Bill to Link Wash. Cap-and-trade with Calif.-Quebec Passes Both Houses
Sen. Joe Nguyen sponsored the bill to link Washington's cap-and-trade system with that shared by California and Quebec.
Sen. Joe Nguyen sponsored the bill to link Washington's cap-and-trade system with that shared by California and Quebec. | © RTO Insider LLC
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Washington’s Democratic-controlled House of Representatives approved a bill that will allow the state’s cap-and-trade program to link up with the system shared by California and Quebec.

Washington’s Democratic-controlled House of Representatives on Feb. 29 approved a bill that would allow the state’s cap-and-trade program to link up with the system shared by California and Quebec.  

Senate Bill 6058, sponsored by Sen. Joe Nguyen (D), passed the House 57-39 along party lines — just as it did in the Senate earlier this month. (See Carbon Market Linkage Bill Passes Wash. Senate.) 

The two houses must now reconcile minor changes added to the bill.  

Washington is negotiating with California and Quebec on potentially meshing their cap-and-trade programs with the expectation that a bigger market would soften carbon allowance prices, which then could reduce the state’s high gasoline prices.  

Linkage between the markets could take place no earlier than 2025. Looming over the development is a November referendum on whether to repeal Washington’s cap-and-invest program, which some have blamed for the state’s gas price increases.

House Republicans opposed the bill Feb. 29, spending the majority of a four-and-a-half-hour debate slamming cap-and-invest for boosting gas prices. When focused on the specifics of SB 6058, Republicans said they did not like tying Washington’s program to the much larger California one, which see its own unique ups and downs. They also voiced skepticism about claims that a larger market would decrease gas prices in the Evergreen State. 

“We’re going into an agreement without a clear understanding of the partners we want a relationship with,” Rep. Keith Goehner (R) said.  

“Fools rush in. We should not rush into any linkage,” said Rep. Jim Walsh (R), who is also one of the leaders of the initiative to repeal cap-and-invest. 

Majority Leader Joe Fitzgibbon (D) pointed out that a common argument against Washington’s efforts to combat climate change is that one state’s efforts won’t affect global warming. He said a carbon market combining Washington, California and Quebec would create a greater effect on reducing emissions. And Fitzgibbon noted that New York, Massachusetts and Maryland are watching Washington’s efforts with the idea of creating their own cap-and-trade programs to eventually join the bigger market. 

The bill “simply sets us up for success as we work with California and Quebec collectively to protect our air sheds from greenhouse gases,” said Rep. Beth Doglio (D).

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