By putting a price on carbon pollution, Initiative 732 creates a strong financial incentive for manufacturers to reduce their emissions. But the measure also gives manufacturers the resources to invest in greater efficiency and clean energy by cutting their existing state tax burden. These incentives will help manufacturers comply with the new state Clean Air Rule.
- The Washington State Department of Ecology recently issued a Clean Air Rule (CAR) limiting greenhouse gas emissions from large pollution sources in the state, such as industrial facilities, landfills, and fossil fuel importers.
- Initiative 732 would work in tandem with this regulatory cap by creating a financial incentive for large polluters to reduce their emissions.
- But unlike the new rule, I732 cuts other taxes in exchange for placing a tax on CO2.
- In particular, manufacturers would have their B&O tax virtually eliminated, which would help maintain their competitiveness with out-of-state producers.
Photo by Rob Lambert via Unsplash.com.