Washington state is funneling cash into a new rebate initiative granting energy credits to low-income households, but critics of the climate act that made it all possible are accusing lawmakers of bribery.
Energy Bill Credit
Washington will provide $200 energy credits to help pay the energy bills of low-income households across the state, according to an announcement by Gov. Jay Inslee on Monday.
For 675,000 Households
The new program will provide this one-time credit to approximately 675,000 low- and moderate-income households from a $150 million fund.
Distributed by the Department of Commerce
These credits will be distributed by the state’s Department of Commerce and will apply to all electrical utilities that provide energy for residential customers.
Issued by September
Utility companies across the state will receive the credits directly, and apply them to all customer accounts that are eligible under the program. Credits will be issued by September 15, 2024.
Check Eligibility Online
Some customers will have to check through official avenues if they are eligible for the credit, including the clean energy credit program’s website.
Assistance Programs
Other customers may qualify for an automatic credit, including those who are enrolled in ratepayer assistance programs, such as programs for low-income households, disabled individuals, and senior citizens. Those involved in separate assistance programs may also receive automatic credit.
Distribution Period
The first round of credits will go toward households living below 80% of the median income in their area, and credits will be given out until the fund is empty. It could affect people who earn as much as 150% of the median income, depending on how long the fund lasts.
Committed to Cost-Burdened Families
“We are committed to ensuring that the benefits of the state’s clean energy transition reach everyone, especially those most burdened by energy costs,” Inslee said at an announcement in Seattle on Monday.
Climate Commitment Act
The funding has been provided for the initiative by the Washington Climate Commitment Act (CCA), which was signed into state law by Inslee back in 2021.
Reducing Greenhouse Gas Pollution
The CCA is responsible for “a market-based cap-and-invest program to require the state’s largest polluters to reduce greenhouse gas pollution,” according to the Washington State Government’s official website.
Generating $2 Billion in Revenue
So far the act has generated over $2 billion in revenue for corporations that produce the largest carbon emissions in the state. This funding is funneled back into programs across the state, with a focus on boosting the climate tech sector and renewable energy initiatives.
Funding Areas
It also includes funding for community infrastructure, reducing energy costs and air pollution, and reducing smog from transportation, among many more efforts.
An Immediate Benefit from the CCA
“The Climate Commitment Act is helping thousands of low-income families and communities reduce their home energy costs through things like weatherization, heat pumps, and solar installations,” said Inslee. “While we continue to make those tools available for more people, this credit offers an immediate benefit.”
Accusations of Bribery
However, some critics of the CCA have suggested that this week’s energy credit announcement is being used as a method to “bribe” Washington residents to gain approval for the CCA, which was a highly contested bill when it was introduced in 2011 and could be axed entirely later this year.
Initiative 2117 Ballot
The CCA will be put up for public consideration in November, under the Initiative 2117 ballot measure, which was originally put forward by the political committee Let’s Go Washington. If passed it will eliminate the act for good.
Let’s Go Washington
Brian Heywood, founder of Let’s Go Washington, voiced these bribery concerns on Monday. He has called the CCA the “most regressive tax in state history.”
Contributing to High Prices
Others have pointed to the CCA carbon auction program as contributing to rising energy prices, an outcome that critics and even some economists feared before the act was passed into law.
“Most Regressive Tax in State History”
“Inslee has created a program where taxes take thousands out of voter’s paychecks, then a couple hundred dollars are offered back to them to try to make up for it,” said Heywood. “Government greed is at an all-time high and we’ve had enough of the most regressive tax in state history.”
Recent Polling
A recent poll shared by the Seattle Times suggests that many Washington residents may side with Let’s Go Washington. Of 708 respondents, 48% said they would vote yes on the I-2117 ballot, and 18% were undecided.
No Effect on Energy Credits
Fortunately, the energy credits will be distributed by September, so the outcome of the ballot vote in November will not affect the rebate program
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