Oregon government letter tells Washington to scrap the export fuel tax

(The Center Square) – Oregon has sent another warning to Washington over the proposed export fuel tax.

“Do not pit Oregon against Washington,” concluded a Friday letter cosigned by Oregon Gov. Kate Brown and the top leaders of both Oregon state House and Senate parties. “Remove the export fuel tax from your transportation package.”

The proposed 6-cents per gallon export fuel tax is part of a $16 billion transportation package currently winding its way through the Washington Legislature.

The funding part of that package has passed in the state Senate. The House Transportation Committee voted to keep the tax, delay its implementation, and issue a go-pass recommendation to the entire House.

Washington has several fuel refineries, but neighboring Oregon and Idaho do not. Alaska has only one. That means much of the refined fuel used in those states comes from Washington.

Many of Washington’s politicians want to tax that, and Gov. Jay Inslee so far has not objected.

“The governor continues to express his strong support of what state legislators have proposed, which provides the most climate-friendly investments in state history,” Mike Faulk, deputy communications officer for Inslee’s office, told The Center Square Tuesday. “Funding sources are always a point of debate, and this plan is no different. The governor hopes legislators deliver this to his desk, and he plans to sign it.”

The Idaho state House passed a resolution asking the Washington Legislature not to go through with this, which was read in part on Tuesday when the House committee was considering the legislation.

On the same day, a member of the Alaska legislature introduced retaliatory legislation, which would tax fish shipped to Washington and increase moorage costs for Washington boats in Alaska harbors.

The letter from Oregon’s political leaders warned that such a tax would be “punitive and destabilizing,” and brought up the Russian invasion of Ukraine as well.

“Russia’s invasion of Ukraine could cause the price of gas to skyrocket,” the letter says. “The price of US oil is already on the rise. Increasing the fuel tax at this vulnerable moment in time will ultimately punish middle and working class Oregonians.”

The Oregon government pledged not to take that lying down.

“If this export tax moves forward, not only will our states’ relations be strained, but we will both be caught up in lengthy and costly legal battles,” the letter warns. “For you in Washington this means stalled progress on the exact projects being funded by this bill – including likely missing the huge opportunity to apply for the Mega Projects grant in the Infrastructure Investment and Jobs Act (IIJA) for the Interstate Bridge.”

The Interstate Bridge is part of Interstate 5 that extends over the Columbia River and ties the two states together. The two states have been trying to find the funds to replace it since 2005.

Disclaimer: This content is distributed by The Center Square