Ag Fuel Exemption Fix Signed By Ferguson

Last week, Washington Governor Bob Ferguson signed legislation to give the agricultural community the farm fuel exemptions they were promised when the Climate Commitment Act was passed a few years ago. 

House Bill 1912, sponsored by Moses Lake Republican Tom Dent, will make it easier for farmers to use the fuel exemption by establishing a public directory to find sellers who offer exempt fuel. 

"This is long overdue. The cap-and-trade program was enacted with the understanding that the agricultural industry would be exempt from the increased costs created by the carbon emissions market. Unfortunately, that is not the case," said Dent. "It was time to step up for our agriculture community. We need them to succeed. They are the ones who are putting food on our table."

Dent co-chaired the agricultural subcommittee on Governor Ferguson's transition team. 

"The subcommittee identified several issues that negatively impacted our farmers and ranchers. While we came up with many recommendations, honoring the exemption was a top priority of the subcommittee and the governor," Dent added. "We worked together, and there was strong, bipartisan support to streamline the fuel exemption process and help keep fuel costs down on farms as well as transporting ag products." 

Dent said the legislation: 

• Requires the Department of Ecology to keep a website directory of retail fuel sellers of agricultural fuel that are exempt from the CCA compliance obligation
• Provides financial incentives for retailers to sell tax-exempt fuel and directs DOE to set up a program to refund cap-and-trade taxes to farmers
• Clarifies that until 2030, the CCA exemption for fuels applies regardless of whether or not the fuel is used to propel a motor vehicle. The exemption also applies to gasoline, diesel, biodiesel and propane
• Extends until 2030 the tax exemption for fuel used for on-road transportation of agricultural products

The bill included an emergency clause, so it takes effect immediately.

Click Here to read HB 1912 in its entirety.

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