• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Environmentcarbon

Hedge funder leads drive to overturn Washington carbon pricing law that has raised over $2bn but has seen gas prices rise to 3rd highest in U.S.

By
Hallie Golden
Hallie Golden
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Hallie Golden
Hallie Golden
and
The Associated Press
The Associated Press
Down Arrow Button Icon
July 23, 2024, 6:06 AM ET
Washington Gov. Jay Inslee is defending the biggest climate achievement of his tenure amid a fierce repeal effort led by conservatives.
Washington Gov. Jay Inslee is defending the biggest climate achievement of his tenure amid a fierce repeal effort led by conservatives.Susan Walsh—AP

Standing at a transit center near four new wireless bus charging stations in a small community west of Seattle, Gov. Jay Inslee told transit and city leaders where money to pay for them — more than $1 million — came from.

Recommended Video

“It’s possible only because of the Climate Commitment Act,” Inslee said, citing a program that works to cut pollution while raising money for investments that address climate change. “That was the source. It’s the only way we’re able to do this.”

Inslee made similar remarks as he visited a salmon habitat restoration project and then test-drove a car from an all-electric co-op rideshare company’s fleet, part of a blitz by the three-term Democrat in recent months to defend the biggest climate achievement of his tenure amid a fierce repeal effort led by conservatives. Inslee, who isn’t seeking a fourth term, has appeared at more than a dozen projects funded by the law and on his personal time put his name to a flurry of emails, texts and calls to voters.

Behind the repeal effort is Let’s Go Washington, a group primarily bankrolled by hedge fund executive Brian Heywood that submitted more than 400,000 signatures from Washingtonians to get a vote on the November ballot. They argue that the law has helped push up gas prices that currently are third-highest in the nation.

Repeal would sink Washington’s plans to link up its carbon market with others, and could be a blow to its efforts to help other states launch similar programs. And for Inslee — who put climate front and center during his brief presidential campaign in 2019 — repeal would be an especially gut-wrenching loss.

He talked of a carbon pricing program as soon as he took office, and recommended the Legislature cap emissions in 2014. It wasn’t until 2021, four years after Democrats had won control of both legislative chambers, that the CCA was approved and enthusiastically signed by Inslee.

Washington was the second state to launch such a program, after California, with annual targets that start especially stringent and aim to cut emissions by almost half, compared to 1990 levels, by the year 2030.

In February 2023, the state held its first quarterly emissions allowance auction for businesses that emit at least 25,000 metric tons of carbon dioxide or the equivalent — also known as C02e. Businesses like BP must purchase allowances based on their total emissions, with one allowance equaling one metric ton of C02e. Each year, the allowances available go down.

The auctions have raised more than $2 billion, with the money used for everything from transportation to education. Inslee recently announced that $52 million from the program would go to tribes to respond to climate change.

But from the beginning, the issue of gas prices has rankled some Washingtonians. Inslee promised the program would have a negligible effect on gas prices while making huge investments in key climate programs. But the campaign to overturn it says the CCA has increased costs from 43 to 53 cents per gallon, citing the conservative think tank Washington Policy Center. Gas has gone as high as $5.12 per gallon since the auctions started, though it stood around $4.24 this month, according to GasBuddy.

“For Washington state commuters, those pennies are adding up to hundreds of dollars lost to a program that has not done what it was advertised to do,” Let’s Go Washington said in a statement in March.

Inslee has countered that Washington saw “dramatic swings” in gas prices long before the carbon pricing program, noting that its historic high of $5.54 came several months before the auctions started.

The win-win narrative touted by Inslee is a common one in the climate movement, said Aseem Prakash, professor of political science and founding director of environmental politics center at the University of Washington. But it’s not working because it’s become increasingly clear that there is a cost to climate transition, Prakash said.

“He’s playing defense on the cost … and that’s a losing strategy, because the narrative is now that the conservatives are saying we told you so, they’re going to impose tax on you,” said Prakash.

For some climate advocates, much more is on the line with this vote than a single state policy. Washington is in the process of connecting its carbon market with California and Quebec, which also have emission allowance auctions. This could make the market more stable and could happen as soon as next year, said Becky Kelley, senior policy advisor for climate to Inslee. Washington is also helping other states with efforts to launch similar programs.

“If this initiative passes here, it would definitely create a freeze and slow down states, maybe even the country’s action on addressing the climate crisis,” said David Mendoza, director of policy and government relations at The Nature Conservancy in Washington.

State law prohibits the governor’s office from setting up political or campaign events, so Inslee has been careful to say he would have appeared at projects funded by the climate law with or without the repeal vote. But it’s clear he cares deeply about the outcome, citing his six grandchildren when asked what repeal would mean to his climate legacy.

“I think about my grandchildren in this regard, that’s my legacy. I’m proud of that legacy. And I am committed to giving them a shot,” he said. “And they should have clean air to breathe. They should have salmon in the water. And they should not have to have forest fires in their future all the time. I care about that. That’s how I look at this issue, through the eyes of my grandchildren.”

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter will deliver clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Hallie Golden
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Environment

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Environment

A large oil-exporting hub will be built in the deepwater Gulf of Mexico amid the Iran war—but only because Japan and the White House are paying for it
Energycrude oil
A large oil-exporting hub will be built in the deepwater Gulf of Mexico amid the Iran war—but only because Japan and the White House are paying for it
By Jordan BlumMay 8, 2026
2 days ago
An almond farmer inspects a fruit on a tree.
North AmericaAgriculture
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
2 days ago
bears
EnvironmentAlaska
Judge allows Alaska wildlife agents to resume shooting bears from helicopters to protect recovering caribou herd
By Becky Bohrer and The Associated PressMay 7, 2026
2 days ago
Debris from the White House East Wing demolition was dumped at a nearby public golf course and contains toxic metals, National Park report finds
PoliticsWhite House
Debris from the White House East Wing demolition was dumped at a nearby public golf course and contains toxic metals, National Park report finds
By Sasha RogelbergMay 7, 2026
3 days ago
ben
CommentaryFood and drink
Magnum owns Ben & Jerry’s. Now it’s destroying what made the brand worth buying
By David Bronner, Michael Bronner and Ryan GellertMay 7, 2026
3 days ago
At 75, Ted Turner told Fortune he gave himself 5 more years. He got 12—and spent them warning the world was ending
C-SuiteMedia
At 75, Ted Turner told Fortune he gave himself 5 more years. He got 12—and spent them warning the world was ending
By Ashley LutzMay 6, 2026
3 days ago

Most Popular

Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
Politics
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
By Jason MaMay 9, 2026
6 hours ago
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
North America
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
2 days ago
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
Magazine
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
By Sharon GoldmanMay 6, 2026
4 days ago
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
Future of Work
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
By Jake AngeloMay 9, 2026
10 hours ago
The CEO of Maersk, which ships 14% of everything you buy, said the Iran war is adding $500 million in monthly costs it's trying not to pass down
Energy
The CEO of Maersk, which ships 14% of everything you buy, said the Iran war is adding $500 million in monthly costs it's trying not to pass down
By Sasha RogelbergMay 8, 2026
1 day ago
You're probably safe from the Hantavirus outbreak, but here's what you absolutely must not do, experts say
Politics
You're probably safe from the Hantavirus outbreak, but here's what you absolutely must not do, experts say
By Catherina GioinoMay 8, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.