Washington State has ceased funding a rebate program designed to assist farmers burdened by fuel surcharges under the state’s Climate Commitment Act. This summer, the state quietly ended a program that had previously allocated millions in rebates, leaving many in the agricultural sector seeking alternative support.
In response to this funding cut, lawmakers enacted new legislation in May 2024. This law aims to streamline the process for farm fuel users and agricultural transporters to access fuel exemptions promised under Washington’s cap-and-trade system. The legislation directs the Department of Ecology to establish an online directory of retailers selling exempt agricultural fuel, which is priced without the additional surcharges mandated by the Climate Commitment Act.
Rep. Tom Dent, a Republican from Moses Lake, emphasized that this new approach will alleviate the financial burden on farmers and haulers. He stated, “This should be an easier way for farmers to not pay a surcharge.” By eliminating the need for farmers to pay surcharges upfront and subsequently apply for rebates, the new system aims to simplify their operations.
The Climate Commitment Act, pivotal to Washington’s environmental strategy, includes auctions for pollution allowances that companies must purchase to offset their carbon emissions. While the agricultural, maritime, and aviation sectors are supposed to be exempt from emission caps and associated fees, many farmers reported that fuel distributors were passing on these costs, with surcharges reaching as high as $0.70 per gallon.
This situation prompted the formation of a workgroup by the Department of Ecology to address the challenges faced by farmers and truckers. Despite their efforts, stakeholders, including the Washington Trucking Associations and the Washington Farm Bureau, expressed dissatisfaction with the progress. These organizations even sought judicial intervention to challenge Ecology’s regulations governing the exemptions, a case that has now reached the Washington State Supreme Court.
In 2024, the Washington Legislature allocated $30 million for rebates to farm fuel users and agricultural transporters who could demonstrate they had paid these surcharges. Managed by the Department of Licensing, the Agriculture Support Program launched in August 2024 but concluded on June 30, 2025. Applications were accepted for fuel purchases made between January 1, 2023, and December 31, 2024. The program received a total of 2,744 applications, disbursing $7,887,820 in rebates across all 39 counties in the state.
Despite the apparent need for continued support, funding for the rebate program was not included in the subsequent budget. While House Bill 1912, authored by Dent, aimed to extend the program through the 2025-27 biennium, the budget passed by legislators did not allocate funds for this initiative. The House had proposed $3 million for the continuation of the program, but the Senate did not include any funding in its version.
As a result, the application period for rebates closed on June 2, 2024, with all received applications processed by the end of the month. In the interim, the Department of Ecology developed the new online directory of retailers who sell exempt agricultural fuel at prices that do not include surcharges. This directory provides essential information, including the names and addresses of retailers, which will be updated as more retailers report their status.
Rep. Dent remains optimistic about future developments, stating, “The work is not over with.” He suggests that further discussions and potential adjustments to the Climate Commitment Act will continue, as agricultural businesses navigate the evolving landscape of climate regulations and their financial implications.