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Monday, February 8, 2010

Oil Lobby Descends on Olympia to Oppose Gas Tax

Posted by on Mon, Feb 8, 2010 at 3:08 PM

A view of Puget Sound from Golden Gardens.
  • Nic Launceford in the flickr pool
  • A view of Puget Sound from Golden Gardens.

Big Oil dug its hands into Seattle last year, helping defeat the disposable bag fee with an unprecedented dump of cash—and they’re putting similar pressure on the state capitol right now.

In Olympia, two bills (one in the house and senate) introduced last Friday would raise the tax on oil imported into the state. The update is called the Clean Water Act of 2010, but the original 0.7 percent tax on hazardous materials was passed by voter initiative in 1987 as part of Initiative 97.

If passed, this new measure would triple the current tax—from 0.7 percent to 2 percent—to generate about $225 million a year. The money would be used to clean up toxic runoff that dumps into the Puget Sound poisons marine life, and close budget gaps.

But the oil lobby is out to kill the measure. According to environmental advocates following the legislative session, 41 paid lobbyists are bustling around Olympia in suits and skirts pounding on the doors of legislators to fight against the bill. Forty-one of them. That’s nearly enough for one for each of Washington’s 49 districts. Remind you of a certain $1.4 million plastic-industry-funded campaign for plastic bag love?

As in the Seattle campaign, the oil lobby is hiding behind slick rhetoric that appears to represent the working class and the struggling consumers. But a closer look shows the real backers are—not the little guys—the petroleum and asphalt industry. It's unclear how much they've spent so far, but it can't be cheap considering the profits they say they will lose in a recent Olympian story. They say it would make gas—already expensive in Washington—even more pricey, and cost jobs in oil refineries.

Despite the clear power of the oil industry, which, again, swung the bag-tax vote by buying the election, the environmental lobby still has a chance. The need for state revenue and the huge money stream this tax would bring in, combined with the backing of labor, cities who need the stormwater funding, and environmental groups far and wide should help Democratic sponsors Rep. Timm Ormsby of Spokane and Seattle's Sen. Ed Murray.

The funding for this is supposed to go to stormwater cleanup for local governments, and other environmental efforts, but legislators get a hefty piece of the pie to start with, said Bruce Wishart, lobbyist for People for Puget Sound.

"Distribution of funds is complicated," Wishart wrote in an e-mail. "Initially, about 70 percent goes to state General Fund to address the state deficit crisis"—such as schools and health care—"The remainder goes to local government for stormwater programs and the state for cleanup of Puget Sound and other clean water programs." He continues, "Over several years, the percentage to the General Fund tapers off to nothing and the clean water accounts (particularly local stormwater accounts) get all the funding."

 

Comments (16) RSS

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Fnarf 1
Making gas cost more has benefits in and of itself. I'd support a gas tax increase even if they were going to collect all the money from it and burn it.
Posted by Fnarf http://www.facebook.com/fnarf on February 8, 2010 at 3:16 PM
Will in Seattle 2
Thank God corporations are people and can give unlimited amount of /b/r/i/b/e/s/campaign donations to elected officials.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on February 8, 2010 at 3:25 PM
Joe Szilagyi 3
I wonder if any state legislator would ever have the balls to put forward some bill that tried to ban out-of-state spending on WA state politics.
Posted by Joe Szilagyi http://www.joeszilagyi.com on February 8, 2010 at 3:31 PM
4
@3 probably unconstitutional
Posted by niriki on February 8, 2010 at 3:45 PM
Will in Seattle 5
@3 - a better option would be to limit spending on campaigns and ads to a specific amount per WA citizen signed up to support it. Say $50 per citizen.

This would still allow Comcast to spend $50 per citizen working for them, but would limit the influence of corporations with no significant WA investment.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on February 8, 2010 at 3:54 PM
6
Those bills don't raise a tax on oil imported into the state. The tax is on products, including refined oil products. You got the mechanism wrong.
Posted by read the bill on February 8, 2010 at 3:56 PM
7
let's tax campaign contributions at 90% or more.

Also outlaw petrochemicals before global warming becomes unstoppable. 100+ million displaced from their homes with 100 years is gonna screw over the world's economy
Posted by asdffffff on February 8, 2010 at 4:33 PM
8
The refineries will pass the tax through to retail customers (it isn't a high margin business), and they should. Most of the nasty crap that the stormwater projects deal with is caused by auto emissions (exhaust, oil drips, etc.), and it's only fair that car owners pick up the tab for the cleanup.
Posted by Toe Tag on February 8, 2010 at 4:49 PM
Sargon Bighorn 9
They did NOT BUY THE ELECTION, that's crap and you know it. Have you noticed that almost nobody uses re-usable bags? They never did they never will. Most people still walk out with the goods in plastic or paper bags. Big Oil won because they built on the lies people tell themselves, not because they bought anything. Don't believe me? Stand at the doors of any grocery store and on one hand you can count the number of people that carry their goods out in re-usable bags. So Big Oil knows what's it's doing, the public, not so much.
Posted by Sargon Bighorn on February 8, 2010 at 5:21 PM
10
Excellent article.

Here's another great source of revenue: remove the $5 million in tax breaks that WA gives to the TransAlta Coal Plant (our state's largest polluter) every year. The coal plant got the tax break by promising that it would be used to protect local jobs, but then fired the workers five years later. Now House Minority Richard DeBolt is trying to keep this tax loophole going in order to protect his own job (in addition to being WA's highest ranking Republican Representative, Richard DeBolt is also a paid lobbyist for the TransAlta Coal Company) . Instead of throwing away money to this international coal company, let's invest back into the local economy by building clean energy to get us off coal power and create good jobs!

More info: www.coalfreewashington.org

Posted by Quixotic Coal Fighter on February 8, 2010 at 5:47 PM
11
Please stop posting these ugly "hdr" photos. Thanks!
Posted by agdtinman on February 8, 2010 at 7:52 PM
balderdash 12
@9

Almost everybody I know uses reusable totes.

I mean, I know I'm a privileged ivory-tower-academic elitist yuppie fake-American cityboy, but there are a lot of us privileged ivory-tower-academic elitist yuppie fake-American cityboys in Seattle, you know. Enough that "almost nobody" might be a little inaccurate. Back in Texas where I'm from, you'd be right - you get strange looks from the clerks at the store if you bring bags. Up here, though? Folks just needed the little kick in the pants that fee would have provided.

Anyway, this is hells of different, and I'm with Fnarf - even if it DIDN'T raise much-needed revenue, I'd support a gas tax.
Posted by balderdash http://introverse.blogspot.com on February 8, 2010 at 9:12 PM
13
Do you guys actually "trust" the legislators to actually move this money from the general fund over time to where its supposed to go? This is the biggest money grab of all time. They aren't going to give it up once its allocated to all these projects in the general fund. They will come back and ask for more taxes because magically there won't be any money left for what its supposed to fund when the time comes to spend it on actual clean up. And than they will come to the taxpayers and say if we don't raise this tax x amount of percent than x programs will be cut.

I could support this IF and only IF they put teeth in the measure and locked it away in a fund to where it could only be used for stormwater cleanup, projects, etc.
Posted by Brian In Seattle on February 8, 2010 at 9:25 PM
Grist 14
Could not even read the rest of the post because that photo is so color-corrected it hurts my brain. kthxbye.
Posted by Grist on February 8, 2010 at 10:03 PM
15
Yep, I'm willing to bet there are a lot of pretty excellent, original film-based photographs in your flickr collection. images like the ones you guys keep posting might look cool the first time but really they indicate a lack of scope and creativity--in the instances of you guys selecting the image, not the person who took/manipulated it.
Posted by bye!bye! on February 8, 2010 at 11:12 PM
doesurmindglow 16
@9:

They'll use them more as they begin to feel the pain. We are all going to pay for the costs of oil's huge externalities, whether we like it or not.

But as these costs continue to mount, I don't know whether we'll realize we incurred them so that we could use a non-reusable bag. The tax was an attempt to offset the future costs, an investment now that we would benefit from later. Oh well...
Posted by doesurmindglow on February 9, 2010 at 1:53 AM

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