Washington lawmakers propose $180 rebate for drivers from surplus cap-and-trade revenue

OLYMPIA, Wash. — A proposal heading to the Washington state Legislature could put more money back in drivers' pockets. Republican lawmakers are pushing for a rebate program in response to the state's cap-and-trade initiative that boosted gas prices as a way to help reduce carbon emissions.

Republican House Reps. April Connors and Mary Dye argue the cap-and-trade program made three times more revenue than expected, an excess of an estimated $1.3 billion. Their solution is to give that money back to registered car owners who are feeling the pain at the pump. Current AAA figures show Washington gas prices are among the most expensive in the country, averaging $4.15 per gallon.

"A couple of [my constituents] feel like they're back in the era of covid again where they are stuck at home because they don't have the money to go fill up their tanks," Rep. Connors explained.

Under the proposal, registered vehicle owners in Washington state would receive a $180 rebate check, or up to $360 per two-car family in July. The so-called Carbon Auction Rebate, or CAR, would distribute those one-time payments to the state's 6.8 million registered vehicle owners.

Just about everyone KOMO News crews talked to while they filled up on Wednesday -- some at more than $5.30 a gallon for premium -- agreed a rebate for consumers is a welcome use of that excess revenue.

“I’m grateful for anything that’s going to help me,” stated driver Gabriel Green from Seattle. “I hope it’s distributed to people who need it- people who are feeling the pressure most.”

Sen. Jamie Pedersen was a sponsor of the cap-and-trade program through the Climate Commitment Act. He argued the proposed rebate is directly contrary to the objective of the program designed to get people to use less gas, and pay for projects that are meant to slow or adapt to climate change.

“I think it’s pretty unlikely that we’re going to divide up all of the money that we got from the Climate Commitment Act, all the excess revenue, and give it back to people based on how much gas was consumed in the state,” Pedersen added. "We want people to take transit, we want people to use electric vehicles, or walk or bike."

He noted the funding has helped pay for investments in renewable energies, electric vehicle charging stations, and allows youth to ride public transit for free, among other things.

The legislative session starts in Olympia on Jan. 8.

Editor's note: A previous version of this story cited an official's statistic that the cap-and-trade program adds a cost of up to an extra 50 cents per gallon of gas. The Washington State Department of Ecology, which implements the state’s cap-and-invest program, said the added cost is much lower and we have requested additional details.