BILL REQ. #:  S-4358.1 

Read first time 02/06/08.   Referred to Committee on Transportation.

     AN ACT Relating to a passenger vehicle greenhouse gas excise tax; adding a new section to chapter 82.44 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature acknowledges the scientific consensus that global warming from greenhouse gases threatens Washington state's economy and environment. The legislature further recognizes that it is incumbent on the people of Washington state to take measures to reduce the state's contribution to global warming pollution. Emissions from road transportation account for approximately one-third of Washington state's global warming pollution, and the transportation sector is Washington state's largest contributor of greenhouse gas emissions. Encouraging the use of fuel-efficient vehicles and providing transportation alternatives are important strategies for reducing fuel use and associated greenhouse gas emissions.
     The legislature finds that a greenhouse gas tax is an excise tax on sources that contribute to global warming. The legislature finds that the global warming costs associated with automobile emissions are not included in the existing costs of using a vehicle. Additionally, the legislature finds more alternatives to single-occupancy vehicle travel are needed to significantly reduce automobile vehicle miles traveled. The legislature finds that a greenhouse gas tax is an effective way to embed some of the global warming costs of automobile emissions into the cost of using a vehicle, and at the same time provides resources to fund transportation alternatives.
     The legislature finds that an exact measure of a vehicle's greenhouse gas emissions, though preferred, is not administratively feasible at this time. The environmental protection agency fuel economy rating is the best available measure of a vehicle's greenhouse gas emissions given current technology and data collection practices. The legislature finds that there is a sufficient relationship between a vehicle's fuel economy and its greenhouse gas emissions to provide a rational basis for determining the vehicle green house gas emissions tax. The legislature assumes that passenger vehicles travel the national average of twelve thousand miles per year and sets the price of greenhouse gas emissions at twenty dollars per ton of carbon dioxide.
     Therefore, the legislature finds imposing a vehicle greenhouse gas emissions tax is a vital part of the state's strategy to reducing global warming.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.44 RCW to read as follows:
     (1) The department of licensing must annually collect a vehicle excise tax on greenhouse gas emissions in accordance with the schedules contained in subsection (4) of this section. The annual vehicle greenhouse gas emissions excise tax will be collected on all motor vehicles licensed under the passenger use class, as specified in chapter 308-96A WAC.
     (2) The state treasurer must distribute revenues on a monthly basis, less administrative fees not to exceed one percent of fees collected, according to the following formula:
     (a) Twenty-five percent to the Washington state department of transportation; and
     (b) Seventy-five percent to cities and counties based on a pro-rated share of registered passenger vehicles in incorporated and unincorporated areas.
     (3) The proceeds of this tax must be used for the design, construction, and operations of transportation facilities and services that provide alternatives to the use of single-occupant vehicles and for programs that encourage the use of these facilities and services. The allowable uses of these revenues include but are not limited to transit, high-capacity transportation, bicycle and pedestrian facilities, and transportation demand management programs.
     (4) The tax schedule for the vehicle greenhouse gas emissions excise tax is as follows:
     (a) For the purpose of this section, "EPA fuel economy rating" means the estimated, combined (fifty-five percent city and forty-five percent highway) fuel economy rating for vehicles, as reported in the United States environmental protection agency and United States department of energy "fuel economy guide" since the 1978 model year.
     (b) Passenger vehicles that have an established EPA fuel economy rating must be taxed according to the EPA fuel economy rating as follows: