MYNORTHWEST NEWS

Washington’s proposed gas export tax is ‘unacceptable,’ says Oregon governor

Feb 18, 2022, 8:27 AM | Updated: Feb 21, 2022, 6:35 am

Gas export tax...

(Getty Images)

(Getty Images)

Among the many measures laid out by Washington Democrats in a proposed $16 billion transportation package is a tax on refined fuel exported to states like Oregon, Idaho, and Alaska. But as the package has moved along in the Legislature, the states that would be subject to the levy are speaking out against it.

Multi-billion dollar transportation package would strike down repeal of fuel export tax

Washington state makes up 3.3% of the United States’ capacity for refined petroleum exports, according to 2019 data. In cities like Seattle, drivers often struggle with gas prices above $4 a gallon, in part due to a state-level $0.49 a gallon gas tax. That said, fuel exported outside of the state is exempt by law from that levy. The proposed transportation package from Democrats would repeal that exemption, passing the costs on to neighboring states that depend on fuel refined along the Puget Sound.

According to the U.S. Energy Information Administration, over 90% of Oregon’s fuel comes from Washington, making it the state that would likely be hit the hardest by a potential export tax. That had Oregon Governor Kate Brown speaking out against the proposal on Thursday following a conversation with Washington Gov. Jay Inslee.

“I spoke with (Gov. Jay Inslee) today and made very clear that Washington taking unilateral action to increase gas prices for Oregon families and businesses is unacceptable,” she said on Twitter. “Washington leaders should know their actions will impact Oregonians’ lives. Continued collaboration between our states will always lead to better outcomes for both Washington and Oregon.”

Others within Oregon’s state leadership expressed the possibility of taking action against Washington should the fuel tax be implemented.

Washington Democrats unveil expansive $16 billion transportation package

“I suppose, if enacted, Oregon will look at ways to retaliate,” Oregon state Sen. Lee Beyer — who chairs the state’s transportation committee — told Oregon Public Broadcasting (OPB).

Legislative staff in Washington estimate that the tax would add roughly $2 billion to the state’s Motor Vehicle Fund over a 16-year period. And as proponents like state Sen. Rebecca Saldana have noted, nearly half the oil refined in the state “goes out without any benefit to our local transportation system.”

Others have pointed out that Washington has been assuming the environmental risks and impacts brought on by refining oil without reaping any of the rewards.

“In terms of fairness, I think it is only appropriate since we produce the fuels for their use that they support our climate activities and our overall activities in the package,” Washington state Rep. Jake Fey said in a statement to OPB.

MyNorthwest reporter Dalton Day contributed to this story.

MyNorthwest News

oak harbor...

Lexi Herda, KIRO 7 News

Oak Harbor High School student trapped under car after being hit in marked crosswalk

An Oak Harbor High School student was rushed to the hospital after they were hit by a car and became trapped underneath the vehicle.

7 hours ago

3 - Tacoma Narrows Bridge...

KIRO 7 News Staff

Expect long PM commutes until further notice on the Tacoma Narrows Bridge

Drivers who use the Tacoma Narrows Bridge (SR 16) to Gig Harbor should expect longer nighttime commutes due to construction work.

7 hours ago

online portal...

James Lynch

King County launches online portal to give crime victims easier access to case updates

Many crime victims in King County will be able to check key information about their cases online through a new secure portal announced by King County Prosecuting Attorney Leesa Manion.

8 hours ago

Garth Brooks adds 4th show to Seattle stop during "Blame It All On My Roots" tour...

Regan Gallo-Fenz

Garth Brooks adds 4th show in Seattle

Country-music artist, Garth Brooks, adds a fourth show to his Seattle itinerary at Climate Pledge Arena in November.

8 hours ago

football player killed...

KIRO Newsradio staff

Driver held on $200,000 bail after car strikes, kills Federal Way football player

A Federal Way High School football player died in a crash Friday night.

9 hours ago

test drive...

Julie Berg, KIRO 7 News

82-year-old man assaulted and car stolen during Whatcom County test drive

An 82-year-old man was violently assaulted and had his vehicle stolen during a test drive Thursday, on Aldrich Road in Whatcom County.

9 hours ago

Washington’s proposed gas export tax is ‘unacceptable,’ says Oregon governor