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Several factors caused gas prices to spike, including the Climate Commitment Act (CCA) and the start of summer driving season. When averaged over a year, the CCA added 13 — not 50 — cents per gallon. However, then-Gov. Jay Inslee had promised the increase would be “pennies”.
The 2021 Climate Commitment Act requires fuel suppliers and large emitters to buy carbon offsets to reduce carbon emissions. Those emitters can pass those costs to consumers, which increases fuel costs. The CCA’s first cost-related auction was late February 2023.
In July 2023, per-gallon prices increased by an average of 50 cents. Overall gas prices increased in both Washington and Oregon based on similar fuel sources and driving trends. Oregon does not have a CCA.
To isolate the true cost of the CCA, analysts compared Washington and Oregon increases. The price differential was 13 cents based on a full year of data, which excludes typical summer increase.
This fact brief is responsive to conversations such as this one.
Sources
- U.S. Energy Information Administration West Coast Transportation Fuels Market
- Clean and Prosperous Do Climate Commitment Act allowance prices get passed through to the pump? Reliable comparison: Washington vs. Oregon
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