Campaign News


The Association of Washington Business (AWB) is missing an opportunity to help move Washington State toward a more prosperous and sustainable future. Initiative 732 is a policy that is both pro-environment and pro-business. It will help Washington businesses in three important ways

  • Business managers currently face a great deal of uncertainty about how the transition to a lower-carbon economy will impact their operations. Adopting I-732 would reduce that uncertainty by setting a predictable price on carbon pollution and satisfying Washington’s obligations under the federal Clean Power Plan.


The measure does not impose onerous new regulations, nor are there any compliance requirements for businesses that do not produce or distribute fossil energy. Further, the policy was devised specifically to protect Washington business and keep jobs in the state by offsetting carbon taxes with reductions in the state sales tax as well as the Business & Occupation tax on manufacturers.

  • The measure will actually create jobs and stimulate economic activity. Regional Economic Models, Inc. (REMI) analyzed the impacts of a $30/ton carbon tax coupled with I-732’s specific tax reduction. They found that by 2020 Washington would see a net increase of over 15,000 jobs, and an increase in our annual GDP of over $500 million. The state Office of Financial Management also projects that I-732 will increase retail sales and other business activity.
  • I-732 will help mitigate the impacts of climate change. Washington businesses and residents are already paying the cost of increased heat waves, droughts, wildfires, flooding, insect infestations and health problems — as well as reduced food production, smaller salmon populations, fewer shellfish, and lost recreation. The state’s own analysis estimates these climate impacts will cost billions of dollars annually by 2020. Every one of those risks threaten Washington businesses — some of them in a major way.

I-732 is an important first step to reducing pollution, making our tax code more fair, protecting low- and middle-income families, and enabling our state to prosper in a low-carbon future. By putting a clear price on carbon, I-732 will reduce harmful emissions, accelerate the transition to clean energy, and support economic growth. This approach is clear, transparent and proven to work.

We have a moral obligation to protect our children and future generations, leaving them a world that’s cleaner, healthier and safer. With I-732, we have an opportunity to pass the most effective climate policy anywhere in the country. Please visit to learn more about I-732.

About Initiative 732

I-732 represents the most effective climate policy and the most progressive tax shift in decades in Washington and is designed to move the state toward two goals – cleaner energy and fairer taxes – with the following policy objectives:

  • Tax pollution, not people. I-732 will add a $25 per ton tax to polluting fossil fuels
  • Pay less at the cash register. I-732 reduces the state sales tax by one percentage point, putting hundreds of dollars a year back into the pockets of each household in Washington
  • Support working families. The policy funds the Working Families Tax Rebate, providing up to $1,500 a year for approximately 400,000 low-income households
  • Promote innovation and economic growth. I-732 supports business growth and job creation by effectively eliminating the Business and Occupation Tax on manufacturing

About Carbon Washington

Carbon Washington is a bipartisan grassroots group of scientists, economists, former elected officials, business owners and concerned citizens focused on seeking a solution to climate change that works for businesses and households around the state. The group developed Initiative 732 as a revenue-neutral approach to tax carbon pollution while encouraging economic growth for families and businesses in Washington. To learn more about I-732, view endorsements from around the state, and get involved, visit and follow on twitter @carbonwa.

Media Contact

Samara Villasenor

[email protected]