Notes from talk with Sen. Eric Oemig

Catherine and I talked with state Senator Eric Oemig last week.

In brief, he's keen on carbon taxes and wants us to suggest some questions that legislative policy folks could look into. We should aim to have this finalized by the end of our next meeting on Sept 2.

Here are some draft questions---please email me or post comments on this blog post if you have additions &etc----and below that are detailed notes from our conversation with Sen. Oemig.

* Can the revenue be used to provide dollar-for-dollar property taxes rebates as in Tim Eyman's I-892? Or do tax reductions and revenue generation have to be treated separately for some reason? Also, is it possible to rebate local property taxes, or just state property taxes?

* What about energy efficiency programs (tied to or separate from property tax rebates) and what about B&O investment tax credits?

* What ideas are there for offsetting impacts on low-income households? Some ideas from Aaron of the Economic Opportunity Institute are (1) additional funding for the Low Income Home Energy Assistance Program (LIHEAP); (2) money for rapid-transit serving low-income neighborhoods; (3) rebates to low- and middle-income workers for the purchase of fuel-efficiency vehicles; "green jobs" programs. To this I would add two previously discussed ideas: (4) paying to reduce bus fares, and (5) direct cash payments to low-income households. A sixth idea, using the revenue to fund the Working Families Credit, is on ice because proponents of the Working Families Credit are opposed to this.

* Can the revenue go into a cascading pool-type system, where it gets used to rebate tax X, and then if anything is left over it gets used to rebate tax Y, etc?


In length, here are my notes from our talk with Sen. Oemig.

1) He had some doubts about whether the WCI had unstoppable momentum and said that he thought a carbon tax could work with the WCI since each state would get its share of credits---WA could have a carbon tax instead and buy or sell credits to even up emissions with the WCI target. [Note from Yoram: I'm not sure what the point of this would be, but stay tuned...]

2) It doesn't matter how good a carbon tax is, it's like a gas tax and everybody hates the gas tax. $20/ton of CO2 ($0.20 per gallon of gas) is too high, maybe $10/ton but that's pretty high too. How about using the carbon tax money to reduce the gas tax, so that there's no net increase in the gas tax?

3) We need polling data! He's doing a semi-scientific poll of voters in his district and hopefully will share the results with us.

4) Some folks in the legislature are pushing for regulatory alternatives: fuel efficiency standards, closing coal plants, etc.

5) It would be hard to get a carbon tax bill through the legislature, but it might be possible to get a bill through that puts a referendum on the ballot for the state's citizens to vote on. Then the legislators aren't saying "I support a carbon tax" but rather "I want to give my constituents options, so let's put this on the ballot."

6) He might not be the best person to introduce legislation, but he suggested some other folks who would be good.

7) He is willing to talk to some other folks and try to get some staff to work on legislation (!) once we get #8 done and get back to him.

8) To-do: Tighten up our brainstorming and have a list of questions to follow up on, e.g., can you spend money on XYZ? He said to think that the world is your oyster and that everything is allowed until someone tells you it isn't.

9) To-do: Contact other legislators (he gave me a bunch of names) and start to open lines of communication about this.