title: RCW 70A.535.025

text:
(1) The department shall adopt rules that establish standards that reduce carbon intensity in transportation fuels used in Washington. The standards established by the rules must be based on the carbon intensity of gasoline and gasoline substitutes and the carbon intensity of diesel and diesel substitutes. The standards:
(a) Must reduce the overall, aggregate carbon intensity of transportation fuels used in Washington;
(b) May only require carbon intensity reductions at the aggregate level of all transportation fuels and may not require a reduction in carbon intensity to be achieved by any individual type of transportation fuel;
(c) Must assign a compliance obligation to fuels whose carbon intensity exceeds the standards adopted by the department, consistent with the requirements of RCW 70A.535.030; and
(d) Must assign credits that can be used to satisfy or offset compliance obligations to fuels whose carbon intensity is below the standards adopted by the department and that elect to participate in the program, consistent with the requirements of RCW 70A.535.030.
(2) The clean fuels program adopted by the department must be designed such that:
(a) Regulated parties generate deficits and may reconcile the deficits, and thus comply with the clean fuels program standards for a compliance period, by obtaining and retiring credits;
(b) Regulated parties and credit generators may generate credits for fuels used as substitutes or alternatives for gasoline or diesel;
(c) Regulated parties, credit generators, and credit aggregators shall have opportunities to trade credits; and
(d) Regulated parties shall be allowed to carry over to the next compliance period a small deficit without penalty.
(3) The department shall, throughout a compliance period, regularly monitor the availability of fuels needed for compliance with the clean fuels program.
(4)(a) Under the clean fuels program, the department shall monthly calculate the volume-weighted average price of credits and, no later than the last day of the month immediately following the month for which the calculation is completed, post the formula and the nonaggregated data the department used for the calculation and the results of the calculation on the department's website.
(b) In completing the calculation required by this subsection, the department may exclude from the data set credit transfers without a price or other credit transfers made for a price that falls two standard deviations outside of the mean credit price for the month. Data posted on the department's website under this section may not include any individually identifiable information or information that would constitute a trade secret.
(5)(a) Except as provided in (b) of this subsection, the greenhouse gas emissions attributable to each unit of the fuels must be reduced to 45 percent below 2017 levels by January 1, 2038, based on the following schedule:
(i) 0.5 percent each year in 2023 and 2024;
(ii) An additional one percent each year in 2025;
(iii) An additional five percent on January 1, 2026;
(iv) An additional four percent beginning January 1, 2027; and
(v) As determined by the department by rule, no less than an additional three percent and no more than an additional four percent each year beginning January 1, 2028, through January 1, 2038.
(b)(i) Taking effect no earlier than January 1, 2032, the department may adjust the carbon intensity standard established in (a) of this subsection to require a 55 percent reduction in the greenhouse gas emissions attributable to each unit of fuels by January 1, 2038, and may adjust the intermediate annual reduction targets for the years 2032 through 2037 established in (a) of this subsection accordingly, if:
(A) The department determines that as of January 1, 2030, at least one rule that is part of the zero emission vehicle program established under chapter 70A.30 RCW was not being enforced; or
(B) The department determines, based on the greenhouse gas emissions data reported under RCW 70A.15.2200 for calendar year 2030, that greenhouse gas emissions associated with transportation fuels covered under this chapter have not been proportionately reduced relative to the 45 percent reduction in RCW 70A.45.020, and that an increase of the carbon intensity standard to require a 55 percent reduction in the greenhouse gas emissions attributable to each unit of fuel by January 1, 2038, is necessary to proportionately reduce the greenhouse gas emissions associated with transportation fuels covered under this chapter relative to the 70 percent reduction in RCW 70A.45.020.
(ii) Taking into consideration the fuel supply forecasts produced under RCW 70A.535.100, the department may, at any time between now and 2038, adjust the carbon intensity standard for a calendar year to be up to two percent less than the percentage reduction in the carbon intensity standard for that year as established in (a) of this subsection if the department determines that doing so is necessary to avoid the department issuing a forecast deferral under RCW 70A.535.110.
(6) Beginning with the program year beginning in calendar year 2030, the department may not increase the carbon intensity reductions required by the applicable clean fuels program standard adopted by the department under subsection (5) of this section beyond a 20 percent reduction in carbon intensity until the department demonstrates that at least one new or expanded biofuel production facility has received a siting, operating, or environmental permit after January 1, 2025.
(7) Transportation fuels exported from Washington are not subject to the greenhouse gas emissions reduction requirements in this section.
(8) To the extent the requirements of this chapter conflict with the requirements of chapter 19.112 RCW, the requirements of this chapter prevail.
[ 2025 c 319 s 1; 2022 c 182 s 408.]
Notes:
Effective date—2022 c 182 ss 313, 408-414, and 421: See note following RCW 82.21.030.
Intent—2022 c 182: See note following RCW 70A.65.240.

catchline: Carbon intensity in transportation fuels—Standards to reduce carbon intensity—Adoption of rules—Monthly calculation.


doc_type: statute

jurisdiction: wa

title: RCW 70A.535.030

text:
The rules adopted by the department to achieve the greenhouse gas emissions reductions per unit of fuel energy specified in RCW 70A.535.025 must include, but are not limited to, the following:
(1) Standards for greenhouse gas emissions attributable to the transportation fuels throughout their life cycles, including but not limited to emissions from the production, storage, transportation, and combustion of transportation fuels and from changes in land use associated with transportation fuels and any permanent greenhouse gas sequestration activities.
(a) The rules adopted by the department under this subsection (1) may:
(i) Include provisions to address the efficiency of a fuel as used in a powertrain as compared to a reference fuel;
(ii) Consider carbon intensity calculations for transportation fuels developed by national laboratories or used by similar programs in other states; and
(iii) Consider changes in land use and any permanent greenhouse gas sequestration activities associated with the production of any type of transportation fuel.
(b) The rules adopted by the department under this subsection (1) must:
(i) Neutrally consider the life-cycle emissions associated with transportation fuels with respect to the political jurisdiction in which the fuels originated and may not discriminate against fuels on the basis of having originated in another state or jurisdiction. Nothing in this subsection may be construed to prohibit inclusion or assessment of emissions related to fuel production, storage, transportation, or combustion or associated changes in land use in determining the carbon intensity of a fuel;
(ii) Measure greenhouse gas emissions associated with electricity and hydrogen based on a mix of generation resources specific to each electric utility participating in the clean fuels program. The department may apply an asset-controlling supplier emission factor certified or approved by a similar program to reduce the greenhouse gas emissions associated with transportation fuels in another state;
(iii) Include mechanisms for certifying electricity that has a carbon intensity of zero. This electricity must include, at minimum, electricity:
(A) For which a renewable energy credit or other environmental attribute has been retired or used; and
(B) Produced using a zero emission resource including, but not limited to, solar, wind, geothermal, or the industrial combustion of biomass consistent with RCW 70A.45.020(3), that is directly supplied as a transportation fuel by the generator of the electricity to a metered customer for electric vehicle charging or refueling;
(iv) Allow the generation of credits associated with electricity with a carbon intensity lower than that of standard adopted by the department. The department may not require electricity to have a carbon intensity of zero in order to be eligible to generate credits from use as a transportation fuel; and
(v) Include procedures for setting and adjusting the amounts of greenhouse gas emissions per unit of fuel energy that is assigned to transportation fuels under this subsection.
(c) If the department determines that it is necessary for purposes of accurately measuring greenhouse gas emissions associated with transportation fuels, the department may require transportation fuel suppliers to submit data or information to be used for purposes of calculating greenhouse gas emissions that is different from or additional to the greenhouse gas emissions data reported under *RCW 70A.15.2200(5)(a)(iii).
(d) If the department determines that it is necessary for purposes of accurately measuring greenhouse gas emissions associated with electricity supplied to retail customers or hydrogen production facilities by an electric utility, the department may require electric utilities participating in the clean fuels program to submit data or information to be used for purposes of calculating greenhouse gas emissions that is different from or additional to the fuel mix disclosure information submitted under chapter 19.29A RCW. To the extent practicable, rules adopted by the department may allow data requested of utilities to be submitted in a form and manner consistent with other required state or federal data submissions;
(2) Provisions allowing for the achievement of limits on the greenhouse gas emissions intensity of transportation fuels in RCW 70A.535.025 to be achieved by any combination of credit generating activities capable of meeting such standards. Where such provisions would not produce results counter to the emission reduction goals of the program or prove administratively burdensome for the department, the rules should provide each participant in the clean fuels program with the opportunity to demonstrate appropriate carbon intensity values taking into account both emissions from production facilities and elsewhere in the production cycle, including changes in land use and permanent greenhouse gas sequestration activities;
(3)(a) Methods for assigning compliance obligations and methods for tracking tradable credits. The department may assign the generation of a credit when a fuel with associated life-cycle greenhouse gas emissions that are lower than the applicable per-unit standard adopted by the department under RCW 70A.535.025 is produced, imported, or dispensed for use in Washington, or when specified activities are undertaken that support the reduction of greenhouse gas emissions associated with transportation in Washington;
(b) Mechanisms that allow credits to be traded and to be banked for future compliance periods; and
(c) Procedures for verifying the validity of credits and deficits generated under the clean fuels program;
(4) Mechanisms to elect to participate in the clean fuels program for persons associated with the supply chains of transportation fuels that are eligible to generate credits consistent with subsection (3) of this section, including producers, importers, distributors, users, or retailers of such fuels, and electric vehicle manufacturers;
(5) Mechanisms for persons associated with the supply chains of transportation fuels that are used for purposes that are exempt from the clean fuels program compliance obligations including, but not limited to, fuels used by aircraft, vessels, railroad locomotives, and other exempt fuels specified in RCW 70A.535.040, to elect to participate in the clean fuels program by earning credits for the production, import, distribution, use, or retail of exempt fuels with associated life-cycle greenhouse gas emissions lower than the per-unit standard established in RCW 70A.535.025;
(6) Mechanisms that allow for the assignment of credits to an electric utility for electricity used within its utility service area, at minimum, for residential electric vehicle charging or fueling;
(7) Cost containment mechanisms.
(a) Cost containment mechanisms must include the credit clearance market specified in subsection (8) of this section and may also include, but are not limited to:
(i) Procedures similar to the credit clearance market required in subsection (8) of this section that provide a means of compliance with the clean fuels program requirements in the event that a regulated person has not been able to acquire sufficient volumes of credits at the end of a compliance period; or
(ii) Similar procedures that ensure that credit prices do not significantly exceed credit prices in other jurisdictions that have adopted similar programs to reduce the carbon intensity of transportation fuels.
(b) Any cost containment mechanisms must be designed to provide financial disincentive for regulated persons to rely on the cost containment mechanism for purposes of program compliance instead of seeking to generate or acquire sufficient credits under the program.
(c) The department shall harmonize the program's cost containment mechanisms with the cost containment rules in the states specified in RCW 70A.535.060(1).
(d) The department shall consider mechanisms such as the establishment of a credit price cap or other alternative cost containment measures if deemed necessary to harmonize market credit costs with those in the states specified in RCW 70A.535.060(1);
(8)(a)(i) A credit clearance market for any compliance period in which at least one regulated party reports that the regulated party has a net deficit balance at the end of the compliance period, after retirement of all credits held by the regulated party, that is greater than a small deficit. A regulated party described by this subsection is required to participate in the credit clearance market.
(ii) If a regulated party has a small deficit at the end of a compliance period, the regulated party shall notify the department that it will achieve compliance with the clean fuels program during the compliance period by either: (A) Participating in a credit clearance market; or (B) carrying forward the small deficit.
(b) For the purposes of administering a credit clearance market required by this section, the department shall:
(i) Allow any regulated party, credit generator, or credit aggregator that holds excess credits at the end of the compliance period to voluntarily participate in the credit clearance market as a seller by pledging a specified number of credits for sale in the market;
(ii) Require each regulated party participating in the credit clearance market as purchaser of credits to:
(A) Have retired all credits in the regulated party's possession prior to participating in the credit clearance market; and
(B) Purchase the specified number of the total pledged credits that the department has determined are that regulated party's pro rata share of the pledged credits;
(iii) Require all sellers to:
(A) Agree to sell pledged credits at a price no higher than a maximum price for credits;
(B) Accept all offers to purchase pledged credits at the maximum price for credits; and
(C) Agree to withhold any pledged credits from sale in any transaction outside of the credit clearance market until the end of the credit clearance market, or if no credit clearance market is held in a given year, then until the date on which the department announces it will not be held.
(c)(i) The department shall set a maximum price for credits in a credit clearance market, consistent with states that have adopted similar clean fuels programs, not to exceed $200 in 2018 dollars for 2023.
(ii) For 2024 and subsequent years, the maximum price may exceed $200 in 2018 dollars, but only to the extent that a greater maximum price for credits is necessary to annually adjust for inflation, beginning on January 1, 2024, pursuant to the increase, if any, from the preceding calendar year in the consumer price index for all urban consumers, west region (all items), as published by the bureau of labor statistics of the United States department of labor.
(d) A regulated party that has a net deficit balance after the close of a credit clearance market:
(i) Must carry over the remaining deficits into the next compliance period; and
(ii) May not be subject to interest greater than five percent, penalties, or assertions of noncompliance that accrue based on the carryover of deficits under this subsection.
(e) If a regulated party has been required under (a) of this subsection to participate as a purchaser in two consecutive credit clearance markets and continues to have a net deficit balance after the close of the second consecutive credit clearance market, the department shall complete, no later than two months after the close of the second credit clearance market, an analysis of the root cause of an inability of the regulated party to retire the remaining deficits. The department may recommend and implement any remedy that the department determines is necessary to address the root cause identified in the analysis including, but not limited to, issuing a deferral, provided that the remedy implemented does not:
(i) Require a regulated party to purchase credits for an amount that exceeds the maximum price for credits in the most recent credit clearance market; or
(ii) Compel a person to sell credits.
(f) If credits sold in a credit clearance market are subsequently invalidated as a result of fraud or any other form of noncompliance on the part of the generator of the credit, the department may not pursue civil penalties against, or require credit replacement by, the regulated party that purchased the credits unless the regulated party was a party to the fraud or other form of noncompliance.
(g) The department may not disclose the deficit balances or pro rata share purchase requirements of a regulated party that participates in the credit clearance market;
(9) Authority for the department to designate an entity to aggregate and use unclaimed credits associated with persons that elect not to participate in the clean fuels program under subsection (4) of this section.
[ 2022 c 182 s 410; 2021 c 317 s 4.]
Notes:
*Reviser's note: RCW 70A.15.2200 was amended by 2021 c 316 s 33, deleting subsection (5)(a)(iii) entirely.
Effective date—2022 c 182 ss 313, 408-414, and 421: See note following RCW 82.21.030.
Intent—2022 c 182: See note following RCW 70A.65.240.
Severability—2021 c 317: See note following RCW 70A.535.005.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Requirements for rules adopted under RCW 70A.535.025.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 70A.535.040

text:
(1) The rules adopted under RCW 70A.535.030 and 70A.535.025 must include exemptions for, at minimum, the following transportation fuels:
(a) Fuels used in volumes below thresholds adopted by the department;
(b) Fuels used for the propulsion of all aircraft, vessels, and railroad locomotives; and
(c) Fuels used for the operation of military tactical vehicles and tactical support equipment.
(2)(a) The rules adopted under RCW 70A.535.030 and 70A.535.025 must exempt the following transportation fuels from greenhouse gas emissions intensity reduction requirements until January 1, 2028:
(i) Special fuel used off-road in vehicles used primarily to transport logs;
(ii) Dyed special fuel used in vehicles that are not designed primarily to transport persons or property, that are not designed to be primarily operated on highways, and that are used primarily for construction work including, but not limited to, mining and timber harvest operations; and
(iii) Dyed special fuel used for agricultural purposes exempt from chapter 82.38 RCW.
(b) Prior to January 1, 2028, fuels identified in this subsection (2) are eligible to generate credits, consistent with subsection (5) of this section. Beginning January 1, 2028, the fuels identified in this subsection (2) are subject to the greenhouse gas emissions intensity reduction requirements applicable to transportation fuels specified in RCW 70A.535.025.
(3) The department may adopt rules to specify the standards for persons to qualify for the exemptions provided in this section. The department may implement the exemptions under subsection (2) of this section to align with the implementation of exemptions for similar fuels exempt from chapter 82.38 RCW.
(4) The rules adopted under RCW 70A.535.030 and 70A.535.025 may include exemptions in addition to those described in subsections (1) and (2) of this section, but only if such exemptions are necessary, with respect to the relationship between the program and similar greenhouse gas emissions requirements or low carbon fuel standards, in order to avoid:
(a) Mismatched incentives across programs;
(b) Fuel shifting between markets; or
(c) Other results that are counter to the intent of this chapter.
(5) Nothing in this chapter precludes the department from adopting rules under RCW 70A.535.030 and 70A.535.025 that allow the generation of credits associated with electric or alternative transportation infrastructure that existed prior to July 25, 2021, or to the start date of program requirements. The department must apply the same baseline years to credits associated with electric or alternative transportation infrastructure that apply to gasoline and diesel liquid fuels in any market-based program enacted by the legislature that establishes a cap on greenhouse gas emissions.
[ 2022 c 182 s 411; 2021 c 317 s 5.]
Notes:
Effective date—2022 c 182 ss 313, 408-414, and 421: See note following RCW 82.21.030.
Intent—2022 c 182: See note following RCW 70A.65.240.
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Rules adopted under RCW 70A.535.025 and 70A.535.030—Exemptions for certain transportation fuels.


title: RCW 70A.535.050

text:
(1) The rules adopted under RCW 70A.535.030 and 70A.535.025 may allow the generation of credits from activities that support the reduction of greenhouse gas emissions associated with transportation in Washington, including but not limited to:
(a) Carbon capture and sequestration projects, including but not limited to:
(i) Innovative crude oil production projects that include carbon capture and sequestration;
(ii) Project-based refinery greenhouse gas mitigation including, but not limited to, process improvements, renewable hydrogen use, and carbon capture and sequestration; or
(iii) Direct air capture projects;
(b) Investments and activities that support deployment of machinery and equipment used to produce gaseous and liquid fuels from nonfossil feedstocks, and derivatives thereof;
(c) The fueling of battery or fuel cell electric vehicles by a commercial, nonprofit, or public entity that is not an electric utility, which may include, but is not limited to, the fueling of vehicles using electricity certified by the department to have a carbon intensity of zero; and
(d) The use of smart vehicle charging technology that results in the fueling of an electric vehicle during times when the carbon intensity of grid electricity is comparatively low.
(2)(a) The rules adopted under RCW 70A.535.030 and 70A.535.025 must allow the generation of credits based on capacity for zero emission vehicle refueling infrastructure, including DC fast charging infrastructure and hydrogen refueling infrastructure.
(b) The rules adopted under RCW 70A.535.030 and 70A.535.025 may allow the generation of credits from the provision of low carbon fuel infrastructure not specified in (a) of this subsection.
(3) The rules adopted under RCW 70A.535.030 and 70A.535.025 must allow the generation of credits from state transportation investments funded in an omnibus transportation appropriations act for activities and projects that reduce greenhouse gas emissions and decarbonize the transportation sector. These include, but are not limited to: (a) Electrical grid and hydrogen fueling infrastructure investments; (b) ferry operating and capital investments; (c) electrification of the state ferry fleet; (d) alternative fuel vehicle rebate programs; (e) transit grants; (f) infrastructure and other costs associated with the adoption of alternative fuel use by transit agencies; (g) bike and pedestrian grant programs and other activities; (h) complete streets and safe walking grants and allocations; (i) rail funding; and (j) multimodal investments.
(4) The rules adopted by the department may establish limits for the number of credits that may be earned each year by persons participating in the program for some or all of the activities specified in subsections (1) and (2) of this section. The department must limit the number of credits that may be earned each year under subsection (3) of this section to 10 percent of the total program credits. Any limits established under this subsection must take into consideration the return on investment required in order for an activity specified in subsection (2) of this section to be financially viable.
(5)(a) In coordination with the department, the Washington state department of transportation must immediately begin work on identifying the amount of credit revenues likely to be generated under subsection (3) of this section from the state transportation investments funded in an omnibus transportation appropriations act, including the move ahead WA transportation package. It is the intent of the legislature that these credits will be maximized to allow further investment in efforts to reduce greenhouse gas emissions and decarbonize the transportation sector including, but not limited to, additional funding in future years, for ferry electrification beyond four new hybrid electric vessels, active transportation, and transit programs and projects.
(b) Beginning November 1, 2022, and annually thereafter, the Washington state department of transportation must present a detailed projection of the credit revenues generated under subsection (3) of this section and a preferred reinvestment strategy for the revenues for the following 10-year time period to the joint transportation committee.
[ 2022 c 182 s 412; 2021 c 317 s 6.]
Notes:
Effective date—2022 c 182 ss 313, 408-414, and 421: See note following RCW 82.21.030.
Intent—2022 c 182: See note following RCW 70A.65.240.
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Rules adopted under RCW 70A.535.025 and 70A.535.030—Generation of credits.


title: RCW 70A.535.060

text:
(1) Except where otherwise provided in this chapter, the department shall seek to adopt rules that are harmonized with the regulatory standards, exemptions, reporting obligations, rule updates, and other clean fuels program compliance requirements and methods for credit generation of other states that:
(a) Have adopted low carbon fuel standards or similar greenhouse gas emissions requirements applicable specifically to transportation fuels; and
(b)(i) Supply, or have the potential to supply, significant quantities of transportation fuel to Washington markets; or
(ii) To which Washington supplies, or has the potential to supply, significant quantities of transportation fuel.
(2) The department must establish and periodically consult a stakeholder advisory panel, including representatives of forestland and agricultural landowners, for purposes of soliciting input on how to best incentivize and allot credits for the sequestration of greenhouse gases through activities on agricultural and forestlands in a manner that is consistent with the goals and requirements of this chapter.
(3) The department must conduct a biennial review of innovative technologies and pathways that reduce carbon and increase credit generation opportunities and must modify rules or guidance as needed to maintain stable credit markets.
(4) In any reports to the legislature under RCW 70A.535.090, on the department's website, or in other public documents or communications that refer to assumed public health benefits associated with the program created in this chapter, the department must distinguish between public health benefits from small particulate matter and other conventional pollutant reductions achieved primarily as a result of vehicle emission standards established under chapter 70A.30 RCW, and the incremental benefits to air pollution attributable to the program created under this chapter.
[ 2025 c 319 s 2; 2021 c 317 s 7.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Adoption of rules—Harmonization with other states—Stakeholder advisory panel—Review of innovative technologies—Report requirements.


title: RCW 70A.535.070

text:
(1)(a) Each producer or importer of any amount of a transportation fuel that is ineligible to generate credits consistent with the requirements of RCW 70A.535.030(3) must register with the department.
(b) Electric vehicle manufacturers and producers, importers, distributors, users, and retailers of transportation fuels that are eligible to generate credits consistent with RCW 70A.535.030(3) must register with the department if they elect to participate in the clean fuels program.
(c) Other persons must register with the department to generate credits from other activities that support the reduction of greenhouse gas emissions associated with transportation in Washington.
(2) Each transaction transferring ownership of transportation fuels for which clean fuels program participation is mandated must be accompanied by documentation, in a format approved by the department, that assigns the clean fuels program compliance responsibility associated with the fuels, including the assignment of associated credits. The department may also require documentation assigning clean fuels program compliance responsibility associated with fuels for which program participation has been elected.
(3) The department may adopt rules requiring the periodic reporting of information to the department by persons associated with the supply chains of transportation fuels participating in the clean fuels program. To the extent practicable, the rules must establish reporting procedures and timelines that are consistent with similar programs in other states that reduce the greenhouse gas emission intensity of transportation fuel and with procedures and timelines of state programs requiring similar information to be reported by regulated parties, including electric utilities.
(4) RCW 70A.15.2510 applies to records or information submitted to the department under this chapter.
[ 2021 c 317 s 8.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Producers or importers must register with the department—Transfer of ownership of transportation fuels—Documentation—Reporting of information—Adoption of rules.


title: RCW 70A.535.080

text:
(1)(a) Fifty percent of the revenues generated by an electric utility from credits earned from the electricity supplied to retail customers by an electric utility under the clean fuels program must be expended by the electric utility on transportation electrification projects, which may include projects to support the production and provision of hydrogen and other gaseous fuels produced from nonfossil feedstocks, and derivatives thereof as a transportation fuel.
(b) Sixty percent of the revenues described in (a) of this subsection, or 30 percent of the revenues generated by an electric utility from credits earned from the electricity supplied to retail customers by an electric utility under the clean fuels program, must be expended by the electric utility on transportation electrification projects, which may include projects to support the production and provision of hydrogen and other gaseous fuels produced from nonfossil feedstocks, and derivatives thereof as a transportation fuel, located within or directly benefiting a federally designated nonattainment or maintenance area, a federally designated nonattainment or maintenance area that existed as of January 1, 2021, a disproportionately impacted community identified by the department of health, or an area designated by the department as being at risk of nonattainment, if such a nonattainment or maintenance area or disproportionately impacted community is within the service area of the utility.
(2)(a) Each electric utility must spend 50 percent of revenues not subject to the requirements of subsection (1) of this section on one or more transportation electrification programs or projects it selects from a list of types of programs and projects jointly developed by the department and the Washington state department of transportation. The department and the Washington state department of transportation must develop the list based on those with the highest impact on reducing greenhouse gas emissions and decarbonizing the transportation sector. The types of transportation electrification projects or programs placed on the list must include, but are not limited to:
(i) Provision of new or used zero emissions vehicles at no cost or at a discount to nonprofit service providers, transit agencies, or public fleets for the purpose of providing transportation services for low-income or vulnerable populations or to reduce transportation costs for the nonprofits, transit agencies, or public fleets serving low-income or vulnerable populations;
(ii) Construction, operation, or maintenance of, or funding for charging infrastructure, including smart charging infrastructure, or hydrogen fueling infrastructure;
(iii) Expanding grid capacity to enable transportation electrification investments directly associated with expenditures permitted by this chapter; and
(iv) Partnership programs with public and private vehicle fleet owners to enable increased electrification of transportation.
(b) Under (a) of this subsection, electric utilities should consider programs or projects that expand low and moderate-income customer access to zero emissions transportation, when prioritizing program expenditures.
(3) Electric utilities that participate in the clean fuels program must annually provide information to the department accounting for and briefly describing all expenditures of revenues generated from credits earned under the clean fuels program.
[ 2021 c 317 s 9.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Electric utilities—Use of certain revenues—Provision of information to the department.


title: RCW 70A.535.090

text:
(1) Beginning May 1, 2025, and each May 1st thereafter, the department must post a report on the department's website that includes the following information regarding the previous calendar year of clean fuels program activities:
(a) The program-wide number of credits and deficits generated by entities participating in the clean fuels program;
(b) The volumes of each transportation fuel and average price per credit used to comply with the requirements of the clean fuels program;
(c) The best estimate or range in probable costs or cost savings attributable to the clean fuels program per gallon of gasoline and per gallon of diesel, as determined by an independent consultant whose services the department has contracted. The estimate or range in probable costs or cost savings from the independent consultant must be announced in a press release to the news media at the time that the report under this subsection (1) is posted to the department's website, and must be simultaneously reported to the transportation committees of the house of representatives and the senate;
(d) The total greenhouse gas emissions reductions attributable to the clean fuels program isolated from the greenhouse gas emissions reductions attributable to other state and national programs on the same fuels; and
(e) The range in the probable cost per ton of greenhouse gas emissions reductions attributable to fuels supported by the clean fuels program, taking into account the information in (c) and (d) of this subsection.
(2) Nothing in this section prohibits the department from posting information described in subsection (1) of this section on a more frequent basis than once per year.
(3) By May 1, 2025, and each May 1st thereafter, the department must submit the report required under subsection (1) of this section to the appropriate committees of the house of representatives and senate.
(4) The department must contract for a one-time ex ante independent analysis of the information specified in subsection (1)(c) of this section covering each year of the program through 2038. The analysis must be informed by input from stakeholders, including regulated industries, and informed by experience from other jurisdictions. The analysis must impute price impacts using multiple analytical methodologies and must make clear how the assumptions or factors considered differed in each methodology used and price impact imputed. The analysis required in this subsection must be completed and submitted to the appropriate committees of the legislature by July 1, 2022.
[ 2021 c 317 s 10.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Reporting requirements—Report to the legislature—Independent analysis.


title: RCW 70A.535.100

text:
(1) In consultation with the department, the utilities and transportation commission, and the department of agriculture, the department of commerce must develop a periodic fuel supply forecast to project the availability of fuels to Washington necessary for compliance with clean fuels program requirements.
(2) Based upon the estimates in subsection (3) of this section, the fuel supply forecast must include a prediction by the department of commerce regarding whether sufficient credits will be available to comply with clean fuels program requirements.
(3) The fuel supply forecast for each upcoming compliance period must include, but is not limited to, the following:
(a) An estimate of the potential volumes of gasoline, gasoline substitutes, and gasoline alternatives, and diesel, diesel substitutes, and diesel alternatives available to Washington. In developing this estimate, the department of commerce must consider, but is not limited to considering:
(i) The existing and future vehicle fleet in Washington; and
(ii) Any constraints that might be preventing access to available and cost-effective low carbon fuels by Washington, such as geographic and logistical factors, and alleviating factors to the constraints;
(b) An estimate of the total banked credits and carried over deficits held by regulated parties, credit generators, and credit aggregators at the beginning of the compliance period, and an estimate of the total credits attributable to fuels described in (a) of this subsection;
(c) An estimate of the number of credits needed to meet the applicable clean fuels program requirements during the forecasted compliance period; and
(d) A comparison in the estimates of (a) and (b) of this subsection with the estimate in (c) of this subsection, for the purpose of indicating the availability of fuels and banked credits needed for compliance with the requirements of this chapter.
(4) The department of commerce, in coordination with the department, may appoint a forecast review team of relevant experts to participate in the fuel supply forecast or examination of data required by this section. The department of commerce must finalize a fuel supply forecast for an upcoming compliance period by no later than 90 days prior to the start of the compliance period.
[ 2021 c 317 s 11.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Fuel supply forecast.


title: RCW 70A.535.110

text:
(1) No later than 30 calendar days before the commencement of a compliance period, the department shall issue an order declaring a forecast deferral if the fuel supply forecast under RCW 70A.535.100 projects that the amount of credits that will be available during the forecast compliance period will be less than 100 percent of the credits projected to be necessary for regulated parties to comply with the scheduled applicable clean fuels program standard adopted by the department for the forecast compliance period.
(2) An order declaring a forecast deferral under this section must set forth:
(a) The duration of the forecast deferral;
(b) The types of fuel to which the forecast deferral applies; and
(c) Which of the following methods the department has selected for deferring compliance with the scheduled applicable clean fuels program standard during the forecast deferral:
(i) Temporarily adjusting the scheduled applicable clean fuels program standard to a standard identified in the order that better reflects the forecast availability of credits during the forecast compliance period and requiring regulated parties to comply with the temporary standard;
(ii) Requiring regulated parties to comply only with the clean fuels program standard applicable during the compliance period prior to the forecast compliance period; or
(iii) Suspending deficit accrual for part or all of the forecast deferral period.
(3)(a) In implementing a forecast deferral, the department may take an action for deferring compliance with the clean fuels program standard other than, or in addition to, selecting a method under subsection (2)(c) of this section only if the department determines that none of the methods under subsection (2)(c) of this section will provide a sufficient mechanism for containing the costs of compliance with the clean fuels program standards during the forecast deferral.
(b) If the department makes the determination specified in (a) of this subsection, the department shall:
(i) Include in the order declaring a forecast deferral the determination and the action to be taken; and
(ii) Provide written notification and justification of the determination and the action to:
(A) The governor;
(B) The president of the senate;
(C) The speaker of the house of representatives;
(D) The majority and minority leaders of the senate; and
(E) The majority and minority leaders of the house of representatives.
(4) The duration of a forecast deferral may not be less than one calendar quarter or longer than one compliance period. Only the department may terminate, by order, a forecast deferral before the expiration date of the forecast deferral. Termination of a forecast deferral is effective on the first day of the next calendar quarter after the date that the order declaring the termination is adopted.
[ 2021 c 317 s 12.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Forecast deferral.


title: RCW 70A.535.120

text:
(1) The director of the department may issue an order declaring an emergency deferral of compliance with the carbon intensity standard established under RCW 70A.535.025 no later than 15 calendar days after the date the department determines, in consultation with the governor's office and the department of commerce, that:
(a) Extreme and unusual circumstances exist that prevent the distribution of an adequate supply of renewable fuels needed for regulated parties to comply with the clean fuels program taking into consideration all available methods of obtaining sufficient credits to comply with the standard;
(b) The extreme and unusual circumstances are the result of a natural disaster, an act of God, a significant supply chain disruption or production facility equipment failure, or another event that could not reasonably have been foreseen or prevented and not the lack of prudent planning on the part of the suppliers of the fuels to the state; and
(c) It is in the public interest to grant the deferral such as when a deferral is necessary to meet projected temporary shortfalls in the supply of the renewable fuel in the state and that other methods of obtaining compliance credits are unavailable to compensate for the shortage of renewable fuel supply.
(2) If the director of the department makes the determination required under subsection (1) of this section, such a temporary extreme and unusual deferral is permitted only if:
(a) The deferral applies only for the shortest time necessary to address the extreme and unusual circumstances;
(b) The deferral is effective for the shortest practicable time period the director of the department determines necessary to permit the correction of the extreme and unusual circumstances; and
(c) The director has given public notice of a proposed deferral.
(3) An order declaring an emergency deferral under this section must set forth:
(a) The duration of the emergency deferral;
(b) The types of fuel to which the emergency deferral applies;
(c) Which of the following methods the department has selected for deferring compliance with the clean fuels program during the emergency deferral:
(i) Temporarily adjusting the scheduled applicable carbon intensity standard to a standard identified in the order that better reflects the availability of credits during the emergency deferral and requiring regulated parties to comply with the temporary standard;
(ii) Allowing for the carryover of deficits accrued during the emergency deferral into the next compliance period without penalty; or
(iii) Suspending deficit accrual during the emergency deferral period.
(4) An emergency deferral may be terminated prior to the expiration date of the emergency deferral if new information becomes available indicating that the shortage that provided the basis for the emergency deferral has ended. The director of the department shall consult with the department of commerce and the governor's office in making an early termination decision. Termination of an emergency deferral is effective 15 calendar days after the date that the order declaring the termination is adopted.
(5)(a) In addition to the emergency deferral specified in subsection (1) of this section, the department may issue a full or partial deferral for one calendar quarter of a person's obligation to furnish credits for compliance under RCW 70A.535.030 if it finds that the person is unable to comply with the requirements of this chapter due to reasons beyond the person's reasonable control. The department may initiate a deferral under this subsection at its own discretion or at the request of a person regulated under this chapter. The department may renew issued deferrals. In evaluating whether to issue a deferral under this subsection, the department may consider the results of the fuel supply forecast in RCW 70A.535.100, but is not bound in its decision-making discretion by the results of the forecast.
(b) If the department issues a deferral pursuant to this subsection, the department may:
(i) Direct the person subject to the deferral to file a progress report on achieving full compliance with the requirements of this chapter within an amount of time determined to be reasonable by the department; and
(ii) Direct the person to take specific actions to achieve full compliance with the requirements of this chapter.
(c) The issuance of a deferral under this subsection does not permanently relieve the deferral recipient of the obligation to comply with the requirements of this chapter.
[ 2022 c 182 s 413; 2021 c 317 s 13.]
Notes:
Effective date—2022 c 182 ss 313, 408-414, and 421: See note following RCW 82.21.030.
Intent—2022 c 182: See note following RCW 70A.65.240.
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Emergency deferral of compliance with carbon intensity standard.


title: RCW 70A.535.130

text:
(1) The department may require that persons that are required or elect to register or report under this chapter pay a fee. If the department elects to require program participants to pay a fee, the department must, after an opportunity for public review and comment, adopt rules to establish a process to determine the payment schedule and the amount of the fee charged. The amount of the fee must be set so as to equal but not exceed the projected direct and indirect costs to the department for developing and implementing the program and the projected direct and indirect costs to the department of commerce to carry out its responsibilities under RCW 70A.535.100. The department and the department of commerce must prepare a biennial workload analysis and provide an opportunity for public review of and comment on the workload analysis. The department shall enter into an interagency agreement with the department of commerce to implement this section.
(2) The clean fuels program account is created in the state treasury. All receipts from fees received under the program created in this chapter must be deposited into the account. Moneys in the account may be spent only after appropriation. The department may only use expenditures from the account for carrying out the program created in this chapter.
(3) All rule making authorized under chapter 317, Laws of 2021 must be conducted according to the standards for significant legislative rules provided in RCW 34.05.328.
[ 2025 c 319 s 9; 2021 c 317 s 14.]
Notes:
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Fee—Clean fuels program account—Rule making to be conducted as provided in RCW 34.05.328.


title: RCW 70A.535.140

text:
(1) By December 1, 2030, the joint legislative audit and review committee must analyze the impacts of the initial five years of clean fuels program implementation and must submit a report summarizing the analysis to the legislature. The analysis must include, at minimum, the following components:
(a) Costs and benefits, including environmental and public health costs and benefits, associated with this chapter for categories of persons participating in the clean fuels program or that are most impacted by air pollution, as defined in consultation with the departments of ecology and health and as measured on a census tract scale. This component of the analysis must, at minimum, assess the costs and benefits of changes in the following metrics since the start of the program:
(i) Levels of greenhouse gas emissions and criteria air pollutants for which the United States environmental protection agency has established national ambient air quality standards;
(ii) Fuel prices; and
(iii) Total employment in categories of industries generating credits or deficits. The categories of industries assessed must include but are not limited to electric utilities, oil refineries, and other industries involved in the production of high carbon fuels, industries involved in the delivery and sale of high carbon fuels, biofuel refineries, and industries involved in the delivery and sale of low carbon fuels;
(b) An evaluation of the information calculated and provided by the department under RCW 70A.535.090(1);
(c) A summary of the estimated total statewide costs and benefits attributable to the clean fuels program, including state agency administrative costs and regulated entity compliance costs. For purposes of calculating the benefits of the program, the summary may rely, in part, on a constant value of the social costs attributable to greenhouse gas emissions, as identified in contemporary internationally accepted estimates of such global social cost. This summary must include an estimate of the total statewide costs of the program per ton of greenhouse gas emissions reductions achieved by the clean fuels program;
(d) An evaluation of the impacts of the program on low-income households; and
(e) The outcomes of proposals to site biofuel facilities through the energy facility site evaluation council review process that is allowed by *RCW 80.50.060(2).
(2) This section expires June 30, 2030.
[ 2021 c 317 s 15.]
Notes:
*Reviser's note: RCW 80.50.060 was amended by 2022 c 183 s 6, deleting subsection (2).
Severability—2021 c 317: See note following RCW 70A.535.005.

catchline: Joint legislative audit and review committee analysis. (Expires June 30, 2030.)


title: RCW 70A.535.150

text:
(1) By no later than December 31, 2023, the department must allow one or more carbon intensity pathways for alternative jet fuel.
(2) The department must allow biomethane to be claimed as the feedstock for renewable diesel and alternative jet fuel consistent with that allowable for compressed natural gas, liquefied natural gas, liquefied compressed natural gas, or hydrogen production. The department must include in the report required by RCW 70A.535.090(1) information that includes the amount, generation date, and geographic origin of renewable thermal certificates representing the biomethane environmental attributes claimed by each reporting entity for the fuels described in this subsection.
(3) The department must notify the department of revenue within 30 days when one or more facilities capable of producing a cumulative production capacity of at least 20,000,000 gallons of alternative jet fuel each year are operating in this state.
[ 2023 c 232 s 3.]
Notes:
Effective date—2023 c 232 ss 1-7: See note following RCW 70A.535.010.
Automatic expiration date exemption—2023 c 232: See note following RCW 82.04.287.
Intent—2023 c 232: See note following RCW 70A.535.010.

catchline: Alternative jet fuel.


title: RCW 70A.535.160

text:
The clean fuels transportation investment account is created in the state treasury. All receipts to the state from clean fuel credits generated under this chapter from transportation investments funded in an omnibus transportation appropriations act, including those listed under RCW 70A.535.050(3), must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may only be used for activities and projects that reduce greenhouse gas emissions and decarbonize the transportation sector.
[ 2024 c 168 s 7; 2023 c 431 s 14.]
Notes:
Effective dates—2024 c 168 ss 4-13: See note following RCW 41.05.155.
Intent—2023 c 431: See note following RCW 46.17.015.

catchline: Clean fuels transportation investment account.


title: RCW 70A.535.170

text:
The clean fuels credit account is created in the state treasury. All receipts from clean fuel credits generated under this chapter by state agency activities not funded through an appropriation in an omnibus transportation appropriations act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for state agencies to complete investments to reduce state agency transportation-related emissions including, but not limited to, electric vehicle infrastructure, electric vehicles, electric vessels, and electric boats.
[ 2024 c 168 s 6.]
Notes:
Effective dates—2024 c 168 ss 4-13: See note following RCW 41.05.155.

catchline: Clean fuels credit account.


title: RCW 70A.535.180

text:
(1)(a) All regulated parties and credit generators are required to submit reports under RCW 70A.535.070 in a timely manner to meet the entities' compliance obligations and shall comply with all requirements for recordkeeping, reporting, transacting credits, obtaining a carbon intensity calculation, and other provisions of this chapter.
(b) The department may issue a corrective action order to a person that does not comply with a requirement of this chapter.
(2) Each deficit for which a registered party does not retire a corresponding credit at the end of a compliance period constitutes a separate violation of this chapter unless that registered party participates in the credit clearance market as required under RCW 70A.535.030(8). For each violation, the department may issue a penalty of up to four times the maximum posted price of the most recent credit clearance market.
(3) The department may issue a penalty for any misreporting by a party that results in the claim of credits that does not meet the requirements of this chapter or the failure to report a deficit. The penalty issued under this subsection may be up to $1,000 per credit or deficit in violation of the requirements of this chapter. A registered party may not be penalized under this subsection if any misreporting in a quarterly report is corrected by the end of that quarter's reporting period.
(4) The department may issue a penalty of up to $10,000 per day each day a registered party does not submit a report under RCW 70A.535.070 by the reporting deadline.
(5) The department may issue a penalty for credits generated in exceedance of a carbon intensity standard adopted by the department for that year of up to $1,000 per credit for each illegitimate credit generated as a result of the incorrect carbon intensity score.
(6) The department may issue a penalty of up to $25,000 per month that a regulated party is not registered with the department in violation of RCW 70A.535.070.
(7) The department may issue to any participating electric utility a penalty of up to four times the credit revenue improperly spent in violation of RCW 70A.535.080 or rules adopted to implement that section.
(8) The department may issue a penalty of up to $50,000 or $10,000 per day for a violation of the third-party verification requirements adopted by the department under RCW 70A.535.030(3)(c) for as long as the registered party remains out of compliance with these requirements. However, the department shall not issue a penalty to a registered party for a violation of third-party verification requirements that the registered party demonstrates to the department was due to an error made by the third-party verifier.
(9) For violations other than those described in subsections (2) through (8) of this section, the department may issue a penalty of up to $10,000 per day per violation for each day any registered party violates the terms of this chapter or an order issued under this chapter.
(10) An electric utility must notify its retail customers in published form within three months of paying a monetary penalty under this section.
(11) Penalties and orders issued under this section may be appealed to the pollution control hearings board created in chapter 43.21B RCW. Penalties collected under this chapter must be deposited in the carbon emissions reduction account created in RCW 70A.65.240.
[ 2025 c 319 s 3.]
PDF
RCW 70A.535.180
Compliance obligations—Reports—Violations—Penalties. (Effective July 1, 2027.)
(1)(a) All regulated parties and credit generators are required to submit reports under RCW 70A.535.070 in a timely manner to meet the entities' compliance obligations and shall comply with all requirements for recordkeeping, reporting, transacting credits, obtaining a carbon intensity calculation, and other provisions of this chapter.
(b) The department may issue a corrective action order to a person that does not comply with a requirement of this chapter.
(2) Each deficit for which a registered party does not retire a corresponding credit at the end of a compliance period constitutes a separate violation of this chapter unless that registered party participates in the credit clearance market as required under RCW 70A.535.030(8). For each violation, the department may issue a penalty of up to four times the maximum posted price of the most recent credit clearance market.
(3) The department may issue a penalty for any misreporting by a party that results in the claim of credits that does not meet the requirements of this chapter or the failure to report a deficit. The penalty issued under this subsection may be up to $1,000 per credit or deficit in violation of the requirements of this chapter. A registered party may not be penalized under this subsection if any misreporting in a quarterly report is corrected by the end of that quarter's reporting period.
(4) The department may issue a penalty of up to $10,000 per day each day a registered party does not submit a report under RCW 70A.535.070 by the reporting deadline.
(5) The department may issue a penalty for credits generated in exceedance of a carbon intensity standard adopted by the department for that year of up to $1,000 per credit for each illegitimate credit generated as a result of the incorrect carbon intensity score.
(6) The department may issue a penalty of up to $25,000 per month that a regulated party is not registered with the department in violation of RCW 70A.535.070.
(7) The department may issue to any participating electric utility a penalty of up to four times the credit revenue improperly spent in violation of RCW 70A.535.080 or rules adopted to implement that section.
(8) The department may issue a penalty of up to $50,000 or $10,000 per day for a violation of the third-party verification requirements adopted by the department under RCW 70A.535.030(3)(c) for as long as the registered party remains out of compliance with these requirements. However, the department shall not issue a penalty to a registered party for a violation of third-party verification requirements that the registered party demonstrates to the department was due to an error made by the third-party verifier.
(9) For violations other than those described in subsections (2) through (8) of this section, the department may issue a penalty of up to $10,000 per day per violation for each day any registered party violates the terms of this chapter or an order issued under this chapter.
(10) An electric utility must notify its retail customers in published form within three months of paying a monetary penalty under this section.
(11) Penalties and orders issued under this section may be appealed to the pollution control hearings board created in chapter 43.21B RCW. Penalties collected under this chapter must be deposited in the climate commitment act transportation account created in RCW 70A.65.240.
[ 2026 c 219 s 18; 2025 c 319 s 3.]
Notes:
Effective date—2026 c 219: See note following RCW 70A.65.410.

catchline: Compliance obligations—Reports—Violations—Penalties. (Effective until July 1, 2027.)


title: RCW 70A.535.190

text:
(1) The department shall publish on its website analysis and forecasts of the credit markets created by this chapter, including:
(a) The prices of credits in Washington and the price of credits as compared to other jurisdictions implementing similar clean fuels policies;
(b) Trends in credit supply and demand;
(c) Activities in the credit markets, including volume of credits transferred and price per credit, categorized by fuel type;
(d) The share of deficits generated by fuel type, and the share of credits generated by fuel type; and
(e) Trends in in-state biofuel feedstock production types and volumes.
(2) The department must consider the analysis in subsection (1) of this section in adopting rules to implement the requirements of this chapter.
[ 2025 c 319 s 4.]

catchline: Department duty to publish—Analysis—Forecasts.


title: RCW 70A.540.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Active municipal solid waste landfill" means a municipal solid waste landfill that has accepted or is accepting solid waste for disposal and has not been closed in accordance with the requirements set forth in WAC 173-351-500 as it existed on January 10, 2022.
(2) "Air pollution" is presence in the outdoor atmosphere of one or more air contaminants in sufficient quantities and of such characteristics and duration as is, or is likely to be, injurious to human health, plant or animal life, or property, or which unreasonably interfere with enjoyment of life and property. For the purpose of this chapter, air pollution does not include air contaminants emitted in compliance with chapter 17.21 RCW.
(3) "Ambient air" means the surrounding outside air.
(4) "Authority" means any air pollution control agency whose jurisdictional boundaries are coextensive with the boundaries of one or more counties.
(5) "Closed municipal solid waste landfill" means a municipal solid waste landfill that is no longer accepting solid waste for disposal and has been closed in accordance with the requirements set forth in WAC 173-351-500 as it existed on January 10, 2022.
(6) "Department" means the department of ecology.
(7) "Emission" means a release of air contaminants into the ambient air.
(8) "Gas collection system" means any system that employs various gas collection wells and connected piping, and mechanical blowers, fans, pumps, or compressors to create a pressure gradient and actively extract landfill gas.
(9) "Gas control device" means any device used to dispose of or treat collected landfill gas including, but not limited to, enclosed flares, internal combustion engines, boilers and boiler-to-steam turbine systems, fuel cells, and gas turbines.
(10) "Gas control system" means any system that disposes of or treats collected landfill gas by one or more of the following means: Combustion; gas treatment for subsequent sale, or sale for processing off-site, including for transportation fuel and injection into a natural gas pipeline.
(11) "Municipal solid waste landfill" means a discrete area of land or an excavation that receives household waste and that is not a land application site, surface impoundment, injection well, or pile.
(12) "Person" means an individual, firm, public or private corporation, association, partnership, political subdivision of the state, municipality, or governmental agency.
[ 2022 c 179 s 1.]

catchline: Definitions.


title: RCW 70A.540.020

text:
(1) This chapter applies to all municipal solid waste landfills that received solid waste after January 1, 1992, except as provided in subsection (2) of this section.
(2) This chapter does not apply to the following landfills:
(a) Landfills that receive only hazardous waste, or are currently regulated under the comprehensive environmental response, compensation, and liability act, 42 U.S.C. chapter 103; and
(b) Landfills that receive only inert waste or nondecomposable wastes.
(3) The department must adopt rules to implement this chapter. The rules adopted by the department must be informed by landfill methane regulations adopted by the California air resources board, the Oregon environmental quality commission, and the United States environmental protection agency.
[ 2022 c 179 s 2.]

catchline: Application of chapter—Rules.


title: RCW 70A.540.030

text:
(1) Each owner or operator of an active municipal solid waste landfill having fewer than 450,000 tons of waste in place must submit an annual waste in place report to the department or local authority pursuant to RCW 70A.540.070.
(a) The waste in place report must be prepared for the period of January 1st through December 31st of each year. The report must be submitted to the department or local authority during the subsequent calendar year, with the date of submission to be established by rule as adopted by the department.
(b) The waste in place report must be submitted annually until either:
(i) The active municipal solid waste landfill reaches a size greater than or equal to 450,000 tons of waste in place; or
(ii) The owner or operator submits a closure notification pursuant to RCW 70A.540.070.
(2) Each owner or operator of either an active municipal solid waste landfill having greater than or equal to 450,000 tons of waste in place or a closed municipal solid waste landfill having greater than or equal to 750,000 tons of waste in place must calculate the landfill gas heat input capacity pursuant to RCW 70A.540.080 and the department's implementing rules and must submit a landfill gas heat input capacity report to the department or local authority.
(a) If the calculated landfill gas heat input capacity is less
than 3,000,000 British thermal units per hour recovered, the owner or operator must:
(i) Recalculate the landfill gas heat input capacity annually using the procedures specified in RCW 70A.540.080 and the department's implementing rules; and
(ii) Submit an annual landfill gas heat input capacity report to the department or local authority until either of the following conditions are met:
(A) The calculated landfill gas heat input capacity is greater than or equal to 3,000,000 British thermal units per hour recovered; or
(B) If the municipal solid waste landfill is active, the owner or operator submits a closure notification pursuant to RCW 70A.540.070.
(b) If the landfill gas heat input capacity is greater than or equal to 3,000,000 British thermal units per hour recovered, the owner or operator must either:
(i) Comply with the requirements of this chapter and the department's implementing rules; or
(ii) Demonstrate to the satisfaction of the department or local authority that after four consecutive quarterly monitoring periods there is no measured concentration of methane of 200 parts per million by volume or greater using the instantaneous surface monitoring procedures specified in RCW 70A.540.080 and the department's implementing rules. Based on the monitoring results, the owner or operator must do one of the following:
(A) If there is any measured concentration of methane of 200 parts per million by volume or greater from the surface of an active, inactive, or closed municipal solid waste landfill, comply with this chapter and the department's implementing rules adopted pursuant to RCW 70A.540.020;
(B) If there is no measured concentration of methane of 200 parts per million by volume or greater from the surface of an active municipal solid waste landfill, recalculate the landfill gas heat input capacity annually as required in (a) of this subsection until such time that the owner or operator submits a closure notification pursuant to RCW 70A.540.070 and the department's implementing rules adopted pursuant to RCW 70A.540.020; or
(C) If there is no measured concentration of methane of 200 parts per million by volume or greater from the surface of a closed or inactive municipal solid waste landfill, the requirements of this chapter and the department's implementing rules adopted pursuant to RCW 70A.540.020 no longer apply, provided that the following information is submitted to and approved by the department or local authority:
(I) A waste in place report pursuant to RCW 70A.540.070 and the department's implementing rules adopted pursuant to RCW 70A.540.020; and
(II) All instantaneous surface monitoring records.
[ 2022 c 179 s 3.]

catchline: Waste in place report—Calculation of landfill gas heat input capacity.


title: RCW 70A.540.040

text:
(1) The owner or operator of any municipal solid waste landfill that has a calculated landfill gas heat input capacity greater than or equal to 3,000,000 British thermal units per hour recovered must install a gas collection and control system that meets the requirements of this section and the department's implementing rules adopted pursuant to RCW 70A.540.020, unless the owner or operator demonstrates to the satisfaction of the department or local authority that after four consecutive quarterly monitoring periods there is no measured concentration of methane of 200 parts per million by volume or greater using the instantaneous surface monitoring procedures specified in RCW 70A.540.080 and the department's implementing rules adopted pursuant to RCW 70A.540.020. If a municipal solid waste landfill partners with a third party to operate all or a portion of the gas collection and control system or energy recovery device, the obligation to comply with the requirements of this chapter are the responsibility of the owner or operator of the relevant portion of the gas collection and control system or energy recovery device.
(2) The gas collection and control system must handle the expected gas generation flow rate from the entire area of the municipal solid waste landfill and must collect gas at an extraction rate to comply with the surface methane emission limits set forth in RCW 70A.540.050 and the department's implementing rules.
(3) The gas collection and control system must be designed and operated so that there is no landfill gas leak that exceeds 500 parts per million by volume, measured as methane, at any component under positive pressure.
(4) The gas collection and control system, if it uses a flare, must achieve a methane destruction efficiency of at least 99 percent by weight and must use either an enclosed flare or, if the system uses an open flare, the open flare must comply with the following requirements:
(a) The open flare must meet the requirements of 40 C.F.R. Sec. 60.18 (as last amended by 73 Fed. Reg. 78209, December 22, 2008);
(b) An open flare installed and operating prior to December 31, 2022, may operate until January 1, 2032, unless the owner or operator demonstrates to the satisfaction of the department or local authority that the landfill gas heat input capacity is less than 3,000,000 British thermal units per hour pursuant to RCW 70A.540.080 and the department's implementing rules adopted pursuant to RCW 70A.540.020 and is insufficient to support the continuous operation of an enclosed flare or other gas control device; and
(c) The owner or operator may temporarily operate an open flare during the repair or maintenance of the gas control system, or while awaiting the installation of an enclosed flare, or to address off-site gas migration issues. Any owner or operator seeking to temporarily operate an open flare must submit a written request to the department or local authority pursuant to RCW 70A.540.100 and the department's implementing rules adopted pursuant to RCW 70A.540.020.
(5) If the gas collection and control system does not use a flare, it must either route the collected gas to an energy recovery device or devices, or must route the collected gas to a treatment system that processes the collected gas for subsequent sale or use.
(6) If a gas collection and control system routes the collected gas to an energy recovery device or devices, the owner or operator of the energy recovery device or devices must comply with the following requirements:
(a) The device or devices must achieve a methane destruction efficiency of at least 97 percent by weight, except for lean-burn internal combustion engines that were installed and operating prior to January 1, 2022, which must reduce the outlet methane concentration to less than 3,000 parts per million by volume, dry basis corrected to 15 percent oxygen; and
(b) If a boiler or a process heater is used as the gas control device, the landfill gas stream must be introduced into the flame zone, except that where the landfill gas is not the primary fuel for the boiler or process heater, introduction of the landfill gas stream into the flame zone is not required.
(7) If a gas collection and control system routes the collected gas to a treatment system that processes the collected gas for subsequent sale or use, the owner or operator of the treatment system must ensure the system achieves a methane leak rate of three percent or less by weight. Venting of processed landfill gas to the ambient air is not allowed. If the processed landfill gas cannot be routed for subsequent sale or use, then the treated landfill gas must be controlled according to subsection (4) of this section.
(8) The owner or operator of a municipal solid waste landfill must conduct a source test for any gas control device or devices subject to this section using the test methods identified in RCW 70A.540.080 and the department's implementing rules adopted pursuant to RCW 70A.540.020. If a gas control device is currently in compliance with source testing requirements as of June 9, 2022, the owner or operator must conduct the source test no less frequently than once every five years. If a gas control device is currently not in compliance with source testing requirements as of June 9, 2022, or if a subsequent source test shows the gas control device is out of compliance, the owner or operator must conduct the source test no less frequently than once per year until two subsequent consecutive tests both show compliance. Upon two subsequent consecutive compliant tests, the owner or operator may return to conducting the source test no less frequently than once every five years.
[ 2022 c 179 s 4.]

catchline: Gas collection and control system.


title: RCW 70A.540.050

text:
(1) Except as provided in RCW 70A.540.040, beginning January 1st of the year following the year in which the department adopts rules to implement this chapter, or upon commencing operation of a newly installed gas collection and control system or modification of an existing gas collection and control system pursuant to RCW 70A.540.040, whichever is later, and except as provided by the department to accommodate significant technological improvements, which may include the installation of an energy recovery device or devices, not to exceed 24 months after the department adopts rules to implement this chapter, no location on a municipal solid waste landfill surface may exceed the following methane concentration limits, dependent upon whether the owner or operator of the municipal solid waste landfills conducts, pursuant to RCW 70A.540.060, instantaneous surface emissions monitoring or integrated surface emissions monitoring:
(a) Five hundred parts per million by volume, other than nonrepeatable, momentary readings, as determined by instantaneous surface emissions monitoring; or
(b) An average methane concentration limit of 25 parts per million by volume as determined by integrated surface emissions monitoring.
(2) Any reading exceeding the limits set forth in subsection (1) of this section must be recorded as an exceedance and the following actions must be taken:
(a) The owner or operator must record the date, location, and value of each exceedance, along with retest dates and results. The location of each exceedance must be clearly marked and identified on a topographic map of the municipal solid waste landfill, drawn to scale, with the location of both the monitoring grids and the gas collection system clearly identified; and
(b) The owner or operator must take corrective action, which may include, but not be limited to, maintenance or repair of the cover, or well vacuum adjustments. The location or locations of any exceedance must be remonitored within 10 calendar days of a measured exceedance.
(3) The requirements of this section do not apply to:
(a) The working face of the landfill;
(b) Areas of the landfill surface where the landfill cover material has been removed for the purpose of installing, expanding, replacing, or repairing components of the landfill cover system, the landfill gas collection and control system, the leachate collection and removal system, or a landfill gas condensate collection and removal system;
(c) Areas of the landfill surface where the landfill cover material has been removed for law enforcement activities requiring excavation; or
(d) Areas of the landfill in which the landfill owner or operator, or a designee of the owner or operator, is engaged in active mining for minerals or metals.
[ 2022 c 179 s 5.]

catchline: Methane concentration limits.


title: RCW 70A.540.060

text:
(1) The owner or operator of a municipal solid waste landfill with a gas collection and control system must conduct instantaneous or integrated surface monitoring of the landfill surface according to the requirements specified in implementing rules adopted by the department pursuant to RCW 70A.540.020.
(2) The owner or operator of a municipal solid waste landfill with a gas collection and control system must monitor the gas control system according to the requirements specified in implementing rules adopted by the department pursuant to RCW 70A.540.020.
(3) The owner or operator of a municipal solid waste landfill with a gas collection and control system must monitor each individual wellhead to determine the gauge pressure according to the requirements specified in implementing rules adopted by the department pursuant to RCW 70A.540.020.
[ 2022 c 179 s 6.]

catchline: Monitoring.


title: RCW 70A.540.070

text:
(1) The owner or operator of a municipal solid waste landfill must maintain records and prepare reports as prescribed in this section and in the department's implementing rules adopted pursuant to RCW 70A.540.020.
(2) The owner or operator of a municipal solid waste landfill must maintain records related to monitoring, testing, landfill operations, and the operation of the gas control device, gas collection system, and gas control system. The records must be provided by the owner or operator to the department or local authority within five business days of a request from the department or local authority.
(3) The owner or operator of a municipal solid waste landfill that ceases to accept waste must submit a closure notification to the department or local authority within 30 days of ceasing to accept waste.
(4) The owner or operator of a municipal solid waste landfill must submit a gas collection and control system equipment removal report to the department or local authority within 30 days of well capping or the removal or cessation of operation of the gas collection, treatment, or control system equipment.
(5) The owner or operator of either an active municipal solid waste landfill with 450,000 or more tons of waste in place or a closed municipal solid waste landfill with 750,000 or more tons of waste in place must prepare an annual report for the period of January 1st through December 31st of each year. The annual report must include a calculation of landfill gas heat input capacity. Each annual report must be submitted to the department and local authority during the subsequent calendar year, with the date of submission to be established through rules adopted by the department.
(6) The owner or operator of an active municipal solid waste landfill with fewer than 450,000 tons of waste in place must submit a waste in place report to the department or local authority.
[ 2022 c 179 s 7.]

catchline: Records and reporting requirements.


title: RCW 70A.540.080

text:
(1) Any instrument used for the measurement of methane must be a hydrocarbon detector or other equivalent instrument approved by the department or local authority based on standards adopted by the department that address calibration, specifications, and performance criteria.
(2) The determination of landfill gas heat input capacity must be calculated consistent with the department's implementing rules adopted pursuant to RCW 70A.540.020.
(3) The owner or operator of a municipal solid waste landfill must measure the landfill surface concentration of methane using a hydrocarbon detector meeting the requirements of this section and the department's implementing rules adopted pursuant to RCW 70A.540.020.
(4) The owner or operator of a municipal solid waste landfill must measure leaks using a hydrocarbon detector meeting the requirements of this section and the department's implementing rules adopted pursuant to RCW 70A.540.020.
(5) The expected gas generation flow rate must be determined according to the department's implementing rules adopted pursuant to RCW 70A.540.020.
(6) The control device destruction efficiency must be determined according to the department's implementing rules adopted pursuant to RCW 70A.540.020.
(7) Gauge pressure must be determined using a hand-held manometer, magnehelic gauge, or other pressure measuring device approved by the department or local authority.
(8) Alternative test methods may be used if they are approved in writing by the department or local authority.
[ 2022 c 179 s 8.]

catchline: Measurements—Test methods.


title: RCW 70A.540.090

text:
(1) The department or local authority must allow the capping or removal of the gas collection and control system at a closed municipal solid waste landfill, provided the following three requirements are met:
(a) The gas collection and control system was in operation for at least 15 years, unless the owner or operator demonstrates to the satisfaction of the department or local authority that due to declining methane rates, the municipal solid waste landfill will be unable to operate the gas collection and control system for a 15-year period;
(b) Surface methane concentration measurements do not exceed the limits specified in RCW 70A.540.050; and
(c) The owner or operator submits an equipment removal report to the department or local authority pursuant to RCW 70A.540.070 and the department's implementing rules adopted pursuant to RCW 70A.540.020.
(2) Nothing in this section may be interpreted to modify or supersede requirements related to the capping or removal of gas collection and control systems that may exist under the state clean air act, the federal clean air act, or rules adopted pursuant to either the state clean air act or the federal clean air act.
[ 2022 c 179 s 9.]

catchline: Gas collection and control system—Capping or removal.


title: RCW 70A.540.100

text:
(1) The owner or operator of a municipal solid waste landfill may request alternatives to the compliance measures, monitoring requirements, and test methods and procedures set forth in RCW 70A.540.040, 70A.540.060, and 70A.540.080, and the department's implementing rules adopted pursuant to RCW 70A.540.020. Any alternatives requested by the owner or operator must be submitted in writing to the department.
(2) The criteria that the department may use to evaluate alternative compliance option requests include, but are not limited to: Compliance history; documentation containing the landfill gas flow rate and measured methane concentrations for individual gas collection wells or components; permits; component testing and surface monitoring results; gas collection and control system operation, maintenance, and inspection records; and historical meteorological data.
(3) The department must review the requested alternatives and either approve or disapprove the alternatives within 120 days. The department may request that additional information be submitted as part of the review of the requested alternatives.
(4) If a request for an alternative compliance option is denied, the department must provide written reasons for the denial.
(5) The department must deny a request for alternative compliance measures if the request does not provide levels of enforceability or methane emissions control that are equivalent to those set forth in this chapter or in the department's implementing rules adopted pursuant to RCW 70A.540.020.
[ 2022 c 179 s 10.]

catchline: Alternative compliance measures.


title: RCW 70A.540.110

text:
The department or local authority may request that any owner or operator of a municipal solid waste landfill demonstrate that a landfill does not meet the applicability criteria specified in RCW 70A.540.020. Such a demonstration must be submitted to the department or local authority within 90 days of a written request received from the department or local authority.
[ 2022 c 179 s 11.]

catchline: Applicability criteria specified in RCW 70A.540.020—Request for demonstration.


title: RCW 70A.540.120

text:
Any person who violates this chapter or any rules that implement this chapter may incur a civil penalty pursuant to RCW 70A.15.3160. The department shall waive penalties in the event the owner or operator of the landfill is actively taking corrective actions to control any methane exceedances. Penalties collected under this section must be deposited into the air pollution control account created in RCW 70A.15.1010 and may only be used to implement chapter 70A.540 RCW.
[ 2022 c 179 s 12.]

catchline: Violation of chapter—Civil penalty.


title: RCW 70A.540.130

text:
(1) The department and local authorities may assess and collect such fees as may be necessary to recover the direct and indirect costs associated with the implementation of this chapter.
(2) Fees collected by the department under this section must be deposited into the air pollution control account created in RCW 70A.15.1010 and may only be used by the department to implement this chapter.
[ 2026 c 87 s 2; 2022 c 179 s 13.]

catchline: Fees—Assessment and collection.


title: RCW 70A.545.005

text:
The purpose of this chapter is to create a state financial assurance program that adequately protects public health and safety and the environment from impacts due to petroleum underground storage tank system releases and meets the federal requirements for financial assurance so that a petroleum release will be appropriately addressed. The program focuses on prevention of releases, responsiveness to any release, and emphasizes remediation of releases in areas of risk for drinking water impacts or to equitably protect human health and the environment in communities that are marginalized, overburdened, and underserved. The program is administered by the pollution liability insurance agency.
[ 2023 c 170 s 1.]

catchline: Purpose of chapter. (Expires July 1, 2030.)


title: RCW 70A.545.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Agency" means the pollution liability insurance agency.
(2) "Annual aggregate" means the maximum amount of money the program will pay for all of an owner's or operator's eligible costs associated with a petroleum underground storage tank in one year.
(3) "Bodily injury" means actual medically documented costs and medically documentable future costs of adverse health effects that have resulted from exposure to a release from a petroleum underground storage tank. The term does not include pain and suffering.
(4) "Director" means the director or designee of the state pollution liability insurance agency.
(5) "Loss declaration form" means a request for payment from the state financial assurance program filed by the owner or operator.
(6) "Loss reserve" means the amount set aside by the agency for cost and expenses related to requests that have been made by an owner or operator.
(7) "Occurrence" means an accident, including continuous or repeated exposure to conditions, that results in a release from a petroleum underground storage tank.
(8) "Operator" means a person in control of, or having responsibility for, the daily operation of a petroleum underground storage tank.
(9) "Owner" means a person who owns a petroleum underground storage tank.
(10) "Per occurrence" means the period of time from identification through remediation of a release from a petroleum underground storage tank.
(11) "Petroleum" means any petroleum-based substance, including crude oil or any fraction that is liquid at standard conditions of temperature and pressure. "Petroleum" includes, but is not limited to, petroleum and petroleum-based substances comprised of a complex blend of hydrocarbons, such as motor fuels, jet fuels, distillate fuel oils, residual fuel oils, lubricants, petroleum solvents, used oils, and heating oils. The term does not include propane, asphalt, or any other petroleum product that is not liquid at standard conditions of temperature and pressure. Standard conditions of temperature and pressure are at 60 degrees Fahrenheit and 14.7 pounds per square inch absolute.
(12) "Petroleum underground storage tank" means an underground storage tank system regulated under chapter 70A.355 RCW or subtitle I of the solid waste disposal act (42 U.S.C. chapter 82, subchapter IX) that is used for storing petroleum.
(13) "Petroleum underground storage tank facility" means the location where the petroleum underground storage tank is located. The term encompasses all real property under common ownership associated with the operation of the petroleum underground storage tank.
(14) "Program" means the state financial assurance program created in this chapter.
(15) "Property damage" means a documented adverse physical impact to structures or property as a result of a release from a petroleum underground storage tank.
(16) "Release" has the same meaning as defined in RCW 70A.305.020.
(17) "Remedial action" has the same meaning as defined in RCW 70A.305.020.
(18) "Surplus reserve" means the amount set aside by the agency to provide financial protection from unexpected losses.
(19) "Third-party claim" means a civil action brought or asserted by an injured party against an owner or operator of a petroleum underground storage tank for bodily injury or property damages resulting from a release from a petroleum underground storage tank. The following entities are not considered a third party: A petroleum underground storage tank owner or operator; the owner of the property where the petroleum underground storage tank is located; a person to whom properties are transferred in anticipation of damage due to a release; employees or agents of an owner or operator; or employees or agents of the property owner.
[ 2023 c 170 s 2.]

catchline: Definitions. (Expires July 1, 2030.)


title: RCW 70A.545.020

text:
(1) The agency must establish and administer a state financial assurance program for owners and operators of petroleum underground storage tanks that meets the financial responsibility requirements established under chapter 70A.355 RCW.
(2) To participate in the program, an owner or operator must register a petroleum underground storage tank in accordance with procedures established by the agency and maintain compliance with the program eligibility requirements established by the agency. The agency may remove from the program any owner or operator who fails to maintain compliance with the program eligibility requirements.
(3) The agency may conduct an assessment of a registered petroleum underground storage tank facility and any release from the petroleum underground storage tank to determine program or cost eligibility. If an owner or operator does not allow an assessment, the agency may remove the owner or operator from the program or deny requests for payment under the program.
(4) Under the program, the agency may provide an eligible owner or operator of a registered petroleum underground storage tank the following financial assurances:
(a) For releases occurring after tank registration, up to $2,000,000 per occurrence for taking remedial action and for compensating third parties for bodily injury and property damage caused by the release during the time the tank is registered by the owner or operator; and
(b) For releases occurring prior to tank registration, up to $1,000,000 per occurrence for taking remedial action.
(5) Under the program, the agency may not expend more than $3,000,000 per state fiscal year for multiple occurrences involving a single petroleum underground storage tank.
(6) The agency may prioritize funding for a release under the program based on the following factors:
(a) The threats posed by the release to human health and the environment;
(b) Whether the population threatened by the release may include a vulnerable population or an overburdened community as defined in RCW 70A.02.010; and
(c) Other factors specified by the agency.
(7) Claims for remedial action costs will receive priority over payment of a third-party claim. Before funding any third-party claim resulting from a release under the program, the agency must reserve the estimated cost of any remedial actions necessary to address the release, and if funding is remaining then payment may be made on an eligible third-party claim.
(8) Funding for remedial actions and third-party claims under the program is limited to the reasonable and necessary eligible costs established by the agency.
(a) For remedial actions, the agency may establish a range of eligible costs or base payment of eligible costs on criteria to be met by persons who contract to perform remedial actions.
(b) The agency is not liable for any costs for remedial actions or third-party claims under the program where no owner or operator exists.
(9) The agency may require an agency representative to be present during the removal of a registered petroleum underground storage tank. If an owner or operator does not allow an agency representative to be present during the removal or does not comply with procedures established by the agency, the agency may deny requests for payment of tank removal costs under the program.
[ 2023 c 170 s 3.]

catchline: State financial assurance program. (Expires July 1, 2030.)


title: RCW 70A.545.030

text:
The agency must by rule establish a fee to recover from owners and operators of registered petroleum underground storage tanks the cost of administering the program. The fee may be collected on an annual basis and may not exceed $25,000 per petroleum underground storage tank per year.
[ 2023 c 170 s 4.]

catchline: Fee to recover cost of program administration. (Expires July 1, 2030.)