Washington Business Fall 2016 | Washington Business | Page 39

business backgrounder | regulatory

I-732: A Taxing Argument
Voters in Washington state will have their say this fall on Initiative
732, creating a new energy tax, but it could prove a costly economic
gamble with little or no change in carbon emissions.
Bobbi Cussins
Before the current push for climate and carbon emissions reductions
at the state and federal capitals, Washington’s employers were already
national leaders in carbon emissions reductions. But, that fact isn’t
deterring Carbon Washington, the group asking voters to approve a new
and untested energy tax in Initiative 732 at the November ballot box.
Washington state employers are proven leaders and innovators in energy
conservation, carbon reduction, and environmental efforts.
Since 1990, Washington’s population has increased by 43 percent and
the economy has increased by 260 percent, yet carbon dioxide emissions
from the commercial and industrial sectors have decreased by 18 percent,
according to data from the U.S. Environmental Protection Agency.
Undeterred by these facts, supporters of Initiative 732 will ask voters
this fall to ignore Washington’s position as a national and global leader
in carbon reductions and environmental stewardship and approve a new
carbon tax, or a hefty tax on energy.
AWB is leading opposition to the initiative as part of ensuring the
competitiveness of the state and protecting consumers, particularly those
on a fixed income.

Initiative 732 was an initiative to the 2016
Legislature. Lack of action on the measure means
it automatically qualifies for the November 2016
general election ballot.

“The implementation of Initiative 732 will likely
result in increased fuel and electrical costs and have
a negative impact on our competitive position.”

If enacted, I-732 would impose a $15 per ton fee on
all emissions of carbon dioxide in the state. In year
two, the fee would jump to $25 and would accelerate
at a 3.5 percent rate every year thereafter until it hits
$100 per ton.

— Kyle England, senior manager, human resources and external
affairs, Kaiser Aluminum

i-732: the energy tax
Carbon Washington, the architect of I-732, based its proposal on the
premise that Washington employers and residents need to do more to
lower carbon emissions, despite having the eighth lowest per capita
carbon emissions in the nation. The only way to change behavior, the
group determined, is to impose a new tax on energy.
Initially introduced as an initiative to the Legislature this year, it
failed to gain traction but the move automatically qualified I-732 for the
November ballot.

at a glance

I-732 would increase the cost of fuel by 25 cents,
the price of electricity by 5 percent and the cost of
natural gas by 15 percent by 2018.
In exchange for higher energy prices, I-732 would
give certain employers a business and occupation tax
reduction and lower the state sales tax by 1 percent.
The Association of Washington Business is leading
the opposition to I-732.

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