OLYMPIA — The Washington State Senate and House of Representatives approved proposed supplementary operating budgets last week, both of which include $30 million in reimbursements for farmers who've paid surcharges in gas fuel.
Jon DeVaney, president of the Washington State Tree Fruit Association, said when the state's Climate Commitment Act began in 2023 it required large emitters of carbon in the state to purchase emission credits, which are meant to decline over time to bring down the number of emissions in the state.
The law also exempted taxes on fossil fuels used in agriculture, like diesel for tractors and product transportation on highways. However, there was no system in place for farmers to claim the exemption when they bought fuel, DeVaney said.
DeVaney said on average, farmers paid a surcharge of 45 cents per gallon of fuel. Last month, DeVaney arranged a series of meetings with farmers and state legislators at the capitol to discuss issues impacting the agriculture industry, including the gas fuel surcharge.
April Clayton and her husband, Mike Clayton, owners of Red Apple Orchards in Orondo, decided to shut down the business this year due to rising costs of operations and expenses, including the fuel surcharge.
DeVaney said the estimated cost to fully reimburse the state's agriculture industry is around $150 million.
"The amount of $30 million is substantial, but it is far short of what, by most estimates, growers and agricultural transporters have been spending on these added fuel costs since January 2023," DeVaney said.
DeVaney also said he values both chambers of the Legislature recognizing the issue.
"Although this doesn't fully fix the problem, it is an important recognition of a serious issue for growers and we appreciate the legislature trying to address it," DeVaney said.
State Sen. Brad Hawkins (R-12) wrote in an email that $30 million may not be enough, but it is a "great first start to assist our farming community."
"Washington farmers have been struggling as a result of the state's Climate Commitment Act and various regulatory challenges," Hawkins wrote. "Agricultural fuel exemptions were purportedly provided under the enacted climate law, but those assurances ended up being nothing but empty promises. It has been very frustrating to hear about orchardists struggling with their costs when they are simply trying to make a living and provide us all with healthy food to eat."
Hawkins wrote the two chambers will approve the final supplementary operating budget on March 7.
Washington Rep. Keith Goehner (R-12) said also the reimbursement is a good start, but money from farmers should have not been collected in the first place.
"The intent of the CCA was to not impact ag fuel users by collecting the extra carbon fee, but the way it is now, the responsibility is resting with the farm fuel users to pursue a refund," Goehner wrote in an email.
The Legislature could pass a measure to repeal the Climate Commitment Act, on which Washington voters could decide in November.
No current provisions exist to reimburse the farmers if the Climate Commitment Act is repealed, Goehner wrote.
