March 21, Dear Brothers and Sisters:

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1 March 21, 2018 Dear Brthers and Sisters: On March 2 nd the Washingtn State Labr Cuncil, AFL-CIO, as part f the Alliance fr Jbs and Clean Energy, filed a carbn fee and investment initiative t the peple fr the 2018 ballt. The Attrney General s ffice has given the iniative the number I 1631 is a critical plicy fr addressing climate change and fr prtecting and grwing jbs fr ur unins and labr mvement in Washingtn State. I 1631 will create cleaner air t breathe and cleaner water t drink fr ur grandchildren and future generatins. But it will als create ver a billin dllars a year f investments in creating infrastructure, clean energy, and natural resurce jbs. I 1631 utlines investment criteria which gives preference t investments that pay prevailing wages, use apprenticeship utilizatin, sign cmmunity wrkfrce agreements with lcal hire prvisins, that use materials and prducts with lw carbn cntent ( dmestic cntent ), and where emplyers have cmplied with federal and state emplyment and health and safety laws and regulatins. Unin labr will sit n the public Oversight Bard and will c-chair the clean energy fund the largest f the three funds created by I Tw unin members will als sit n the Ecnmic and Envirnmental Justice Panel which versees the $50 millin Just Transitin accunt which prvides wage and benefit (health and pensin) replacement and retraining benefits t dislcated fssil fuel wrkers, including building trades wrkers cntracted at the refineries. Emplyment in energy intensive and trade expsed industries (EITEs), e. g., aluminum, steel, cement, pulp and paper, etc., will be prtected. EITEs will be exempt frm the carbn fee t prevent any leakage f jbs r pllutin ut f state. We want these gd unin industries t expand and prsper in Washingtn State.

2 I 1631 will be like having an additinal capital budget every year. The carbn fee will bring in abut $1.3 billin a year that will create thusands f public and private sectr jbs at the same time we imprve the health f ur air, water, frests, and cmmunities by significantly lwering carbn emissins. The transitin away frm fssil fuels has begun but withut much labr input. I-631 changes that by placing unin labr at the table with strng emplyment standards, strng investment criteria, and a strng vice. I 1631 is a win-win fr the Washingtn State Labr Mvement and fr ur public and private sectr unins. Over the next tw mnths I will be talking with ur labr cuncils and affiliates abut I If yu wuld like t invite me t address yur Executive Bard r membership meeting abut I 1631, please cntact Janet Hays, jhays@wslc.rg, and we will get t yu as sn as we can. Thank yu. In Slidarity, Jeffrey G. Jhnsn, President Washingtn State Labr Cuncil, AFL-CIO th Avenue Suth Seattle, WA Office Cell jjhnsn@wslc.rg

3 I-1631 Prtect Washingtn Act Review f labr, jbs, and equity cmpnents April 16, 2018 The need fr equitable and pr-jbs climate actin We knw addressing climate change is necessary and imprtant. We als knw that we can and must take climate actin in ways that create and supprt gd jbs and prmte equitable cmmunities, instead f creating plicies that simply re-create an ecnmy run by and fr the 1%. Opprtunity t set a mdel We als knw that at present, climate leadership will have t cme frm states rather than the federal gvernment. Other regins including Califrnia, the US Nrthwest states, and British Clumbia all have carbn pricing plicies thugh all have flaws, including the need t guide investments twards creating and supprting family-sustaining jbs. Washingtn has the pprtunity t set a better mdel. Creating and supprting jbs in a clean energy ecnmy The Green New Deal fr Washingtn State reprt says that meeting ur climate challenges in Washingtn State can create up t 41,000 jbs per year, with average wages up t $90, The Ecnmic Analysis f Water Infrastructure and Fisheries Habitat Restratin Needs study in 2017 fund that investing fully in water infrastructure in Washingtn State wuld result in a stimulus effect f ver $50 billin in ur ecnmy and supprt ver 16,000 jbs annually. 2 The Prtect Washingtn Act wuld cntribute t meeting these gals. What s in it? Findings and determinatins: The transitin t the clean energy ecnmy will have tremendus ecnmic and jb grwth benefits. Washingtn's traditin f innvatin and technlgy develpment cmbined with the funding available under this chapter will increase ecnmic pprtunity, enhance ecnmic and envirnmental sustainability, and create and supprt family-sustaining jbs acrss the state. $1.3 billin dllars per year will be generated by a fee n carbn emissins, which will be invested in: Over $900 millin per year in Clean Air and Clean Energy (70% f ttal) Over $300 millin per year in Clean Water and Healthy Frests (25%) Apprximately $65 millin per year in Safe Cmmunities (5%) This will result in huge new investments akin t a new capital budget creating and supprting jbs in: Clean energy, electric vehicles, battery strage, deep energy efficiency retrfits Ecnmic Analysis f Water Infrastructure and Fisheries Habitat Restratin Needs, WA OFM,

4 Industrial efficiency including carbn sequestratin Water infrastructure, strmwater prjects, fld management Frest management t reduce frest fire risk Rural bradband installatin t reduce vehicle miles travelled, and mre. Carbn reductin: 20 millin metric tns f carbn reduced. The plicy will help Washingtn meet targets f 40% C02 emissin reductins (vs 1990 levels) by Investment criteria will encurage prjects that supprt wrkers and cmmunities Buy Clean: Preference fr lw-carbn materials, encurages dmestic surcing and clean lcal manufacturing Labr standards: Supprt f high quality labr standards, prevailing wage rates determined by lcal cllective bargaining, apprenticeship and preapprenticeship utilizatin and preferred entry standards, cmmunity wrkfrce agreements with pririty lcal hire, prcurement frm wmen, veteran, and minrity-wned businesses, prcurement frm and cntracts with entities that have a histry f cmplying with federal and state wage and hur laws and regulatins, and ther related labr standards Safety: Reduced wrker and public expsure t pllutants. Investments will be targeted t cmmunities that need them mst Pllutin and health actin areas priritized Much f investment mney must g t areas burdened by unemplyment, pllutin, and ther factrs this means mney will flw twards rural ecnmic develpment. Exemptins fr industries at risk f being pushed ut f state Energy-intensive trade-expsed industries wuld struggle t stay in business if they have t pay a carbn fee when cmpetitrs in ther regins dn t. Mving their jbs and emissins ut f Washingtn wuld be a lse-lse utcme fr the climate and ur wrkers. S 1631 exempts them. The list f exempt industries includes aluminum (including Kaiser Aluminum), steel, pulp and paper, cement, glass and thers. Other regins like CA where such industries have been exempt have nt seen jb lss in these sectrs due t a carbn price. Oversight and accuntability Oversight Bard with Clean Air and Clean Energy, Clean Water and Healthy Frests, and Ecnmic and Envirnmental Justice Panels Labr c-chair fr Energy panel, and at least 2 labr members n Ecnmic & Envirnmental Justice panel (which includes Just transitin investment versight) Evaluatin reprts every fur years including greenhuse gas reductins, wrker hurs created and jb quantity, quality, and access supprted by the plicy Just Transitin Mst substantial just transitin plicy in the natin, with at least $50M set aside (replenished), and mre if needed fr fssil fuel industry wrkers. Wrker supprt may include but is nt limited t full wage replacement, health benefits, and pensin cntributins fr every wrker within five years f retirement; full wage replacement,

5 health benefits, and pensin cntributins fr every wrker with at least ne year f service fr each year f service up t five years f service; wage insurance fr up t five years fr wrkers reemplyed wh have mre than five years f service; up t tw years f retraining csts including tuitin and related csts, based n in-state cmmunity and technical cllege csts; peer cunseling services during transitin; emplyment placement services, priritizing emplyment in the clean energy sectr; relcatin expenses; and any ther services deemed necessary by the envirnmental and ecnmic justice panel. Ultimately, this plicy is nt perfect, but it makes significant imprvements n previus climate plicies, written with all parties making cmprmises t gain cnsensus. There is ptential t create many jbs and set a strng new standard fr just transitin fr wrkers and cmmunities. Labr will have numerus seats at the table fr lnger term shaping f the utcmes thrugh rulemaking and versight. And while in ther regins climate plicies are ften written withut labr at the table, in Washingtn state there is a much strnger attempt t priritize wrkers, jbs, and ecnmic justice.