Washington House OKs bill for fee on oil products

The state House has approved a $1.50 fee on each barrel of certain oil products brought into Washington, with supporters saying the money will help pay for cleaning up stormwater runoff that pollutes Puget Sound and other waters.

The measure passed on a 51-45 vote Saturday and moved to the Senate for further consideration.

If the bill becomes law, the new fee would be charged to refineries and others that produce gasoline, diesel, lubricants, industrial fuels, asphalt and road oil. Crude oil, jet fuel and home heating oil would be exempt.

Republicans insisted the fee was actually a tax and that the costs would be passed down to consumers, so the measure should have to go to the ballot under requirements for voter approval of certain tax increases.

But Democrats say it's a fee, because it's specifically tied to cleaning up pollution caused by petroleum products that wash into the environment during storms. Supporters say the bill is needed to help governments with petroleum cleanup requirements under the federal Clean Water Act.

Under the measure, starting Jan. 1 the fee would be charged "on the first possession" - basically, by refiners and other producers - "of petroleum products that contribute to stormwater pollution."

The fee is expected to raise $100 million a year for for stormwater grant programs and other projects dealing with petroluem pollution of stormwater runoff.

The petroleum fee bill is House Bill 1614.