Seattle Mayor Proposes Home Heating Oil Tax To Reduce Emissions

SEATTLE, WA — Mayor Jenny Durkan is proposing a 24-cent per gallon tax on home heating oil in Seattle in a bid to reduce the city's overall carbon emissions.

Durkan is asking the Seattle City Council to consider her proposal, which would also require all homeowners to either remove or decommission underground oil tanks by 2028. If approved, the tax would go into effect on July 1.

Instead of oil, Durkan said that homeowners should consider upgrading to an electric heat pump.

"A typical 500-gallon oil tanks costs a household $1,700 per year. An electric heat pump is more than twice as efficient as an oil furnace and a conversion from oil would save the average household about $850 every year compared to oil heat systems," a statement from the mayor's office said.

On Tuesday, the cost of home heating oil was $343 for 100 gallons, according to the Ballard Oil Company. The per-gallon price drops for higher quantities of oil, however.

Converting from oil to electric or other types of heat can be very expensive. According to Angie's List, the cost of removing a basement oil tank starts at $1,000 with much higher costs for underground or leaking tanks. Electric heat pump prices start at around $1,000, according to This Old House magazine.

There are about 18,000 homes in Seattle that use heating oil. The mayor's office estimates that 1,000 homeowners who would qualify for a refund on costs related to moving away from oil heat, which would be paid for by the tax.

If all 18,000 homes got rid of oil heat, the mayor's office said, Seattle could reduce its carbon emissions by 433,000 metric tons over the next decade.