After more than a year of broken promises and mounting frustration, Washington state farmers are finally exempt from fuel taxes tied to the Climate Commitment Act (CCA). On Thursday, Governor Bob Ferguson signed Engrossed Second Substitute House Bill 1912 (ESSHB 1912) into law, fulfilling long-delayed exemptions for agricultural producers.
The CCA imposes cap-and-trade fees on fuel to fund green energy initiatives. Although farmers were originally promised relief, a complex and poorly implemented rebate program left many unable to recover the added costs. Since 2023, agricultural producers had been paying CCA-related fuel charges despite their supposed exemption.
The new legislation provides a direct exemption from CCA charges on fuel used for agricultural purposes, including gasoline, diesel, natural gas, and propane. It also extends the exemption until 2029. The bill was signed during a ceremony in Kennewick, a key agricultural hub in eastern Washington.
Rep. Tom Dent, a Republican from Moses Lake and the bill’s lead sponsor, criticized the original rebate formula as confusing and inequitable. “If you bought 1,000 or 3,000 gallons, you got the same rebate,” Dent said. “The formula was so complicated, even I couldn’t figure it out.”
Under the old system, rebates maxed out at $4,500 — a fraction of the actual costs incurred by many farmers. ESSHB 1912 eliminates the guesswork and allows farmers to purchase exempt fuel without navigating red tape.
Ferguson’s signing of the bill signals a shift in approach toward agriculture under his leadership. Dent, who advised Ferguson’s transition team on farming issues, said he was encouraged by the governor’s direct engagement with eastern Washington’s farming community.
The law also instructs the Department of Ecology to create a map of fuel sellers who provide exempt fuel, using voluntary data, to help guide the state’s 32,000 farmers to compliant fuel sources.
While Dent acknowledged the bill isn’t perfect, he expressed satisfaction in finally securing meaningful relief for Washington’s agricultural sector.
