Gov. Jay Inslee proposed a cap and price on carbon emissions Wednesday that he says could raise about $1 billion a year in fees by auctioning pollution credits to greenhouse-gas emitting industries.

The Democrat’s cap-and-trade climate package includes plans to spend $380 million of that new revenue on K-12 public schools. Another $400 million would pay for transportation projects rather than relying on a gas tax increase, and about $163.5 million is earmarked to assist low-income families and energy-intensive industries that are hurt by higher fuel costs.