Legislation to require more transparency from big oil companies has survived this week’s legislative cutoff and is moving forward in Olympia.
It’s one of Gov. Jay Inslee’s priority climate initiatives after his critics attributed last year’s high gas prices to the state’s landmark cap and trade law, the Climate Commitment Act. It’s also one of three bills the nonprofits in the Environmental Priorities Coalition are highlighting this year.
The bill (SB 6052) would create a new Petroleum Market Oversight division within the state Utilities and Transportation Commission. It’s similar to legislation recently passed in California, with required reporting from oil companies on their margins and pricing.
“Our goal is to shed light on the mechanisms influencing fuel prices in Washington State,” said the bill’s prime sponsor, Sen. Joe Nguyen, D-White Center. Nguyen called it a commitment to consumer protection through transparency and fairness.
“Because we all saw and witnessed the unpredictable and oftentimes inexplicable swings in gas prices. And even this past summer, we saw record highs. And now we're seeing fuel prices $1, even more than $2 less than what it was just a few months ago,” Nguyen said.
Supporters of the bill said that at the same time, oil companies enjoyed record profits, and the state already has similar monitoring of the electricity sector. The information gathered will help the state with its transition off of fossil fuels.
“We've got only 26 years to achieve the state's 2050 limit on climate pollution -- that's a 95% cut in pollution levels from 1990,” said Becky Kelly, Inslee’s senior climate advisor, during the bill’s first hearing in the state Environment, Energy & Technology committee.
“As we transition to clean electricity and other clean energy to power our vehicles, the supply and affordability of petroleum based fuels is going to be critical to protect consumers and assure ensure an orderly transition,” she said, noting that there is “very little insight into petroleum markets supply and the factors that influence the price of the pump.”
Opponents voiced concerns about costs for the new watchdog entity and cybersecurity for sensitive private data.
Greg Hanon, a lobbyist representing the Western States Petroleum Association, told the committee the bill would go much further than transparency. He said it would create an entity that has broad investigative powers.
“Powers that already exist at the Attorney General's Office,” he said. “And please note, the AG is currently investigating the industry.”
Steve Snider, the owner of Sumner-based Snider Energy, which distributes transportation fuels to gas stations statewide, said he has seen all his costs mounting as refiners pass along fees from the state’s Climate Commitment Act and its low carbon fuel standard, forcing him to raise prices.
“For fuel distributors, our fuel costs and selling prices are already quite transparent,” he said. “It would seem unnecessary to further burden the distributor with costly reporting work requirements when that information is already publicly available.”
But the bill passed out of committee Tuesday, so it has cleared this week's legislative cutoff deadline and advances in the legislature.
Produced with assistance from the Public Media Journalists Association Editor Corps funded by the Corporation for Public Broadcasting, a private corporation funded by the American people.
Updated: February 1, 2024 at 1:10 PM PST - Changed the main image and updated for style.
