Farmers and truckers are appealing a lower court ruling in a case that would have required the state to rethink its fuel exemption process under Washington’s cap-and-trade program.
Farm fuel users have pushed the Department of Ecology to find fixes, saying under the Climate Commitment Act they’ve paid unfair surcharges on fuel that is supposed to be exempt.
The Washington Farm Bureau and the Washington Trucking Association took Ecology to court in hopes that a judge would force the state to reopen rulemaking for the exemption process, but a Thurston County judge dismissed that case earlier this month.
Now, they’re asking the state Supreme Court to step in.
“Judge (Chris) Lanese’s decision to dismiss the case without explanation leaves agriculture with no other option but to pursue an appeal,” said Bre Elsey, the Washington Farm Bureau’s director of governmental affairs. “We are committed to fighting for a solution that will relieve our farmers, ranchers, and transporters from these unlawful fees.”
Under the Climate Commitment Act, the agricultural, maritime and aviation sectors are supposed to be exempt from the law’s cap on emissions and any fees fuel companies might pass along to customers to cover the cost of buying pollution allowances. Fuel used for trucking crops and other agricultural goods is supposed to be exempt through 2027.
But once the program launched last year, farmers, fishermen and fuel distributors were quick to say the exemptions program was a mess, citing difficulties with tracking whether diesel fuel was being used for exempt purposes. They also said the process where exempt fuel buyers had to present certificates to fuel sellers was cumbersome and faulty.
In response, the state set up a work group of more than 30 farmers, fuel distributors, climate advocates and others to discuss how to come up with a better system. Ecology then issued new guidance on how to report and document emissions that should be exempt.
After the superior court ruling, the department said it would be responsive to concerns with the exemption process and work with fuel suppliers to track and report exempt fuels accurately.
The Legislature also set aside $30 million to give rebates to farmers who say they’ve paid the surcharges on their fuel. The application to receive that funding opened this week.
Despite these steps, however, the Farm Bureau and the Washington Trucking Association say that without judicial intervention, “the damage to agriculture and consumers will persist,” according to a press release. The release adds that failure to fix the process will result in “financial strain” for those who rely on the exemptions.
There is no specific timeline that the court has to decide if they want to take up a case, and it could take months before it moves forward.
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