The Climate Commitment Act and the Clean Fuel Standard are market-based policies. The laws require major greenhouse gas emitters to stay under a statewide limit, then lets those businesses determine the best method to accomplish that. Some of the third-party analyses assume that businesses won't take steps to reduce their compliance costs and that consumers won't reduce their personal transportation costs.
These assumptions do not match standard economic modeling. They do not match what we see in other regions that have implemented similar carbon-reduction initiatives. Our projections are consistent with real-world outcomes seen in California, Oregon, and British Columbia, where markets for low-carbon fuels and alternative transportation options continue to grow and cost impacts remain low.
Here in Washington, when fuel prices topped $5 in mid-2022, consumer data shows that people responded by driving less, buying more fuel-efficient vehicles, or switching to electric vehicles. Even though not everyone is able to take steps to cut their personal costs, the response was strong enough to reduce overall demand and bring down fuel prices for everyone. Due to these changes in supply and demand, the record-high prices in Summer 2022 have declined by almost $1 per gallon.