Amendment Would Eliminate Contentious Export Fuel Tax from Democratic Transportation Package in Washington Legislature

The State House Transportation Chair is proposing to remove an export fuel tax from the $16-billion Democratic transportation package.

An amendment to scrap the tax by Rep. Jale Fey, D-Tacoma, comes after lawmakers from Alaska, Oregon and Idaho issued a flurry of pleas and threats of retaliation if it goes into effect.

Washington has the fifth-largest crude oil refining capacity in the country, and the three neighboring states are heavily dependent on the state's exports.

The transportation package has so far passed a tight committee level vote, with the tax intact that would add a 6-cent fee on fuel exported from Washington refineries to other states.

The tax in the Move Ahead Washington Transportation plan from Democrats was expected to generate $2 billion in revenue over the package’s 16-year lifespan. 

Twelfth District Rep. Keith Goehner, R-Dryden, voted against the the package in committee

Fey says his amendment would remove the export tax and replace it with an annual transfer from the Public Works Assistance Account. He said no projects will be eliminated from the package. 

 “People told us loud and clear that this was not going to work,” said Fey. “From the beginning, this package has been about listening to people’s needs and making historic investments in Washington for years to come. We’ve come up with a reasonable, workable solution that takes the pressure off working people and contributes to a stronger partnership with our neighbors in other states.” 

The House expects to debate the revenue portion of the package known as HB 2119 this week.