Trial date set in WSDOT gas price whistleblower lawsuit

(The Center Square) – A trial date has been set in a lawsuit involving former Washington State Department of Transportation economist Scott Smith’s claim that he faced hostility and retaliation for refusing to keep quiet about his calculations last year showing the state’s cap-and-trade program would increase gas prices by 45 to 50 cents per gallon.

The trial is scheduled to start on Aug. 18, 2025, in Thurston County Superior Court.

In March, the Citizen Action Defense Fund filed a lawsuit on Smith’s behalf against WSDOT, the Office of Financial Management, and Gov. Jay Inslee's administration.

An internal investigation completed in April did not substantiate Smith's claims he was pressured to lie about gas prices and ultimately forced out of his job because of it.

WSDOT filed a motion to dismiss . In June, Thurston County Superior Court Judge Anne Egeler ruled that the lawsuit could proceed.

“We are pleased that the case is proceeding and for the opportunity to try this matter before a jury next summer,” said CADF Executive Director Jackson Maynard in a news release. “The state pushed our client out of state service for serving his role with integrity, and that is why we are proud to be here fighting for WSDOT to be held accountable.”

According to Smith, he and other coworkers were instructed not to reference cap-and-trade surcharges to evade public discovery and Freedom of Information Act issues.

Smith’s refusal to change his numbers resulted in retaliation on the job and forced him out of state service in early November 2023, per the lawsuit.

The veteran economist’s job was eliminated through House Bill 1838 passed by the Legislature last year.

At the time, Inslee said, “HB 1838 moves transportation revenue forecasting to the Economic and Revenue Forecast Council. This will improve coordination and consistency in forecasting this important revenue source.”

In 2022, Inslee predicted carbon auctions under the 2021 Climate Commitment Act would only cost "pennies" at the pump.

The CCA, which went into effect at the beginning of 2023, provides for carbon auctions as part of a program designed to reduce greenhouse gas emissions by 95% by 2050. Under the CCA, emitters are required to obtain emissions allowances equal to their covered greenhouse gas emissions at quarterly auctions hosted by the state Department of Ecology, or traded on a secondary market, like stocks and bonds.

To date, carbon auctions have brought in more than $2 billion.

Voters will have the final say on the program this Nov. 5 when they render a decision on Initiative 2117 to repeal the CCA and bar state agencies from imposing any type of program involving carbon tax credit trading.