{"id":2283781,"date":"2024-06-26T09:00:00","date_gmt":"2024-06-26T13:00:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/initiative-to-repeal-cap-and-trade-may-already-be-lowering-carbon-auction-prices-washington-examiner\/"},"modified":"2024-06-26T09:08:44","modified_gmt":"2024-06-26T13:08:44","slug":"initiative-to-repeal-cap-and-trade-may-already-be-lowering-carbon-auction-prices-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/initiative-to-repeal-cap-and-trade-may-already-be-lowering-carbon-auction-prices-washington-examiner\/","title":{"rendered":"Initiative to repeal cap-and-trade may already be lowering carbon auction prices &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finitiative-to-repeal-cap-and-trade-may-already-be-lowering-carbon-auction-prices-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2283781&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In Washington state, the upcoming November ballot will include Initiative 2117, proposing\u200d to repeal the Climate Commitment Act and prevent the enactment of a cap-and-trade program by state\u2063 agencies. This \u2064initiative might already be\u200c influencing <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/obamas-longest-serving-cabinet-member-confirmed-to-bidens-cabinet\/\" title=\"Obama\u2019s Longest-Serving Cabinet Member Confirmed To Biden\u2019s Cabinet\">carbon credit<\/a> costs, as evidenced \u200dby \u200da notable drop in\u200b carbon credit prices in this year&#8217;s auctions compared to the previous year. Under the Climate \u200cCommitment Act, which started\u2064 in 2023, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/why-bidens-climate-emergency-is-worse-than-useless\/\" title=\"Why Biden's \"Climate Emergency\" Is Worse Than Useless\">major greenhouse gas emitters<\/a> are\u2064 required to buy emissions allowances. \u2063These allowances \u200bare sold\u200d at\u200c state-held\u200d quarterly auctions, and each carbon credit allows one ton of \u2062carbon dioxide or equivalent emissions. Critics have argued that these auctions raised gas prices by as much as 50 cents per gallon last year. In 2024, the auctions saw carbon credits sell at <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ozempic-wegovy-and-mounjaro-a-bargain-or-too-expensive\/\" title=\"Are Ozempic, Wegovy, and Mounjaro affordable or overpriced?\">significantly reduced prices<\/a> of $25.76 and $29.92, generating substantial revenue for the state. However, the specific impact of Initiative \u200b2117 on these price changes and market \u200dbehaviors remains speculative,\u2063 with the state Department of Ecology indicating active compliance with the Climate Commitment Act among businesses\u2063 and suggesting normal market fluctuations.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>(The Center Square) \u2013 A choice available to voters on the November ballot could already be saving them money at the pump. <\/p>\n<p>This November, voters in Washington state will have the final say on Initiative 2117, which would repeal the Climate Commitment Act and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gov-greg-abbott-issues-executive-order-banning-vaccine-mandates-regardless-of-approval-status\/\" title=\"Gov. Greg Abbott Issues Executive Order Banning Vaccine Mandates Regardless Of Approval Status\">prohibit state agencies<\/a> from implementing a cap-and-trade program.<\/p>\n<p>However, there is some evidence that <a href=\"https:\/\/www2.sos.wa.gov\/_assets\/elections\/initiatives\/finaltext_3038.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>I-2117<\/strong><\/a> may already be impacting the price of carbon credits, given a major decrease in the price of carbon credits during this year\u2019s first two auctions as compared to last year\u2019s auctions.<\/p>\n<p>Under the <a href=\"https:\/\/ecology.wa.gov\/Air-Climate\/Climate-Commitment-Act\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Climate Commitment Act<\/strong><\/a> of 2021 \u2013 which went into effect at the beginning of 2023 \u2013 emitters are required to obtain \u201cemissions allowances\u201d equal to their covered <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">greenhouse gas emissions<\/a> at quarterly auctions hosted by the state Department of Ecology. One carbon credit permits the emission of one ton of carbon dioxide or the equivalent of other greenhouse gases. Carbon credits are also known as carbon offsets.<\/p>\n<p>In 2023, settlement prices for a carbon credit ranged from a low of $48.50 to a high of $63.03.<\/p>\n<p>Some critics claimed the carbon auctions increased the cost of a gallon of gas by up to 50 cents last year.<\/p>\n<p>In 2024, the <a href=\"https:\/\/apps.ecology.wa.gov\/publications\/documents\/2414025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>first-quarter auction<\/strong><\/a> price was $25.76 per carbon credit allowance, which raised approximately $135 million in state proceeds. The <a href=\"https:\/\/apps.ecology.wa.gov\/publications\/documents\/2414027.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>second-quarter auction<\/strong><\/a> price was $29.92 per allowance, raising roughly $157 million in state proceeds.<\/p>\n<p>The Center Square reached out to the state Department of Ecology for comment on this year\u2019s price drop and I-2117.<\/p>\n<p>\u201cWe do not have insight into participants\u2019 bidding strategies, and\u00a0we do not speculate,\u201d said Caroline Halter, communications manager with the Department of Ecology\u2019s Climate Reduction Program, in an email. \u201cWhat we are seeing is that businesses continue to actively work to meet their compliance obligations under the Climate Commitment Act.\u201d<\/p>\n<p>She hinted that bidders are becoming more savvy and that this is part of the market stabilization process.<\/p>\n<p>\u201cGenerally, allowance\u00a0prices\u00a0fluctuate as a result of market participation and demand,\u201d Halter explained. \u201cAnd in any market,\u00a0prices\u00a0respond to uncertainty.\u00a0Price\u00a0fluctuations are also especially common in new markets.\u201d<\/p>\n<p>The Department of Ecology is looking forward, she noted.<\/p>\n<p>\u201cOur focus is and will continue to be ensuring that each auction is conducted fairly and securely according to Washington\u2019s regulations,\u201d Halter said. \u201cWe\u2019re also continuing to pursue a <a href=\"https:\/\/www.thecentersquare.com\/washington\/article_d27cba60-ee11-11ee-9452-c7260579d5db.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>linkage<\/strong><\/a> agreement with the California-Qu\u00e9bec market to improve\u00a0price\u00a0stability and help ensure the long-term success of the program.\u201d<\/p>\n<p>An October 2023 <a href=\"https:\/\/apps.ecology.wa.gov\/publications\/documents\/2314005.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>report<\/strong><\/a> by the Department of Ecology found that a larger, linked market would likely result in more predictability in allowance prices and incentivize businesses to increase investments to curb their greenhouse gas emissions.<\/p>\n<p>Josiah Neeley, who advises the energy team at the R Street Institute think tank, said he thought \u201cthe lower prices are due to the upcoming referendum that would repeal the CCA.\u201d<\/p>\n<p>He said bidders are less inclined to spend money on a program that could be gone by the end of the year.<\/p>\n<p>\u201cBecause the allowances for this year\u2019s emissions are not due until next fall, a lot of companies did not bid [at] the last two auctions on the theory that if the referendum passes, any money spent on allowances would be a waste,\u201d Neeley emailed The Center Square.<\/p>\n<p>Some purchases, he said, could have been motivated by the possibility voters would reject I-2117.<\/p>\n<p>\u201cSome entities have bought allowances at or near the minimum price either as a hedge or as a bet that if the referendum fails the price of the allowances on the secondary market will skyrocket,\u201d Neeley said.<\/p>\n<p>The next carbon auction is <a href=\"https:\/\/apps.ecology.wa.gov\/publications\/documents\/2314013.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>scheduled<\/strong><\/a> for Sept. 4.<\/p>\n<p>The general election is Nov. 5.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This November, Washington state voters will decide on Initiative 2117, which aims to repeal the Climate Commitment Act and ban state agencies from enforcing a cap-and-trade program. This measure could potentially lower gas prices for consumers<\/p>\n","protected":false},"author":1,"featured_media":2283782,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/04\/AP24014160623172-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[32808,32809,7049,12984,32076],"class_list":["post-2283781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-cap-and-trade","tag-carbon-auction","tag-initiative","tag-repeal","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/04\/AP24014160623172-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2283781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2283781"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2283781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2283782"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2283781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2283781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2283781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}