysis:
The City Council requested this matter be placed on a City Council agenda so that the Council could conduct a public hearing and hear from community members in support of or opposed to Initiative No. 2117.
In accord with RCW 42.17A.555, any action taken by the Council to support or oppose a ballot proposition must be done at a properly noticed open public meeting with an opportunity for anyone to comment for or against the ballot measure prior to City Council action.
Climate Commitment Act
In 2021, the Washington State Legislature adopted Senate Bill 5126, known as the Climate Commitment Act (CCA). The CCA is a cap-and-invest program designed to help Washington meet its goal of reducing carbon emissions by 95% by 2050. The CCA sets an annual greenhouse gas emissions limit for major emitters and lowers that limit over time to help achieve statewide emissions reduction goals. Under the CCA, the largest emitting sources and industries are required to purchase allowances for the emissions they produce. Allowances can be obtained through auctions hosted by the Department of Ecology or can be bought and sold on a secondary market.
The proceeds generated from CCA auctions must be invested in climate projects across the state, including projects to increase climate resiliency, fund alternative transportation grant programs, and help Washington transition to a low-carbon economy. At least 35% of auction proceeds must be used for projects that provide a direct benefit to people in communities disproportionately impacted by environmental harms, and at least 10% of auction proceeds must be used for projects with Tribal support.
In 2024, the City of Olympia was awarded more than $2.5 million in grant funding made possible by the CCA, including:
• $386,250 to install EV charging stations at five multifamily sites, two fleet depot sites, and four City workplace sites (funded through the Washington Electric Vehicle Charing Program; WAEVCP).
• $2,053,000 to install solar energy projects at Olympia Fire Station 1 and the Armory (funded through Energy Programs in Communities; EPIC).
• $150,000 to develop the Comprehensive Plan climate element (funded through a Washington Department of Commerce Climate Planning Grant).
The Climate Commitment Act also establishes a program for the Department of Ecology to reduce emissions of certain air pollutants (particulate matter, ozone, nitrogen dioxide, carbon monoxide, lead, and sulfur dioxide) in communities that are overburdened and highly impacted by air pollution.
Washington State Ballot Initiative 2117
If approved by Washington voters, Initiative Measure No. 2117 (I-2117) would repeal the Climate Commitment Act, and bar state agencies from implementing carbon tax credit trading programs. Repealing the Climate Commitment Act would eliminate the climate and air quality programs described above as well as a funding source for investments in climate projects throughout the state.
Climate Analysis:
Passage of I-2117 would negatively impact the City’s ability to achieve adopted greenhouse gas emissions reduction goals, by reducing funding for emissions reduction grants and loans to local governments and eliminating the state-wide cap on emissions from large polluters operating in Washington state.
Equity Analysis:
Addressing environmental justice is a priority focus area for projects funded by the CCA. At least 35% of the CCA auction proceeds are required to be used for projects that provide a direct benefit to people in communities disproportionately impacted by environmental harms. Additionally, at least 10% of auction proceeds must be used for projects with Tribal support. Passage of I-2117 would limit funding for local and statewide projects intended to address existing environmental health disparities and benefit overburdened communities that are disproportionately impacted by environmental harms.
The Climate Commitment Act also establishes a program for the Department of Ecology to reduce emissions of certain air pollutants (particulate matter, ozone, nitrogen dioxide, carbon monoxide, lead, and sulfur dioxide) in communities that are overburdened and highly impacted by air pollution. Repealing the Climate Commitment Act would eliminate this air quality program.
Neighborhood/Community Interests (if known):
Not known.
Financial Impact:
The City of Olympia has received climate-related state grants made possible by the CCA, which are described above. Passage of Initiative 2117 would eliminate or significantly restrict access to similar state climate funding in the future.
Options:
1. Approve the Resolution opposing Initiative No. 2117, which would prohibit state agencies from imposing any type of carbon credit trading, and repeal legislation establishing a cap and invest program to reduce greenhouse gas emissions.
2. Approve the Resolution with modifications.
3. Do not approve the Resolution.
Attachments:
Resolution