Washington Business Fall 2016 | Washington Business | Page 41

business backgrounder | regulatory

Inc., a grower-owned food processing cooperative
with several plants in Washington state. “Many food
companies operate at extremely tight margins due to
the competitive nature of their businesses, and even
a slight cost increase will put Washington farmers
and food processors at a pricing disadvantage.”
AWB’s economic analysis also shows the impacts
of the new energy tax will be swift and expensive for
consumers.
If passed, the initiative would immediately
increase the price of gasoline by $.25 as well as raise
the cost of electricity by 5 percent and natural gas
prices by 15 percent.
“Our economic analysis is clear: Families living
paycheck to paycheck and on a fixed income will see
the cost to heat their homes, get to work and feed their
families rise due to this initiative,” Houskeeper said.
Not widely discussed, job leakage is a real
possibility if the energy tax is approved this fall.
“Initiative 732 lacks any consideration for energy
intensive and trade exposed companies such as
Kaiser Aluminum and, as a result, Washington
manufacturing will be ‘leaked’ to other states and/
or countries with less stringent rules and taxes
associated with carbon emissions. Leakage will harm
Washingtonians through job loss and economic
hardship as businesses leave the state,” England
explained.

“Since 2010, we have reduced
our per-unit energy cost and
reduced the carbon intensity of our
products by 15 percent.”
— Kyle England, senior manager, human
resources and external affairs, Kaiser Aluminum

WA
1990

1995

WASHINGTON HAS MADE GREAT PROGRESS
IN REDUCING CARBON DIOXIDE EMISSIONS

2000

2005

2010

2015

NOW

SINCE 1990

$$$

POPULATION HAS INCREASED BY

43%

CO2

ECONOMY HAS
INCREASED BY

260%

EMISSIONS

DOWN BY

18%

CO2 EMISSIONS FROM COMMERCIAL &

INDUSTRIAL SECTORS HAVE DECREASED BY 18%

BUT, I-732 PUTS THIS IN JEOPARDY BY HURTING

WASHINGTON FAMILIES AND WORKERS
INCREASES PRICE OF GAS BY

$.25 PER GALLON

ALMOST IMMEDIATELY

$

5%

15%

FAMILIES PAY $448 MORE

$800 MILLION
CUTS $800 MILLION FROM THE STATE BUDGET,
PUTTING FUNDING AT RISK FOR EDUCATION,
HEALTHCARE, AND PUBLIC SAFETY.

$11 BILLION

PER YEAR FOR ENERGY
MANUFACTURING WOULD HAVE NEARLY

15,000 FEWER JOBS
AGRICULTURE WOULD HAVE NEARLY

6,000 FEWER JOBS

TRADE DEFICIT INCREASE

washington employers already leading
on climate

WASHINGTON’S TRADE DEFICIT WILL
INCREASE TO $11 BILLION BY 2020,

INCREASING THE STATE’S DEPENDENCE ON GOODS AND
Employers, even in the most energy-intense
SERVICES FROM FOREIGN AND OTHER DOMESTIC SOURCES
industries, have invested hundreds of millions of
Economic analysis conducted by Energy Strategies, LLC October 2016
dollars to improve operational efficiency and reduce
Washington Office of Financial Management:
Fiscal Impact Statement for Initiative 732, August 2016
waste.
“Since 2005, Kaiser Aluminum has invested
Paid for by No on 732, sponsored by Association of Washington Business | 1414 Cherry Street SE, Olympia WA 98501
$240 million into the Trentwood facility located
Top 5 Contributors: Kaiser Aluminum, Ash Grove Cement Company, Inc., Northwest Pulp & Paper Association, Nucor Steel Seattle, Inc., Western Petroleum Marketers Association
in Spokane,” said England. “Kais