By Bill Lucia | Editor
Washington’s economy is giving off some not-so-great signals: an unemployment rate above the national average, mounting tech layoffs, souring sentiment among businesses, and perennial problems with the state budget. Against this backdrop, Democratic Gov. Bob Ferguson announced yesterday he’s creating a new 26-member council to help draft a statewide economic development plan by next year. “We cannot take our strength for granted, and indeed we have many challenges,” Ferguson said.
Also in today’s edition…
Washington moves closer to having a joint cap-and-trade market with California and Quebec.
The Washington Supreme Court sides with the state in a long-running dispute around an agricultural fuel exemption under the state’s climate law.
And, President Donald Trump’s controversial executive order on mail-in voting hits a roadblock in federal court.
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Bellevue is seen through fog and low clouds, with Seattle in the distance. (Photo by Feng Wei Photography/Getty Images)
By Jake Goldstein-Street and Jerry Cornfield
Leaders from Microsoft, Boeing, Puget Sound Energy, the Washington State Labor Council and the state’s Building and Construction Trades Council are among those who will serve on the governor’s economic development panel. Lt. Gov. Denny Heck is the lone elected state official, aside from Ferguson.
Business interests have been increasingly critical of Ferguson and Washington Democrats during the governor’s first year-and-a-half in office, chafing over billions of dollars in new and increased taxes pushed through to fill a budget shortfall in 2025 and a regulatory climate they describe as onerous.
Joe Fain, president and CEO of the Bellevue Chamber of Commerce and a former Washington state senator, believes the state can get on a stronger economic track.
“I’m optimistic that the governor is taking a serious problem seriously,” said Fain, who is not on the panel. “Many say it’s too late. But if our elected leaders take what comes out of this effort seriously and are honest about how high costs and complex regulations are hurting businesses of all sizes, Washington can still control its own destiny.”
Gov. Bob Ferguson, left, and director of the Department of Ecology, Casey Sixkiller, right, hold the signed agreement to link Washington’s carbon market with the California-Quebec market. (Photo by Aspen Ford/Washington State Standard)
By Aspen Ford
Washington took a key step Thursday to combine its carbon market with one operating in California and Quebec. Once the programs are joined, it’s expected to drive down costs for businesses and consumers. State Department of Ecology Director Casey Sixkiller signed a so-called linkage agreement to join the markets during a ceremony in Seattle. California and Québec still have to complete additional steps, including adopting regulations, before a linked market can take effect. Officials say the markets should be operating together by 2027. Since 2023, Washington has raised nearly $5 billion from cap-and-trade auctions under the Climate Commitment Act.
By Jerry Cornfield
A multi-year fight over a Climate Commitment Act exemption for agricultural fuel concluded with a state Supreme Court decision Thursday. In a unanimous ruling, the court upheld Department of Ecology regulations that guide how the exemption is made available. The Washington Farm Bureau and Washington Trucking Associations had challenged the regulations.
The agricultural, maritime and aviation sectors are supposed to be exempt from fees fuel companies might pass to customers to cover the cost of buying carbon emission allowances under the climate law. Fuel used for trucking crops and other agricultural goods is exempt as well.
But shortly after the program launched, farmers and truckers complained of difficulties accessing the exemption and said they were wrongly paying as much as 70 cents a gallon extra on fuel purchases. Since then, the state took steps to address the situation, including a $30 million rebate program and the creation of a map that shows where retailers sell agricultural fuel without Climate Commitment Act surcharges.
By Jonathan Shorman
A federal judge yesterday blocked major portions of President Donald Trump’s executive order restricting voting by mail, finding he had exceeded his constitutional authority. The decision halts U.S. Postal Service efforts to require states to submit the names of likely mail voters before it delivers ballots. It also stops the U.S. Department of Homeland Security from compiling lists of voting-age citizens in each state. “The Constitution does not grant the President any specific powers over elections,” wrote U.S. District Judge Indira Talwani. A Trump administration appeal is nearly certain.
ICYMI
WA child welfare deaths drop significantly after record year | by Jake Goldstein-Street
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