Rebates on the way for farmers who paid fuel surcharges under WA climate law
Farmers who believe they paid unfair fuel surcharges under the state’s cap-and-trade program can soon apply for a rebate from the state.
Next week, Washington’s Department of Licensing will launch an online application for agricultural fuel users who may have been overcharged. People can apply starting Monday. Fuel used in the farm industry is supposed to be exempt from the climate program.
The Legislature set aside $30 million this year for farm fuel users and haulers of agricultural goods to receive rebates. The funding comes from revenue the state received in its quarterly pollution allowance auctions under the Climate Commitment Act.
The law requires industrial polluters to hit certain emissions thresholds every year and to purchase allowances from the state if they cannot. Auctions began last year.
Since the program launched, farmers, truckers and others eligible for exemptions say they have not received them, prompting frustrations, a series of roundtables with industry groups and the state and a now-dismissed lawsuit.
When the Legislature approved the $30 million for rebates in March, farmers said that amount would not be enough to cover all those who were overcharged, but that it was a start.
The department says the application to receive the rebates will go live by 9 a.m. on Monday. For more information on who qualifies and what information will be required on the application, visit the department’s frequently asked questions page.
According to language in the state budget, the department must base rebate amounts on the annual number of gallons of agricultural fuel consumed. To prove this, a farm fuel user or transporter will have to submit a signed, notarized attestation.
According to the department, they must also provide a Department of Ecology fuel exemption certificate, a Department of Revenue sales tax exemption certificate, or a contract proving they transported eligible agricultural products.
The amount someone gets ranges from $600 for less than 1,000 gallons of fuel to $4,500 for more than 10,000 gallons.
The rebate will only be based on fuel purchased and used in 2023.
More information on how to apply will be available at dol.wa.gov/agriculture-support-program once the department launches the application.
Lawmakers gave the Department of Licensing until Sept. 1 to start getting the funds out. If an initiative threatening to repeal the Climate Commitment Act is approved by voters in November, the money will no longer be available for rebates.
Farming and trucking groups said earlier this year that they don’t anticipate that getting out the funds in two months will be an issue with so many people wanting them.