Lawmakers, Inslee at odds over gas prices

POMEROY – Eastern Washington lawmakers are taking issue with a move by Gov. Jay Inslee to blame oil companies for skyrocketing fuel prices.

Rep. Mary Dye, R-Pomeroy, said inflated fuel prices are not because of big oil, but because of “big government gouging Washingtonians.”

Her comments followed a July 20 gubernatorial press conference on why Washington has the highest prices for gasoline in the nation.

As of press time Tuesday, July 25, Washington had the highest average price for regular gasoline at $4.86 per gallon.

That was 2 cents higher than California, at $4.84, and $1.02 more than Idaho, where the average was $3.84.

During the press conference, Inslee announced plans to introduce legislation targeting oil company prices.

"Oil and gas pollution is attacking our state and attacking our children's future,” Inslee said. “And indeed, attacking the entire nation and planet.”

Dye and Sen. Mark Schoesler, R-Ritzville, however, blamed Inslee and state government.

“Washington state has the highest gas prices in the nation because of the governor’s cap-and-trade program that took effect in January,” Dye said. “Gov. Inslee’s new climate mandate, which is the most expensive of its kind in the nation, has forced fuel prices to rise by 50 cents per gallon in our state.”

“The state is taking hundreds of millions of dollars out of drivers’ wallets and handing it to state agencies for various spending programs, all in the name of climate change,” Schoesler said. “I call it ‘government gouging.’”

His comments were emailed to constituents following the press conference.

Dye and Schoesler represent the 9th Legislative District, including eastern Franklin County, among other areas.

Inslee claims his policies are not driving the fuel price. He said its oil and gas companies making record profits, and that fuel prices are the choice of companies.

The governor targeted oil company profits, and pipeline maintenance for the high price at the pump, arguing that cap-and-trade didn’t cause inflated prices.

"These oil companies have been trying to blame the fact that we're holding them accountable for pollution, when in fact these prices went up because they shut down their pipeline," Inslee said.

Sen. Jeff Wilson, R-Longview, argues the price hikes are a result of impacts from the Climate Commitment Act, as that legislation has forced pipeline closures.

According to Wilson the situation has become a “political blame game” and that game comes at the expense of working families.

"While others may want to accuse oil companies of price gouging, I'll fire back and say- gouging has been occurring in the last few years' state budgets,” Wilson said. “It seems the state has had an enormous appetite to collect more money and spend away in our biennial budgets."

The Climate Commitment Act, according to Inslee’s office, is bringing revenue back into Washington communities to improve them.

Schoesler is one of 43 lawmakers who signed a letter authored by Sen. Chris Gildon, R-Puyallup, to the state Department of Ecology calling for immediate relief from high fuel prices.

The lawmakers attribute the price increase to cap-and trade legislation.

Under cap-and-trade, industries that emit carbon are required to buy additional "allowances" through auctions. Fuel costs are driven by the price of carbon-emission allowances.

In the most recent cap-and-trade auction, Washington allowances sold for $56.01 each, which is higher than anticipated.

According to Western States Petroleum Association CEO Catherine Rehies-Boyd, the Inslee Administration underestimated the costs of cap-and-trade.

"They claimed the program would cost ‘pennies,’ but Washington's consumers are now paying 50 cents per gallon for just the cap-and-trade program," Rehies-Boyd said, noting the oil industry is also taxed for “tailpipe emissions,” and the cost of allowances has been estimated to contribute an additional $.45 cents per gallon.

The costs are eventually passed on to consumers.

Inslee wants oil companies to open their books to the state to look for evidence of price gouging. If found, the state could levy penalties.

Wilson says while he also wants to see a cleaner environment, but he thinks there is a better way to get the results.

"It's too much too soon,” Wilson said. "This Climate Commitment Act has proved to be a little too aggressive. It's so aggressive that it's not awarded us with the No. 1 state in the nation for how expensive gas is."

Schoesler said Inslee should stop “demonizing” oil companies.

“Our neighboring states have much lower prices,” he said. “Oregon and Idaho don’t have cap-and-trade. It’s obvious that Washington’s cap-and-trade program is why our state has the highest gas prices in America.

“While most of the nation is enjoying gas prices below $4 a gallon, people in our state have been forced to pay about $5 a gallon for several weeks, and prices in Washington likely are going to keep rising.