We’re advocating for ports as new carbon-reduction rules are set in Washington

Last session, the legislature passed new laws aimed at reducing carbon use in Washington state. WPPA supported using the revenue from this legislation to fund badly-needed transportation infrastructure projects—a stance recommended by a carbon working group comprised of a broad sub-section of the port community.  Rules about how this new legislation will work are being made within the Department of Ecology right now, and WPPA is advocating for your interests in this process.

There are two carbon laws to watch.  The most complex is a cap-and-trade auction will sell allowances giving owners the right to emit carbon into the air.  The other new carbon law creates a clean fuel standard marketplace where producers of hydrocarbon fuel can purchase credits to lower the amount of carbon emitted overall.  These are “economy-wide” policies that will alter existing market signals.

WPPA is closely watching the cap-and-trade rule making process to find opportunities and to reduce risks to ports.  Funding for transportation and other port investments can be helpful.  At the same time, we are wary of regulations that could harm energy-intensive trade-exposed (EITE) businesses like food processing.  

The second law we’re watching is the clean fuel standard.  Ecology is setting the rules for the clean fuel standard credit market.  Lower carbon-intensity fuels (biofuels, hydropower) earn credits that can be sold to producers of traditional carbon-based fuels.  Some ports see opportunity in this market while others are skeptical.   Ultimately, Ecology’s decisions in these areas have important future impacts on ports, and so WPPA is actively engaged while the rules are being written.

Carbon policy affects port interests.  To ensure you are well represented in Olympia, WPPA is gathering information from a representative sample of ports to understand how our members will take advantage of or mitigate risks from these new laws.  We will share what we learn with you directly on the blog and through our email channels in the coming weeks, and use it to shape WPPA’s legislative agendas as we represent you in Olympia.