by Brandon Houskeeper
Policy Analyst

The Washington legislature is considering a tax increase intended to support the states effort to protect and restore one of the Washingtons most notable natural resources, the Puget Sound and other state waterways.

The state would collect new revenues by increasing the tax rate on hazardous substances imported into Washington. This would increase gas prices by four to six cents per gallon. While the tax is being sold as part of Puget Sound cleanup, lawmakers in Olympia plan to spend the collected revenue to pay for other government services not related to environmental health. The legislature did something similar last year, when they diverted more than $100 million away from Puget Sound priorities.

Hazardous substances covered by the tax increase include petroleum products, pesticides, and other everyday household items. Many of these products contain chemicals that have been identified as pollutants found in stormwater runoff, that eventually enter the waters of the Puget Sound. Proponents of the tax increase claim that it would raise as much as $150 million annually to support water quality enhancement activities throughout the state.

The proposed tax increase would be added to the hundreds of millions of dollars already collected and spent by government officials on Puget Sound cleanup. However, the need for additional funding is based on a false accounting of current funding and misleading science that has been recalculated since adoption of the Puget Sound Partnerships Action Agenda.

Before policymakers increase taxes on consumers, they should understand how current resources are being spent, as well as the latest science being used by proponents to support their claims for additional funding.

Water Quality Funding In the 2009-11 biennium, the state legislature authorized approximately $400 million to a variety of activities that would protect and restore water quality. According to the Puget Sound Partnership, the state allocated $260 million from the capital budget, $116 million from the operating budget and approximately $23 million from the transportation budget.

The various actions funded in the budget are part of the states Action Agenda, which was put together by the Puget Sound Partnership as a roadmap to healthier waters by prioritizing cleanup and improvement projects. Federal agencies contributed approximately $132 million for Agenda projects, primarily through federal stimulus funding.2 Combined, the state and federal government will spend more than $532 million during the current biemmium.

These totals do not include for expenditures by local governments and private citizens either through voluntary projects or to comply with regulations. Local governments around the state collect and spend hundreds of millions every year to prevent flooding, improve water quality and enhance fish habitat. This action is regulated by state law requiring many local governments to obtain a permit to deal with stormwater.

Since 1995, the largest urban areas of the state, like Seattle and Tacoma, have been required to comply with modern stormwater discharge standards. In 2007 the state adopted more stringent standards requiring all urban areas to comply as well. According to the Association of Washington Cities (AWC), more than 98 cities and 12 counties now comply, or are working toward compliance with the 2007 stormwater discharge standards. In order to meet therequirements and costs of the permit, local governments collect a utility tax from their citizens. In addition to taxes collected by governments, private citizens are required to comply with strict stormwater standards when developing land for various purposes.

The stormwater standards apply to any construction activity that disturbs one acre or more that may result in a discharge of stormwater, such as storm drains, ditches, wetlands, or any other water of the state. Compliance with such rules adds significant costs, in the forms of fees and taxes, to developers and increases the cost of living in Washington.

The stringent stormwater standards that apply to new developments require developers to provide systems that clean stormwater, removing pollutants before they leave the site and discharge into the waters of the state. This means that the taxes collected by local governments and money spent by the state can be focused on inefficiencies in existing stormwater infrastructure.  READ MORE...