Oil barrel fee is approved for Puget Sound clean-up

The House just voted by the narrowest of margins to approve a $1.50 per barrel fee on petroleum products.

The 51-to-45 vote to pass House Bill 1614 came over objections from minority Republicans. They warned with apocalyptic tones that it will drive up the cost of gasoline, close refineries in Whatcom County, kill jobs and harm businesses that are running on the edge.

And incidentally, they acknowledged, it could help clean up Puget Sound — if the money really gets used for cleanup.

The Democrats got a helpful ruling from House Speaker Frank Chopp, advised by his attorney, that the $1.50 charge is a fee, not a tax. That enabled the Democrats, who have a 62-36 majority (plus sympathetic GOP Rep. Tom Campbell from Roy making it 63-35), to protect some members from a vote that likely will be seen as a tax increase.

The bill raises about $100 million a year for storm water cleanup grants for local governments and the Department of Transportation. The locals now often rely on property taxes for storm-water programs. The debate was strong on both sides, and environmental groups ranging from Washington Environmental Council to People for Puget Sound strongly backed the measure.

HB 1614 now goes to the Senate, where it must be approved by tomorrow. Gov. Chris Gregoire also would need to sign it.  It appears the bill has problems in the Senate where lawmakers said it was arriving late and they were not sure Lt. Gov. Brad Owen, the presiding officer, would give the same ruling on the Initiative 960 requirement by calling it a fee.

Republicans stuck to their session theme, which is to avoid voting for any tax or fee increase. And they repeated their mantra that the public won’t accept any. "Unfortunately it’s not only their heads that are shaking," Rep. Ed Orcutt, R-Kalama, said of skeptical voters. "They are shaking their fists as well."

Orcutt suggested that the move helps backfill money the Democrats already swept out of environmental accounts in the capital budget, pushing that money into the operating budget that passed after a stormy debate last evening.

But numerous Democrats spoke in favor, including Rep. Sharon Nelson of Vashon who said the equivalent of the Exxon Valdez oil spill leaches into Puget Sound, and Rep. Timm Ormsby of Spokane who likened the fee to a school impact fee. He and others said cities and counties need help keeping up with efforts to comply with federal requirements for storm water runoff.

And Rep. Fred Finn, the freshman Democrat from west Thurston County, said the bill would not harm oil companies, but inaction would harm small businesses that grow shellfish, rely on fishing and other Puget Sound activities. Finn’s 35th district wraps around several lower inlets of Puget Sound.

"This is not a tax. It is a fee designed to correct the problems we have in our environment," Finn said. "Beyond that, it is the right thing to do, the right thing to do for all of our small businesses."’

Among South Sound lawmakers, those voting yes included Republican Rep. Tom Campbell of Roy and Democratic Reps. Fred Finn of Thurston County, Sam Hunt of Olympia, and Brendan Williams of Olympia.

South Sound lawmakers voting against were Republican Reps. Gary Alexander of Thurston County, Richard DeBolt of Chehalis, and Jim McCune of Graham, and Democrat Kathy Haigh of Shelton.

One other Republican, Rep. Skip Priest of Federal Way, supported it in the House, and 13 Democrats overall opposed it. The Democrats voting against besides Haigh were Reps. Brian Blake of Aberdeen, John Driscoll of Spokane, Laura Grant-Herriot of Walla Walla, Chris Hurst of Enumclaw, Troy Kelley of Lakewood, Kelli Linville of Bellingham, Jeff Morris of Anacortes, Tim Probst of Vancouver, Dave Quall of Mount Vernon, Larry Springer of Kirkland, Dean Takko of Longview, and Deb Wallace of Vancouver.