Washington State Imitates California

Congratulations, of the dubious sort, to Washington state. The folks in Olympia have dethroned California to claim the distinction of the country’s highest gasoline prices. Credit goes to their cap-and-trade program and “clean fuel standard,” both of which took effect this year. California pioneered these policies more than a decade ago, and Washington wants to catch up.

Both programs require fuel suppliers to reduce CO2 emissions or buy credits from other more “sustainable” businesses such as owners of electric-vehicle charging stations. Refiners can also buy cap-and-trade credits at state auctions with the proceeds funding green subsidies. These policies add about 40 to 50 cents to the price of each gallon of gas in California.

That isn’t enough for the climate lobby, and Washington state regulators have heeded green complaints and made it even tougher for fuel suppliers by raising the costs of compliance. Washington Policy Center’s Todd Myers estimates that cap-and-trade adds 45 cents a gallon to price of gas—about twice as much as California’s program.