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A3 THE ASTORIAN • SATURDAY, MAY 11, 2019 Inslee opposes Washington natural gas projects One is a methanol plant in Kalama By MOLLY SOLOMON Oregon Public Broadcasting Washington Gov. Jay Ins- lee has changed his stance on two proposed fossil fuel plants, including a $2 billion gas-to-methanol project in southwest Washington. After signing a bill Wednesday banning frack- ing for oil and natural gas in the state, Inslee announced his opposition to a liquefi ed natural gas plant in Tacoma and a methanol refi nery in Kalama. “We want to be consis- tent to that spirit of progress. Therefore, I cannot in good conscience support contin- ued construction of a liq- uefi ed natural gas plant in Tacoma or a methanol pro- duction facility in Kalama,” the governor said. Inslee’s comments came one day after he signed a new law mandating the state reach 100% carbon-free electricity by 2045. The governor, a Demo- crat, is running for president and has made fi ghting cli- mate change a cornerstone of his campaign. He had said early on that the two projects would reduce greenhouse gasses and produce cleaner energy. But on Wednesday, Ins- lee said he is “no longer con- vinced that locking in these multi decadal infrastruc- ture projects are suffi cient to accomplishing what’s necessary.” Inslee’s offi ce says the governor’s surprise reversal was a direct response to the growing threat of a warming climate. “As we learn more about the urgency of climate change and the need to act now, long-term natural gas is not consistent with where we want to move as a state,” said Jaime Smith, the gover- NW Innovation Works The proposed site at the Port of Kalama where NW Innovation Works is proposing a 90-acre methanol plant. nor’s communications direc- tor. “Where we once thought we could use these as cleaner options, we just don’t have the time to do that.” Puget Sound Energy’s $300 million LNG plant is already under construction at the Port of Tacoma. The Puyallup Tribe and environ- mental groups in Tacoma have been fi ghting it. Puget Sound Energy offi cials told KUOW they were surprised by the governor’s switch on their half-built facility. The Northwest Inno- vation Works project in Kalama is fi nalizing its envi- ronmental review. The plant would convert lique fi ed nat- ural gas piped in from Can- ada to methanol. The prod- uct would then be loaded onto ships bound for China to be made into plastics and other materials. A recent investigation by Oregon Public Broadcasting showed that the company has also been marketing the methanol to investors as a potential fuel source. This is in direct contrast to what Northwest Innovation Works has said publicly — and to state regulators — about the project, that it would only be used for plastic products. When asked if this weighed on Inslee’s decision to oppose the project, Smith said: “Anytime you’re told a project is going to be used for one purpose, and then you’re shown it will be used for other purposes, nobody’s happy to see that.” On Wednesday, North- west Innovation Works pushed back against Inslee’s new stance. “Our project aligns with Washington state’s commit- ment to carbon reduction,” Kent Caputo, a company spokesman, said in a state- ment. “We remain confi - dent that the regulatory pro- cess will conclude with an approval for this innovative way to make durable con- sumer products like fl eece vests and kayaks.” Supporters of the metha- nol plant recalled how Ins- lee came to Cowlitz County in 2015 to celebrate the proj- ect. His reversal led some to wonder whether it is infl u- enced by his presidential run on a green energy platform. “I worry that Jay’s inter- ests here are more tied to his personal presidential ambi- tion than what the science says and what is right for this state,” said Ted Sprague, Cowlitz Economic Develop- ment Council president. Environmental groups who have criticized the projects applauded Inslee’s change of heart. “For years, Washington communities have organized and mobilized to demand the rejection of these fracked gas facilities, and today, Gov. Inslee listened to those calls,” said Michael Brune, the Sierra Club executive director. “This is a really big deal,” said Dan Serres, conserva- tion director with Columbia Riverkeeper, “and I think it shows that the Kalama facil- ity has a very short future.” Inslee emphasized the opposition was his per- sonal stance and the proj- ects would continue to go through the state’s regula- tory process. But opponents say his words carry weight, especially for fossil fuel projects originally billed as cleaner energy. “Having Washington’s governor, who sees him- self as a climate champion, speak out about this does change the conversation,” Serres said. Washington state sales tax break in jeopardy A concern for border regions By JADE McDOWELL Hermiston Herald Oregon residents who shop while in Washington state will likely start seeing sales tax added to their bill in July. Washington legisla- tors have passed Senate Bill 5997, which ends the practice of retailers tak- ing sales tax off of Ore- gonians’ purchases after they show identifi cation . Instead, out-of-state resi- dents who paid more than $25 in state sales taxes in a year would have to fi ll out tax forms once a year ask- ing for reimbursement. The bill is now on Wash- ington Gov. Jay Inslee’s desk, where he can choose to sign it, veto it or take no action. It would take effect July 1, and proponents of the bill estimate it would raise about $53 million per two-year budget cycle from visitors who won’t bother to submit the forms or won’t reach the $25 minimum. The change is mostly likely to affect residents liv- ing on the state line. How- ever, in the case of Pacifi c County, Washington, and Clatsop County, it’s unclear what impact there will be on retail commerce. In some cases, the products purchased by out-of-state tourists are exempt from sales tax, while some mer- chants think the tax — a lit- tle over 8 percent — isn’t likely to infl uence many purchasing decisions made by tourists visiting the beach communities. Chinook Observer Dennis Co. Ace is concerned about the potential tax change. “Because most of our items are food-related and therefore exempt from the tax, we don’t have much to do with the sales tax form for our Oregon customers,” Ralph Moore, the owner of The Candy Man in Long Beach, said. “A quick survey with the local merchants is that they do a brisk business with the Oregon people and the sales tax exemption but they are not sure it would hurt their business once it is done away with,” Moore said. “I understand it just causes them more paper- work for the state. My opin- ion is that the tourist indus- try won’t be affected much, but any business that does big-ticket items that might draw business to the Wash- ington side might be.” The strongest expression of concern came from Den- nis Co. Ace, which sells a broad array of products of interest to regional resi- dents and tourists alike. “As a company, we would not support the move to eliminate the retail sales tax exemption for Oregon residents. Our Long Beach store is 30 minutes from the Oregon border. Eliminat- ing the exemption would deter Oregon shoppers from crossing over to shop at our store due to the addition of sales tax. Why would they want to cross the bridge into Washington if they can pur- chase the goods for less in Oregon,” Colleen Nissell, the Dennis Co. Ace associ- ate district manager, said. Long Beach City Admin- istrator David Glasson said the change probably won’t make much difference for town fi nances. “I don’t think it would add up to 1 percent of our current col- lections,” he said. “Based on last year, that would either add up to $6,000 in tax collections, or if people choose not to buy because of it, $6,000 less.” ‘We’ll take their money’ Farther east on the border between the states, Kacie Evans, Umatilla Chamber of Commerce director, said Contact: John Anderson • 360-269-2500 requested, the sales price of the item, the amount of sales tax paid on the item, the date of the purchase, the name of the seller and the physical address where the sale took place, and copies of sales receipts showing the qualifi ed purchases.” ‘Devastating’ According to a legisla- tive staff summary of the bill, public testimony on behalf of the bill stated that it is “thoughtful tax policy” that helps bring in adequate revenue for state services and pay for roads and other services visitors use. Opponents of the bill testifi ed that it would hurt retailers living near the Oregon border and be “dev- astating” to Washington’s travel industry. “Buyers who are enti- tled to the exemption will be understandably unhappy with the bookkeeping requirements that appear to be designed to make the process diffi cult,” Tom Downer, of Jack’s Country Store, said. “We’re work- ing on a handout to help our cashiers defuse the situa- tion by providing informa- tion for complying with the new requirements.” In Long Beach, Moore commented that the state’s manipulations of taxation are consistently tone deaf to the concerns of small businesses. “Every government, state and local, is look- ing for money, never really concerned about how busi- nesses are affected,” he said. “Fortunately, good business people seem to be smarter tha n the govern- ment and continue to fi nd ways to survive.” The Chinook Observer contributed to this report. ROBERT STEVENS SPRING ART SHOW May 10 to May 23 Forsberg Art Galley/Rose Center for the Arts Lower Columbia College 1600 Maple Street, Longview, WA WANTED Alder and Maple Saw Logs & Standing Timber Northwest Hardwoods • Longview, WA she thinks Washington’s loss will be Oregon’s gain, as more Oregonians choose to shop local. “I think a lot of people are going to stay home,” she said. Evans said cities on the Washington border already benefi t from a daily fl ow of Washington residents choosing to make big pur- chases in Oregon to avoid sales tax. “We don’t discriminate; we’ll take their money,” she said. O n the Long Beach Pen- insula, the scenario Evans outlined is exactly the con- cern for merchants like Dennis Co. Ace. “The Long Beach area is a tourist destination, and we want to continue to attract visitors to the area. Removing the exemption may keep some of those travelers at Oregon beaches instead of choosing to vaca- tion in Washington,” Nis- sell said. “This would not only impact our company in the loss of retail sales, but would also impact other businesses on the p eninsula due to a possible reduction in visitors.” If Inslee signs Sen- ate Bill 5997, Oregon resi- dents who wish to be reim- bursed for sales tax will be required to submit proof of nonresidency and informa- tion required by the rev- enue department, which may include, “a descrip- tion of the item purchased for which a remittance is Robert Stowe - Featured Artist OPEN: Monday through Thursday 10am to 4pm Accepting Entries May 7 10am - 3pm For more information visit: www.columbiaartists.org Reception and Awards Friday, May 10, 4 - 6pm Port Commission Position #4 Leadership Integrity Experience Teamwork Thank you for your vote! Paid for by Stevens for Port Commissioner
