Ericksen to host telephone town hall over proposed fee on refineries

SAM TAYLOR - THE BELLINGHAM HERALD

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State Rep. Doug Ericksen is inviting Whatcom County residents to join in on a telephone town hall Wednesday, Dec. 2, to discuss proposed state legislation that creates a new fee on oil refineries.

The Ferndale Republican is concerned about House Bill 1614, which is designed to prevent petroleum pollution in stormwater runoff, that would provide local jurisdictions with matching funds for stormwater facility retrofits by charging oil companies $1.50 per barrel of oil.

Ericksen said via e-mail that the new charge, which he termed a tax rather than the legislation's use of the term "fee," would amount to $750 million being paid over 10 years by BP's Cherry Point refinery and Conoco Phillips' facility west of Ferndale.

"We cannot allow our refineries to be pushed out of our state like Boeing. I look forward to sharing the ideas I have to improve our economy, and to preserve and eventually create jobs," Ericksen said of his concerns and the telephone town hall meeting.

The 42nd Legislative District Representative is joined by seat mate Kelli Linville, D-Bellingham, in opposition to the legislation.

Both legislators voted against the proposal when it came up for consideration in 2009. Ericksen wants to defeat it again when it comes up in 2010.

Linville said the legislation is unfair, because stormwater runoff comes from many sources, not just oil companies, and a new fee on one industry doesn't change behaviors of the public, which is also important in preventing polluted stormwater.

"There has to be a better way to change our behaviors rather than just expect somebody else to pay for it," she said.

Creating the per-barrel charge on petroleum products would double the tax liability for BP, said Bill Kidd, the director of external affairs for BP Cherry Point.

"We just think that is unconscionable. Where have you heard anybody having their tax doubled in one chunk?" he said.

Kidd said such a tax wouldn't necessarily force BP out of Whatcom County or Washington, but it could affect how much capital funding the worldwide corporation wants to put into an area that may no longer be as competitive as other refineries around the globe.

State Rep. Timm Ormsby, D-Spokane, is the main sponsor of the bill and said that the reason oil companies would be charged the new fee is because they're the single-largest contributor to stormwater contamination by volume.

The legislation would only apply to products consumed in Washington and not to those exported, he pointed out. The fee also wouldn't be applied to barrels of home heating oil, agricultural-use diesel or aviation fuel. It would apply to gasoline, diesel, petroleum lubricants, industrial fuels, asphalt and road oils.

Ormsby said the legislation is needed to give local governments help with millions of dollars in projects that they're mandated to undertake by state law. As of now, some can't afford the projects and must put them off or find other sources of revenue, perhaps in property tax increases, he said.

"I'd like to see the state contribute to the resolution," Ormsby said.

JOIN THE CONVERSATION

What: State Rep. Doug Ericksen will have a telephone town hall meeting on proposed state legislation that helps to regulate petroleum pollution into stormwater by creating a $1.50 fee on barrels of petroleum products. It would impact Whatcom County refineries.

When: 7 p.m. Wednesday, Dec. 2.

How to connect: Participants can call in at (877) 229-8493 and enter PIN 15368.