title: RCW 70A.65.110

text:
(1) Facilities owned or operated by a covered entity must receive an allocation of allowances for the covered emissions at those facilities under this subsection at no cost if the operations of the facility are classified as emissions-intensive and trade-exposed, as determined by being engaged in one or more of the processes described by the following industry descriptions and codes in the North American industry classification system as those classifications existed on January 1, 2026:
(a) Metals manufacturing, including iron and steel making, ferroalloy and primary metals manufacturing, secondary aluminum smelting and alloying, aluminum sheet, plate, and foil manufacturing, and smelting, refining, and alloying of other nonferrous metals, North American industry classification system codes beginning with 331;
(b) Paper manufacturing, including pulp mills, paper mills, and paperboard milling, North American industry classification system codes beginning with 322;
(c) Aerospace product and parts manufacturing, North American industry classification system codes beginning with 3364;
(d) Wood products manufacturing, North American industry classification system codes beginning with 321;
(e) Nonmetallic mineral manufacturing, including glass container manufacturing, North American industry classification system codes beginning with 327;
(f) Chemical manufacturing, North American industry classification system codes beginning with 325;
(g) Computer and electronic product manufacturing, including semiconductor and related device manufacturing, North American industry classification system codes beginning with 334;
(h) Food manufacturing, North American industry classification system codes beginning with 311;
(i) Cement manufacturing, North American industry classification system code 327310;
(j) Petroleum refining, North American industry classification system code 324110;
(k) Asphalt paving mixtures and block manufacturing from refined petroleum, North American industry classification system code 324121;
(l) Asphalt shingle and coating manufacturing from refined petroleum, North American industry classification system code 324122; and
(m) All other petroleum and coal products manufacturing from refined petroleum, North American industry classification system code 324199.
(2) By July 1, 2022, the department must adopt by rule objective criteria for both emissions' intensity and trade exposure for the purpose of identifying emissions-intensive, trade-exposed facilities during the second compliance period of the program and subsequent compliance periods. A manufacturing facility covered by subsection (1)(a) through (m) of this section is considered an emissions-intensive, trade-exposed facility and is eligible for allocation of no cost allowances as described in this section. In addition, any covered party that owns or operates a manufacturing facility that can demonstrate to the department that it meets the objective criteria adopted by rule is also eligible for treatment as emissions-intensive, trade-exposed and is eligible for allocation of no cost allowances as described in this section. In developing the objective criteria under this subsection, the department must consider the locations of facilities potentially identified as emissions-intensive, trade-exposed facilities relative to overburdened communities.
(3)(a) For the years 2023 through 2026, the annual allocation of no cost allowances for direct distribution to a facility identified as emissions-intensive and trade-exposed must be equal to the facility's baseline carbon intensity established using data from 2015 through 2019, or other data as allowed under this section, multiplied by the facility's actual production for each calendar year during the compliance period. For facilities using the mass-based approach, the allocation of no cost allowances shall be equal to the facility's mass-based baseline using data from 2015 through 2019, or other data as allowed under this section.
(b) For the four years beginning January 2027 and in each subsequent four-year period, the annual allocation of no cost allowances established in (a) of this subsection shall be adjusted according to the benchmark reduction schedules established in (b)(ii) and (iii) and (e) of this subsection multiplied by the facility's actual production during the period. The department shall adjust the no cost allocation of allowances and credits to an emissions-intensive and trade-exposed facility to avoid duplication with any no cost allowances transferred pursuant to RCW 70A.65.120 and 70A.65.130, if applicable.
(i) For the purpose of this section, "carbon intensity" means the amount of carbon dioxide equivalent emissions from a facility in metric tons divided by the facility specific measure of production including, but not limited to, units of product manufactured or sold, over the same time interval.
(ii) If an emissions-intensive and trade-exposed facility is not able to feasibly determine a carbon intensity benchmark based on its unique circumstances, the entity may elect to use a mass-based baseline that does not vary based on changes in production volumes. The mass-based baseline must be based upon data from 2015 through 2019, unless the emissions-intensive, trade-exposed facility can demonstrate that there have been abnormal periods of operation that materially impacted the facility and the baseline period should be expanded to include years prior to 2015. For the years 2023 through 2026, these facilities must be awarded no cost allowances equal to 100 percent of the facility's mass-based baseline. For each year during the years 2027 through 2030, these facilities must be awarded no cost allowances equal to 97 percent of the facility's mass-based baseline. For each year during the years 2031 through 2034, these facilities must be awarded no cost allowances equal to 94 percent of the facility's mass-based baseline. Except as provided in (b)(iii) of this subsection, if a facility elects to use a mass-based baseline, it may not later convert to a carbon intensity benchmark during the years 2023 through 2034.
(iii) A facility with a North American industry classification system code beginning with 3364 that is utilizing a mass-based baseline in (b)(ii) of this subsection must receive an additional no cost allowance allocation under this section in order to accommodate an increase in production that increases its emissions above the baseline on a basis equivalent in principle to those awarded to entities utilizing a carbon intensity benchmark pursuant to this subsection (3)(b). The department shall establish methods to award, for any annual period, additional no cost allowance allocations under this section and, if appropriate based on projected production, to achieve a similar ongoing result through the adjustment of the facility's mass-based baseline. An eligible facility under this subsection that has elected to use a mass-based baseline may not convert to a carbon intensity benchmark until the next compliance period.
(c)(i) By September 15, 2022, each emissions-intensive, trade-exposed facility shall submit its carbon intensity baseline for the first compliance period to the department. The carbon intensity baseline for the first compliance period must use data from 2015-2019, unless the emissions-intensive, trade-exposed facility can demonstrate that there have been abnormal periods of operation that materially impacted the facility and the baseline period should be expanded to include years prior to 2015.
(ii) By November 15, 2022, the department shall review and approve each emissions-intensive, trade-exposed facility's baseline carbon intensity for the years 2023 through 2026.
(d) During the years 2023 through 2026, each emissions-intensive, trade-exposed facility must record its facility-specific carbon intensity baseline based on its actual production.
(e)(i) For the years 2027 through 2030, the second period benchmark for each emissions-intensive, trade-exposed facility is three percent below the first period baseline specified in (a), (b), and (c) of this subsection.
(ii) For the years 2031 through 2034, the third period benchmark for each emissions-intensive, trade-exposed facility is three percent lower than the years 2027 through 2030.
(f) Prior to the beginning of 2027, 2031, or subsequent four-year periods, the department may make an upward adjustment in the next four-year period's benchmark for an emissions-intensive, trade-exposed facility based on the facility's demonstration to the department that additional reductions in carbon intensity or mass emissions are not technically or economically feasible. The department may base the upward adjustment applicable to an emissions-intensive, trade-exposed facility in the next four-year period on the facility's best available technology analysis, and may consider information submitted to the department under subsection (9) of this section. The department shall by rule provide for an emissions-intensive, trade-exposed facility to apply to the department for an upward adjustment to the allocation for direct distribution of no cost allowances based on its facility-specific carbon intensity benchmark or mass emissions baseline. The department shall make adjustments based on:
(i) A significant change in the emissions use or emissions attributable to the manufacture of an individual good or goods in this state by an emissions-intensive, trade-exposed facility based on a finding by the department that an adjustment is necessary to accommodate for changes in the manufacturing process that have a material impact on emissions;
(ii) Significant changes to an emissions-intensive, trade-exposed facility's external competitive environment that result in a significant increase in leakage risk; or
(iii) Abnormal operating periods when an emissions-intensive, trade-exposed facility's carbon intensity has been materially affected so that these abnormal operating periods are either excluded or otherwise considered in the establishment of the carbon intensity benchmarks.
(4) If the legislature does not adopt a schedule of allowances to be provided to facilities owned or operated by each covered entity designated as emissions-intensive, trade-exposed facilities from January 1, 2035, through January 1, 2050, those facilities must continue to receive allowances as provided in the years 2031 through 2034 until a schedule is adopted by the legislature.
(5) If the actual emissions of an emissions-intensive, trade- exposed facility exceed the facility's no cost allowances assigned for that compliance period, it must acquire additional compliance instruments such that the total compliance instruments transferred to its compliance account consistent with this chapter equals emissions during the compliance period. An emissions-intensive, trade-exposed facility must be allowed to bank unused allowances, including for future sale and investment in best available technology when economically feasible. The department shall limit the use of offset credits for compliance by an emissions-intensive, trade-exposed facility, such that the quantity of no cost allowances plus the provision of offset credits does not exceed 100 percent of the facility's total compliance obligation over a compliance period.
(6) The department must withhold or withdraw the relevant share of allowances allocated to a covered entity under this section in the event that the covered entity ceases production in the state and becomes a closed facility. In the event an entity curtails all production and becomes a curtailed facility, the allowances are retained but cannot be traded, sold, or transferred and are still subject to the emissions reduction requirements specified in this section. An owner or operator of a curtailed facility may transfer the allowances to a new operator of the facility that will be operated under the same North American industry classification system codes. If the curtailed facility becomes a closed facility, then all unused allowances will be transferred to the emissions containment reserve. A curtailed facility is not eligible to receive free allowances during a period of curtailment. Any allowances withheld or withdrawn under this subsection must be transferred to the emissions containment reserve.
(7) An owner or operator of more than one facility receiving no cost allowances under this section may transfer allowances among the eligible facilities.
(8) Rules adopted by the department under this section must include protocols for allocating allowances at no cost to an eligible facility built after July 25, 2021. The protocols must include consideration of the products and criteria pollutants being produced by the facility, as well as the local environmental and health impacts associated with the facility. For a facility that is built on tribal lands or is determined by the department to impact tribal lands and resources, the protocols must be developed in consultation with the affected tribal nations.
(9)(a) The purpose of the reporting requirements of this subsection (9) is to establish a framework under which measures for reducing greenhouse gas emissions by emissions-intensive, trade-exposed facilities in support of statewide emissions limits, including implementation barriers, can be identified, evaluated, and progressed. It is not, however, the intent of the legislature that the reporting framework established in this section require implementation of any specific emissions reduction measures identified, but to collect information that will inform the development and implementation of state policies and programs that directly support or enable emissions reduction activities by emissions-intensive, trade-exposed facilities. The legislature intends, using the provisions of this subsection (9), for a future legislature to establish a framework that will:
(i) Achieve emissions reductions by emissions-intensive, trade-exposed facilities in a manner that does not conflict with the overall allowance budgets established under this chapter and that does not prohibit the state from achieving the statewide emissions limits of chapter 70A.45 RCW; and
(ii) Inform the development and implementation of policies and programs, including financial incentives, to support and enable emissions reductions by owners and operators of emissions-intensive, trade-exposed facilities, including when the department and other state agencies consider grant applications or award other funds deriving from revenues under this chapter.
(b) By December 1, 2028, and every four years thereafter, the owner or operator of an emissions-intensive, trade-exposed facility must provide the following to the department in a form and manner prescribed by the department through guidance or rule:
(i) Information about the greenhouse gas emissions of each emissions-intensive facility, including industrial processes resulting in greenhouse gas emissions; and
(ii) An assessment of technically and economically feasible measures to reduce greenhouse gas emissions at the facility. The assessment must:
(A) Identify technically feasible emissions reduction projects in each facility that could be implemented within the next five to 10 years, based on a comprehensive review of current scientific and technical sources along with their estimated implementation costs and an assessment of economic feasibility, including justification for the conclusions reached. For each applicable emissions reduction project, the following information must be provided:
(I) A description of the project;
(II) The project's ability to meet process specifications, permitting requirements, and low, medium, and high heat temperature ranges;
(III) Estimated emissions reductions;
(IV) Availability or maturation of technology;
(V) Estimated capital expenditures;
(VI) Estimated annual operating expenditures, including changes in annual costs resulting from project implementation, such as energy or maintenance costs;
(VII) Cost-effectiveness;
(VIII) Estimated implementation timeline;
(IX) Project constraints, if applicable, such as electricity supply availability and permitting requirements; and
(X) Estimated impacts on the emissions of criteria air pollutants and hazardous air pollutants by the facility;
(B) Evaluate potential measures for greenhouse gas emissions reductions at the facility including, but not limited to, any combination of improved energy efficiency, deployment of new technologies, fuel switching, or energy conversion; and
(C) Be reviewed by a licensed professional engineer that is not employed by or currently otherwise working under a contract with the emissions-intensive, trade-exposed facility, its subsidiaries, or related entities and has no common ownership with the facility or covered entity. The licensed professional engineer must certify that:
(I) The information submitted in this subsection (9)(b)(ii) is credible; and
(II) The owner or operator of an emissions-intensive, trade-exposed facility has undertaken a comprehensive and credible process to identify projects for greenhouse gas emissions reductions that are technically and economically feasible within the next five to 10 years.
(c) In addition to potential measures to reduce emissions at the facility, the owner or operator of an emissions-intensive, trade-exposed facility may optionally include in its assessment submitted under (b)(ii) of this subsection (9), alternative projects that:
(i) Reduce emissions upstream or downstream of the facility;
(ii) Relate to raw material input; or
(iii) Provide cobenefits alongside emissions reductions, including community or environmental benefits.
(d) For the limited purpose of calculating emissions or submitting an assessment as provided in (b) of this subsection (9), the department must not require any new permanent submetering for greenhouse gas emissions sources. Nothing in this subsection limits the authority of the department to require permanent submetering for other purposes, including under this chapter, or in conjunction with future authority provided under this section by the legislature.
(e) The department must assess a penalty in accordance with RCW 70A.65.200(5) if an owner or operator of an emissions-intensive, trade-exposed facility fails to comply with the requirements of this subsection (9).
(f) Information contained in assessments submitted to the department by an emissions-intensive, trade-exposed facility under this subsection (9) are records containing financial, proprietary, and other market-sensitive information in accordance with RCW 70A.65.100(9)(c), and such assessments are fully exempt from public disclosure in their entirety. The department may make public summarized information contained in assessments submitted under this subsection (9) in an aggregated manner that does not allow for the identification of any facility-specific financial, proprietary, or market-sensitive information.
[ 2026 c 253 s 1; 2024 c 352 s 6; 2021 c 316 s 13.]
Notes:
Contingent effective date—2024 c 352: See note following RCW 70A.65.010.

catchline: Allocation of allowances to emissions-intensive, trade-exposed industries.


doc_type: statute

jurisdiction: wa

title: RCW 70A.65.120

text:
(1) The legislature intends by this section to allow all consumer-owned electric utilities and investor-owned electric utilities subject to the requirements of chapter 19.405 RCW, the Washington clean energy transformation act, to be eligible for allowance allocation as provided in this section in order to mitigate the cost burden of the program on electricity customers.
(2)(a) By October 1, 2022, the department shall adopt rules, in consultation with the department of commerce and the utilities and transportation commission, establishing the methods and procedures for allocating allowances for consumer-owned and investor-owned electric utilities. The rules must take into account the cost burden of the program on electricity customers.
(b) By October 1, 2022, the department shall adopt an allocation schedule by rule, in consultation with the department of commerce and the utilities and transportation commission, for the first compliance period for the provision of allowances at no cost to consumer-owned and investor-owned electric utilities. This allocation must be consistent with a forecast, that is approved by the appropriate governing board or the utilities and transportation commission, of each utility's supply and demand, and the cost burden resulting from the inclusion of the covered entities in the first compliance period.
(c) By October 1, 2026, the department shall adopt an allocation schedule by rule, in consultation with the department of commerce and the utilities and transportation commission, for the provision of allowances for the second compliance period at no cost to consumer-owned and investor-owned electric utilities. This allocation must be consistent with a forecast, that is approved by the appropriate governing board or the utilities and transportation commission, of each utility's supply and demand, and the cost burden resulting from the inclusion of covered entities in the second compliance period. The allowances included in this schedule must reflect the increased scope of coverage in the electricity sector relative to the program budget of allowances established in 2022.
(d) By October 1, 2030, the department shall adopt an allocation schedule by rule, in consultation with the department of commerce and the utilities and transportation commission, for the provision of allowances at no cost to consumer-owned and investor-owned electric utilities for the compliance periods contained within calendar years 2031 through 2045. This allocation must be consistent with a forecast, that is approved by the appropriate governing board or the utilities and transportation commission, of each utility's supply and demand, and the cost burden resulting from the inclusion of the covered entities in the compliance periods. The rule developed under this subsection (2)(d) may prescribe an amount of allowances allocated at no cost that must be consigned to auction by consumer-owned and investor-owned electric utilities. However, utilities may use allowances for compliance equal to their covered emissions in any calendar year they were not subject to potential penalty under RCW 19.405.090. Under no circumstances may utilities receive any free allowances after 2045.
(3)(a) During the first compliance period, allowances allocated at no cost to consumer-owned and investor-owned electric utilities may be consigned to auction for the benefit of ratepayers, deposited for compliance, or a combination of both. The rules adopted by the department under subsection (2) of this section must include provisions for directing revenues generated under this subsection to the applicable utilities.
(b) By October 1, 2026, the department, in consultation with the department of commerce and the utilities and transportation commission, must adopt rules governing the amount of allowances allocated at no cost under subsection (2)(c) of this section that must be consigned to auction. For calendar year 2030, electric utilities may use allowances for compliance equal to their covered emissions if not subject to potential penalty under RCW 19.405.090.
(4) The benefits of all allowances consigned to auction under this section must be used by consumer-owned and investor-owned electric utilities for the benefit of ratepayers, with the first priority the mitigation of any rate impacts to low-income customers.
(5) If an entity is identified by the department as an emissions-intensive, trade-exposed industry under RCW 70A.65.110, unless allowances have been otherwise allocated for electricity-related emissions to the entity under RCW 70A.65.110 or to a consumer-owned utility under this section, the department shall allocate allowances at no cost to the electric utility or power marketing administration that is providing electricity to the entity in an amount equal to the forecasted emissions for electricity consumption for the entity for the compliance period.
(6) The department shall allow for allowances to be transferred between a power marketing administration and electric utilities and used for direct compliance.
(7) Rules establishing the allocation of allowances to consumer-owned utilities and investor-owned utilities must consider the impact of electrification of buildings, transportation, and industry on the electricity sector.
(8) Nothing in this section affects the requirements of chapter 19.405 RCW.
(9) A consumer-owned utility that is party to a contract that meets the following conditions must be issued allowances under this section for emissions associated with imported electricity, in order to prevent impairment of the value of the contract to either party:
(a) The contract does not address compliance costs imposed upon the consumer-owned utility by the program created in this chapter; and
(b) The contract was in effect as of July 25, 2021, and expires no later than the end of the first compliance period.
(10) The department may not allocate allowances to an electric utility under this section for greenhouse gas emissions associated with electricity produced by a waste to energy facility for which the facility has a compliance obligation under this chapter.
[ 2026 c 216 s 4; 2021 c 316 s 14.]
Notes:
Intent—2026 c 216: See note following RCW 70A.65.135.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Allocation of allowances to electric utilities.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 70A.65.130

text:
(1) For the benefit of ratepayers, allowances must be allocated at no cost to covered entities that are natural gas utilities.
(a) By October 1, 2022, the department shall adopt rules, in consultation with the utilities and transportation commission, establishing the methods and procedures for allocating allowances to natural gas utilities. Rules adopted under this subsection must allow for a natural gas utility to be provided allowances at no cost to cover their emissions and decline proportionally with the cap, consistent with RCW 70A.65.070. Allowances allocated at no cost to natural gas utilities must be consigned to auction for the benefit of ratepayers consistent with subsection (2) of this section, deposited for compliance, or a combination of both. The rules adopted by the department pursuant to this section must include provisions directing revenues generated under this subsection to the applicable utilities.
(b) By October 1, 2022, the department shall adopt an allocation schedule by rule, in consultation with the utilities and transportation commission, for the first two compliance periods for the provision of allowances for the benefit of ratepayers at no cost to natural gas utilities.
(c) By October 1, 2028, the department shall adopt an allocation schedule by rule, in consultation with the utilities and transportation commission, for the provision of allowances for the benefit of ratepayers at no cost to natural gas utilities for the compliance periods contained within calendar years 2031 through 2040.
(2)(a) Beginning in 2023, 65 percent of the no cost allowances must be consigned to auction for the benefit of customers, including at a minimum eliminating any additional cost burden to low-income customers from the implementation of this chapter. Rules adopted under this subsection must increase the percentage of allowances consigned to auction by five percent each year until a total of 100 percent is reached.
(b) Revenues from allowances sold at auction must be returned by providing nonvolumetric credits on ratepayer utility bills, prioritizing low-income customers, or used to minimize cost impacts on low-income, residential, and small business customers through actions that include, but are not limited to, weatherization, decarbonization, conservation and efficiency services, and bill assistance. The customer benefits provided from allowances consigned to auction under this section must be in addition to existing requirements in statute, rule, or other legal requirements.
(c) Except for low-income customers, the customer bill credits under this subsection are reserved exclusively for customers at locations connected to a natural gas utility's system on July 25, 2021. Bill credits may not be provided to customers of the gas utility at a location connected to the system after July 25, 2021.
(3) In order to qualify for no cost allowances, covered entities that are natural gas utilities must provide copies of their greenhouse gas emissions reports filed with the United States environmental protection agency under 40 C.F.R. Part 98 subpart NN - suppliers of natural gas and natural gas liquids for calendar years 2015 through 2021 to the department on or before March 31, 2022. The copies of the reports must be provided in electronic form to the department, in a manner prescribed by the department. The reports must be complete and contain all information required by 40 C.F.R. Sec. 98.406 including, but not limited to, information on large end users served by the natural gas utility. For any year where a natural gas utility was not required to file this report with the United States environmental protection agency, a report may be submitted in a manner prescribed by the department containing all of the information required in the subpart NN report.
(4) To receive no cost allowances, a natural gas utility must provide to the department an annual greenhouse gas emissions report as required by RCW 70A.15.2200(5).
[ 2025 c 195 s 3; 2021 c 316 s 15.]

catchline: Allocation of allowances to natural gas utilities.


title: RCW 70A.65.135

text:
(1) Beginning January 1, 2027, until December 31, 2030, the department must allocate no cost allowances to a waste to energy facility specified in RCW 70A.65.080(2) that was constructed prior to 1992, if the facility is operated in compliance with federal laws and regulations and meets state air quality standards. Except as provided in subsection (2) of this section, no cost allowances are allocated for the benefit of solid waste ratepayers. No cost allowances must be allocated in an amount equal to the following percentages of the facility's baseline greenhouse gas emissions, defined as the facility's average annual emissions, during the calendar years 2021 through 2025:
(a) For emissions years 2027 and 2028, 100 percent of baseline greenhouse gas emissions;
(b) For emissions year 2029, 93 percent of baseline greenhouse gas emissions; and
(c) For emissions year 2030, 86 percent of baseline greenhouse gas emissions.
(2)(a) 40 percent of the allowances allocated under subsection (1) of this section must be consigned to auction. Proceeds from the consigned allowances may only be used with the approval of the department by the owner or operator of the waste to energy facility for investments in projects or programs that reduce greenhouse gas emissions associated with the waste to energy facility.
(b) Before expenditure of proceeds from consigned allowances under (a) of this subsection, the owner or operator of the waste to energy facility must submit to the department a written proposal of how the investments in projects or programs will reduce greenhouse gas emissions associated with the waste to energy facility. Before developing a proposal, the owner or operator of the waste to energy facility may consult with the department and the department of commerce to understand the information that will be needed to adequately review the proposal. Within 90 days of receipt, the department must complete its review of the proposal. The owner or operator of the waste to energy facility must address the department's comments and gain final approval of the revised proposal from the department. The owner or operator of the waste to energy facility must take reasonable steps toward implementation of the proposal consistent with the proposal timeline and requirements. A proposal may take the form of a project or program in the greenhouse gas reduction plan required in RCW 70A.65.137, once approved by the department.
(3) If the actual emissions of the waste to energy facility exceed the facility's no cost allowances allocated for emissions years 2027 through 2030, an owner or operator of the waste to energy facility must acquire additional compliance instruments such that the total compliance instruments transferred to its compliance account consistent with this chapter equal emissions during emissions years 2027 through 2030. The waste to energy facility must be allowed to bank unused allowances. The department must limit the use of offset credits for compliance by the waste to energy facility such that the quantity of no cost allowances plus the provision of offset credits does not exceed 100 percent of the facility's total compliance obligation for emissions years 2027 through 2030.
(4) The department must withhold or withdraw the relevant share of allowances allocated to the waste to energy facility under this section if the facility ceases production in the state and becomes a closed facility. If an entity curtails all production and becomes a curtailed facility, the allowances are retained but cannot be traded, sold, or transferred and are still subject to the emissions reduction requirements specified in this chapter. If the curtailed facility becomes a closed facility, then all unused allowances must be transferred to the emissions containment reserve established in RCW 70A.65.140. A curtailed facility is not eligible to receive no cost allowances during a period of curtailment. Any allowances withheld or withdrawn under this subsection must be transferred to the emissions containment reserve established in RCW 70A.65.140.
(5) For purposes of this section, "emissions year" means the calendar year in which greenhouse gas emissions occur.
[ 2026 c 216 s 2.]
Notes:
Intent—2026 c 216: "The legislature intends to treat all municipal solid waste management systems fairly and equivalently throughout the state under the Washington cap and invest program. This act achieves more equal treatment of all communities with municipal solid waste management systems under state policy." [ 2026 c 216 s 1.]

catchline: Allocation of allowances—Waste to energy facilities.


title: RCW 70A.65.137

text:
(1) By December 1, 2030, the owner or operator of a waste to energy facility constructed prior to 1992 must provide a two-part plan to the department and the department of commerce. The plan must include a proposed greenhouse gas emissions reduction plan and a waste reduction and material recovery plan. The greenhouse gas emissions reduction portion of the plan must outline how the facility will achieve emissions reductions consistent with the state emissions limits for 2040 and 2050 under chapter 70A.45 RCW. The waste reduction and material recovery portion of the plan must be consistent with the state's waste management hierarchy established in RCW 70A.205.005, take into consideration the organic material management policies in RCW 70A.205.540 and 70A.205.545 and the expected impacts of chapter 70A.208 RCW, and consider the local solid waste plan under chapter 70A.205 RCW. The department may provide technical assistance and guidance for development and implementation of the plan required by this section.
(2) In the plan, an owner or operator of the waste to energy facility may:
(a) Propose that emissions reductions be achieved by any combination of carbon capture, sequestration or other captured carbon use adopted by rule or policy by the department, waste reduction activities, recycling and reuse activities, energy conservation, industrial symbiosis, or other greenhouse gas emissions reduction strategies identified by the owners or operators of the waste to energy facility; and
(b) Include the projected costs of emissions reductions at the facility, and may include information on funding options such as revenues from consigned no-cost allowances and funding from public and private sources.
(3) In developing the plan, the owner or operator of the waste to energy facility must consider social, environmental, and health factors in overburdened communities and vulnerable populations, and consult with local municipally created stakeholder and community advisory bodies formed with the purpose of advising on climate or sustainability decisions.
(4) Within 180 days of receipt, the department, in consultation with the department of commerce, must complete its review of the plan. The owner or operator of the waste to energy facility, in consultation with the advisory groups specified in subsection (3) of this section, must address the department's comments and finalize the plan within 120 days of receipt of the department's comments. The owner or operator of the waste to energy facility must take reasonable steps towards implementation of the plan and operate the facility and take other actions, as appropriate, consistent with the goals of the plan.
[ 2026 c 216 s 5.]
Notes:
Intent—2026 c 216: See note following RCW 70A.65.135.

catchline: Waste to energy facilities—Emissions and waste reduction plan.


title: RCW 70A.65.140

text:
(1) To help ensure that the price of allowances remains sufficient to incentivize reductions in greenhouse gas emissions, the department must establish an emissions containment reserve and set an emissions containment reserve trigger price by rule. The price must be set at a reasonable amount above the auction floor price and equal to the level established in jurisdictions with which the department has entered into a linkage agreement. If a jurisdiction with which the department might enter into a linkage agreement has no emissions containment trigger price, the department may suspend the trigger price under this subsection. The purpose of withholding allowances in the emissions containment reserve is to secure additional emissions reductions.
(2) In the event that the emissions containment reserve trigger price is met during an auction, the department must automatically withhold allowances as needed. The department must convert and transfer any allowances that have been withheld from auction into the emissions containment reserve account.
(3) Emissions containment reserve allowances may only be withheld from an auction if the demand for allowances would result in an auction clearing price that is less than the emissions containment reserve trigger price prior to the withholding from the auction of any emissions containment reserve allowances.
(4) The department shall transfer allowances to the emissions containment reserve in the following situations:
(a) No less than two percent of the total number of allowances available from the allowance budgets for calendar years 2023 through 2026;
(b) When allowances are unsold in auctions under RCW 70A.65.100;
(c) When facilities curtail or close consistent with RCW 70A.65.110(6) or 70A.65.135; or
(d) When facilities fall below the emissions threshold. The amount of allowances withdrawn from the program budget must be proportionate to the amount of emissions such a facility was previously using.
(5)(a) Allowances must be distributed from the emissions containment reserve by auction when new covered and opt-in entities enter the program.
(b) Allowances equal to the greenhouse gas emissions resulting from a new or expanded emissions-intensive, trade-exposed facility with emissions in excess of 25,000 metric tons per year during the first applicable compliance period will be provided to the facility from the reserve created in this section and must be retired by the facility. In subsequent compliance periods, the facility will be subject to the regulatory cap and related requirements under this chapter.
[ 2026 c 216 s 3; 2022 c 181 s 11; 2021 c 316 s 16.]
Notes:
Intent—2026 c 216: See note following RCW 70A.65.135.

catchline: Emissions containment reserve withholding.


title: RCW 70A.65.150

text:
(1) To help minimize allowance price volatility in the auction, the department shall adopt by rule an auction floor price and a schedule for the floor price to increase by a predetermined amount every year. The department may not sell allowances at bids lower than the auction floor price. The department's rules must specify holding limits that determine the maximum number of allowances that may be held for use or trade by a registered entity at any one time. The department shall also establish a reserve auction floor price to limit extraordinary prices and to determine when to offer allowances through the allowance price containment reserve auctions authorized under this section.
(2) For calendar years 2023 through 2026, the department must place no less than two percent of the total number of allowances available from the allowance budgets for those years in an allowance price containment reserve. The reserve must be designed as a mechanism to assist in containing compliance costs for covered and opt-in entities in the event of unanticipated high costs for compliance instruments.
(3)(a) The department shall adopt rules for holding auctions of allowances from the price containment reserve when the settlement prices in the preceding auction exceed the adopted reserve auction floor price. The auction must be separate from auctions of other allowances.
(b) Allowances must also be distributed from the allowance price containment reserve by auction when new covered and opt-in entities enter the program and allowances in the emissions containment reserve under RCW 70A.65.140(5) are exhausted.
(4) Only covered and opt-in entities may participate in the auction of allowances from the allowance price containment reserve.
(5) The process for reserve auctions is the same as the process provided in RCW 70A.65.100 and the proceeds from reserve auctions must be treated the same.
(6) The department shall by rule:
(a) Set the reserve auction floor price in advance of the reserve auction. The department may choose to establish multiple price tiers for the allowances from the reserve;
(b) Establish the requirements and schedule for the allowance price containment reserve auctions; and
(c) Place no less than two percent and no more than five percent of the total number of allowances from the allowance budgets from 2027 to 2040 in the allowance price containment reserve.
(7) In order to contain allowance prices in advance of the timeline for linkage with other jurisdictions, the department must amend the schedule of allowance allocations adopted by rule under subsection (6) of this section to place in the allowance price containment reserve and to make available, in the second compliance period of the program, all allowances scheduled to be placed in the allowance price containment reserve through 2040.
[ 2025 c 320 s 4; 2022 c 181 s 6; 2021 c 316 s 17.]

catchline: Allowance price containment.


title: RCW 70A.65.160

text:
(1)(a) The price ceiling for calendar years 2026 and 2027 shall be $80 to provide cost protection for covered entities obligated to comply with this chapter. The department must adjust the allowance price containment reserve tier 2 price to reflect the 2026 and 2027 price ceiling, and the price ceiling must increase annually in proportion to the reserve auction floor price established in RCW 70A.65.150(1).
(b) If the department enters into a linkage agreement, and the linked jurisdictions do not amend their rules to synchronize with Washington's price ceiling established in (a) of this subsection, the department may amend its rules to synchronize Washington's price ceiling with those of the linked jurisdictions. The price ceiling may not be set at a level below the ceiling specified in (a) of this subsection unless the director of the department determines that an amendment to the price ceiling is necessary in order to enter into a linkage agreement.
(2) In the event that no allowances remain in the allowance price containment reserve, the department must issue the number of price ceiling units for sale sufficient to provide cost protection for covered entities as established under subsection (1) of this section. Purchases must be limited to entities that do not have sufficient eligible compliance instruments in their holding and compliance accounts for the current compliance period and these entities may only purchase what they need to meet their compliance obligation for the current compliance period. Price ceiling units may not be sold or transferred and must be retired for compliance in the current compliance period. A price ceiling unit is not a property right.
(3) The price ceiling unit emission reduction investment account is created in the state treasury. All receipts from the sale of price ceiling units must be deposited in the account. Moneys in the account may only be spent after appropriation. Moneys in the account must be expended to achieve emissions reductions on at least a metric ton for metric ton basis that are real, permanent, quantifiable, verifiable, enforceable by the state, and in addition to any greenhouse gas emission reduction otherwise required by law or regulation and any other greenhouse gas emission reduction that otherwise would occur.
[ 2025 c 320 s 7; 2022 c 181 s 7; 2021 c 316 s 18.]

catchline: Price ceiling.


title: RCW 70A.65.170

text:
(1) The department shall adopt by rule the protocols for establishing offset projects and generating offset credits that may be used to meet a portion of a covered or opt-in entity's compliance obligation under this chapter. The protocols adopted by the department under this section must align with the policies of the state established under RCW 70A.45.090 and 70A.45.100.
(2) Offset projects must:
(a) Provide direct environmental benefits to the state or be located in a jurisdiction with which Washington has entered into a linkage agreement;
(b) Result in greenhouse gas reductions or removals that:
(i) Are real, permanent, quantifiable, verifiable, and enforceable; and
(ii) Are in addition to greenhouse gas emission reductions or removals otherwise required by law and other greenhouse gas emission reductions or removals that would otherwise occur; and
(c) Have been certified by a recognized registry.
(3)(a) A total of no more than five percent of a covered or opt-in entity's compliance obligation during the first compliance period may be met by transferring offset credits, regardless of whether or not the offset project is located on federally recognized tribal land. During these years, at least 50 percent of a covered or opt-in entity's compliance obligation satisfied by offset credits must be sourced from offset projects that provide direct environmental benefits in the state.
(b) A total of no more than four percent of a covered or opt-in entity's compliance obligation during the second compliance period may be met by transferring offset credits, regardless of whether or not the offset project is located on federally recognized tribal land. During these years, at least 75 percent of a covered or opt-in entity's compliance obligation satisfied by offset credits must be sourced from offset projects that provide direct environmental benefits in the state. The department may reduce the 75 percent requirement if it determines there is not sufficient offset supply in the state to meet offset demand during the second compliance period.
(c) The limits in (a) and (b) of this subsection may be modified by rule as adopted by the department when appropriate to ensure achievement of the proportionate share of statewide emissions limits established in RCW 70A.45.020 and to provide for alignment with other jurisdictions to which the state has linked.
(d) The limits in (a) and (b) of this subsection may be reduced for a specific covered or opt-in entity if the department determines, in consultation with the environmental justice council, that the covered or opt-in entity has or is likely to:
(i) Contribute substantively to cumulative air pollution burden in an overburdened community as determined by criteria established by the department, in consultation with the environmental justice council; or
(ii) Violate any permits required by any federal, state, or local air pollution control agency where the violation may result in an increase in emissions.
(e) In addition to the offset credit limits described in (a) and (b) of this subsection:
(i) No more than an additional three percent of a covered or opt-in entity's compliance obligation may be met by transferring offset credits from projects on federally recognized tribal land during the first compliance period.
(ii) No more than an additional two percent of a covered or opt-in entity's compliance obligation may be met by transferring offset credits from projects on federally recognized tribal land during the second compliance period.
(4) In adopting protocols governing offset projects and covered and opt-in entities' use of offset credits, the department shall:
(a) Take into consideration standards, rules, or protocols for offset projects and offset credits established by other states, provinces, and countries with programs comparable to the program established in this chapter;
(b) Take into consideration forest practices rules where a project is located, or applicable best management practices established by federal, state, or local governments that relate to forest management;
(c) Encourage opportunities for the development of offset projects in this state by adopting offset protocols that may include, but need not be limited to, protocols that make use of aggregation or other mechanisms to reduce transaction costs related to the development of offset projects and that support the development of carbon dioxide removal projects;
(d) Adopt a process for monitoring and invalidating offset credits as necessary to ensure the credit reflects emission reductions or removals that continue to meet the standards required by subsection (1) of this section. If an offset credit is invalidated, the covered or opt-in entity must, within six months of the invalidation, transfer replacement credits or allowances to meet its compliance obligation. Failure to transfer the required credits or allowances is a violation subject to penalties as provided in RCW 70A.65.200; and
(e) Make use of aggregation or other mechanisms, including cost-effective inventory and monitoring provisions, to increase the development of offset and carbon removal projects by landowners across the broadest possible variety of types and sizes of lands, including lands owned by small forestland owners.
(5) Any offset credits used must:
(a) Not be in addition to or allow for an increase in the emissions limits established under RCW 70A.45.020, as reflected in the annual allowance budgets developed under RCW 70A.65.070;
(b) Have been issued for reporting periods wholly after July 25, 2021, or within two years prior to July 25, 2021; and
(c) For offset credits issued by a jurisdiction with which Washington has entered into a linkage agreement, come from offset projects located in Washington or in the linked jurisdiction.
(6) The offset credit must be registered and tracked as a compliance instrument.
(7) Beginning in 2031, the limits established in subsection (3)(b) and (e)(ii) of this section apply unless modified by rule as adopted by the department after a public consultation process.
[ 2024 c 352 s 7; 2022 c 181 s 12; 2021 c 316 s 19.]
Notes:
Contingent effective date—2024 c 352: See note following RCW 70A.65.010.

catchline: Offsets.


title: RCW 70A.65.180

text:
(1) In order to ensure that a sufficient number of high quality offset projects are available under the limits set in RCW 70A.65.170, the department must establish an assistance program for offset projects on federally recognized tribal lands in Washington. The assistance may include, but is not limited to, funding or consultation for federally recognized tribal governments to assess a project's technical feasibility, investment requirements, development and operational costs, expected returns, administrative and legal hurdles, and project risks and pitfalls. The department may provide funding or assistance upon request by a federally recognized tribe.
(2) It is the intent of the legislature that not less than $5,000,000 be provided in the biennial omnibus operating appropriations act for the purposes of this section.
[ 2021 c 316 s 20.]

catchline: Assistance program for offsets on tribal lands.


title: RCW 70A.65.200

text:
(1)(a) All covered and opt-in entities are required to submit compliance instruments in a timely manner to meet the entities' compliance obligations and shall comply with all requirements for monitoring, reporting, holding, and transferring emission allowances and other provisions of this chapter.
(b) In addition to the penalty provisions of this section, a seller of any combination of gasoline, diesel, biodiesel, or propane fuel must meet the requirements of RCW 39.26.267 in order to be eligible to receive any contract awarded by the state, any state agency, or any municipality.
(2) If a covered or opt-in entity does not submit sufficient compliance instruments to meet its compliance obligation by the specified transfer dates, a penalty of four allowances for every one compliance instrument that is missing must be submitted to the department within six months. When a covered entity or opt-in entity reasonably believes that it will be unable to meet a compliance obligation, the entity shall immediately notify the department. Upon receiving notification, the department shall issue an order requiring the entity to submit the penalty allowances.
(3) If a covered entity or opt-in entity fails to submit penalty allowances as required by subsection (2) of this section, the department must issue an order or issue a penalty of up to $10,000 per day per violation, or both, for failure to submit penalty allowances as required by subsection (2) of the section. The order may include a plan and schedule for coming into compliance.
(4) The department may issue a penalty of up to $50,000 per day per violation for violations of RCW 70A.65.100(8) (a) through (e).
(5) Except as provided in subsections (3) and (4) of this section, any person that violates the terms of this chapter or an order issued under this chapter incurs a penalty of up to $10,000 per day per violation for each day that the person does not comply. All penalties under subsections (3) and (4) of this section and this subsection must be deposited into the climate investment account created in *RCW 70A.65.250.
(6) Orders and penalties issued under this chapter are appealable to the pollution control hearings board under chapter 43.21B RCW.
(7) Until the department enters into a linkage agreement or until the end of the first compliance period, whichever is sooner, the department may reduce the amount of the penalty by adjusting the monetary amount or the number of penalty allowances described in subsections (2) and (3) of this section.
(8) An electric utility or natural gas utility must notify its retail customers and the environmental justice council in published form within three months of paying a monetary penalty under this section.
(9)(a) No city, town, county, township, or other subdivision or municipal corporation of the state may implement a charge or tax based exclusively upon the quantity of greenhouse gas emissions.
(b) No state agency may adopt or enforce a greenhouse gas pricing or market-based emissions cap and reduce program for stationary sources, or adopt or enforce emission limitations on greenhouse gas emissions from stationary sources except as:
(i) Provided in this chapter;
(ii) Authorized or directed by a state statute in effect as of July 1, 2022; or
(iii) Required to implement a federal statute, rule, or program.
(c) This chapter preempts the provisions of chapter 173-442 WAC, and the department shall repeal chapter 173-442 WAC.
[ 2026 c 251 s 5; 2024 c 352 s 8; 2022 c 181 s 4; 2021 c 316 s 23.]
Notes:
*Reviser's note: RCW 70A.65.250 was repealed by 2026 c 219 s 21, effective July 1, 2027.
Intent—Findings—2026 c 251: See note following RCW 70A.65.080.
Contingent effective date—2024 c 352: See note following RCW 70A.65.010.
PDF
RCW 70A.65.200
Enforcement—Penalty. (Effective July 1, 2027.)
(1)(a) All covered and opt-in entities are required to submit compliance instruments in a timely manner to meet the entities' compliance obligations and shall comply with all requirements for monitoring, reporting, holding, and transferring emission allowances and other provisions of this chapter.
(b) In addition to the penalty provisions of this section, a seller of any combination of gasoline, diesel, biodiesel, or propane fuel must meet the requirements of RCW 39.26.267 in order to be eligible to receive any contract awarded by the state, any state agency, or any municipality.
(2) If a covered or opt-in entity does not submit sufficient compliance instruments to meet its compliance obligation by the specified transfer dates, a penalty of four allowances for every one compliance instrument that is missing must be submitted to the department within six months. When a covered entity or opt-in entity reasonably believes that it will be unable to meet a compliance obligation, the entity shall immediately notify the department. Upon receiving notification, the department shall issue an order requiring the entity to submit the penalty allowances.
(3) If a covered entity or opt-in entity fails to submit penalty allowances as required by subsection (2) of this section, the department must issue an order or issue a penalty of up to $10,000 per day per violation, or both, for failure to submit penalty allowances as required by subsection (2) of the section. The order may include a plan and schedule for coming into compliance.
(4) The department may issue a penalty of up to $50,000 per day per violation for violations of RCW 70A.65.100(8) (a) through (e).
(5) Except as provided in subsections (3) and (4) of this section, any person that violates the terms of this chapter or an order issued under this chapter incurs a penalty of up to $10,000 per day per violation for each day that the person does not comply. All penalties under subsections (3) and (4) of this section and this subsection must be deposited into the climate commitment act operating account created in RCW 70A.65.410.
(6) Orders and penalties issued under this chapter are appealable to the pollution control hearings board under chapter 43.21B RCW.
(7) Until the department enters into a linkage agreement or until the end of the first compliance period, whichever is sooner, the department may reduce the amount of the penalty by adjusting the monetary amount or the number of penalty allowances described in subsections (2) and (3) of this section.
(8) An electric utility or natural gas utility must notify its retail customers and the environmental justice council in published form within three months of paying a monetary penalty under this section.
(9)(a) No city, town, county, township, or other subdivision or municipal corporation of the state may implement a charge or tax based exclusively upon the quantity of greenhouse gas emissions.
(b) No state agency may adopt or enforce a greenhouse gas pricing or market-based emissions cap and reduce program for stationary sources, or adopt or enforce emission limitations on greenhouse gas emissions from stationary sources except as:
(i) Provided in this chapter;
(ii) Authorized or directed by a state statute in effect as of July 1, 2022; or
(iii) Required to implement a federal statute, rule, or program.
(c) This chapter preempts the provisions of chapter 173-442 WAC, and the department shall repeal chapter 173-442 WAC.
[ 2026 c 251 s 5; 2026 c 219 s 12; 2024 c 352 s 8; 2022 c 181 s 4; 2021 c 316 s 23.]
Notes:
Reviser's note: This section was amended by 2026 c 219 s 12 and by 2026 c 251 s 5, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Intent—Findings—2026 c 251: See note following RCW 70A.65.080.
Effective date—2026 c 219: See note following RCW 70A.65.410.
Contingent effective date—2024 c 352: See note following RCW 70A.65.010.

catchline: Enforcement—Penalty. (Effective until July 1, 2027.)


title: RCW 70A.65.210

text:
(1) Subject to making the findings and conducting the public comment process described in subsection (3) of this section, the department shall seek to enter into linkage agreements with other jurisdictions with external greenhouse gas emissions trading programs in order to:
(a) Allow for the mutual use and recognition of compliance instruments issued by Washington and other linked jurisdictions;
(b) Broaden the greenhouse gas emission reduction opportunities to reduce the costs of compliance on covered entities and consumers;
(c) Enable allowance auctions to be held jointly and provide for the use of a unified tracking system for compliance instruments;
(d) Enhance market security;
(e) Reduce program administration costs; and
(f) Provide consistent requirements for covered entities whose operations span jurisdictional boundaries.
(2) The director of the department is authorized to execute linkage agreements with other jurisdictions with external greenhouse gas emissions trading programs consistent with the requirements in this chapter. A linkage agreement must cover the following:
(a) Provisions relating to regular, periodic auctions, including requirements for eligibility for auction participation, the use of a single auction provider to facilitate joint auctions, publication of auction-related information, processes for auction participation, purchase limits by auction participant type, bidding processes, dates of auctions, and financial requirements;
(b) Provisions related to holding limits to ensure no entities in any of the programs are disadvantaged relative to their counterparts in the other jurisdictions;
(c) Other requirements, such as greenhouse gas reporting and verification, offset protocols, criteria and process, and supervision and enforcement, to prevent fraud, abuse, and market manipulation;
(d) Common program registry, electronic auction platform, tracking systems for compliance instruments, and monitoring of compliance instruments;
(e) Provisions to ensure coordinated administrative and technical support;
(f) Provisions for public notice and participation; and
(g) Provisions to collectively resolve differences, amend the agreements, and delink or otherwise withdraw from the agreements.
(3) Before entering into a linkage agreement under this section, the department must evaluate and make a finding regarding whether the aggregate number of unused allowances in a linked program would reduce the stringency of Washington's program and the state's ability to achieve its greenhouse gas emissions reduction limits. The department must include in its evaluation a consideration of pre-2020 unused allowances that may exist in the program with which it is proposing to link. Before entering into a linkage agreement, the department must also establish a finding that the linking jurisdiction and the linkage agreement meet certain criteria identified under this subsection and conduct a public comment process to obtain input and a review of the linkage agreement by relevant stakeholders and other interested parties. The department must consider input received from the public comment process before finalizing a linkage agreement. In the event that the department determines that a full linkage agreement is unlikely to meet the criteria, it may enter into a linkage agreement with limitations, including limits on the share of compliance that may be met with allowances originating from linked jurisdictions and other limitations deemed necessary by the department. A linkage agreement approved by the department must:
(a) Achieve the purposes identified in subsection (1) of this section;
(b) Ensure that the linking jurisdiction has provisions to ensure the distribution of benefits from the program to vulnerable populations and overburdened communities;
(c) Be determined by the department to not yield net adverse impacts to either jurisdictions' highly impacted communities or analogous communities in the aggregate, relative to the baseline level of emissions; and
(d) Not adversely impact Washington's ability to achieve the emission reduction limits established in RCW 70A.45.020.
(4) Before entering a linkage agreement, the department must post and maintain on its website, and provide notification to the appropriate policy and fiscal committees of the legislature, a quarterly status update regarding any potential linkage agreement that the department has determined to seek to enter into under this section. The status report must include:
(a) An outline of the expected steps that the department expects that it and linked jurisdictions will need to take prior to entering into a linkage agreement, including the requirements of subsection (3) of this section;
(b) Notation of any steps completed or initiated under (a) of this subsection; and
(c) An estimate of the time frames of possible completion for any steps identified under (a) of this subsection that have not yet been completed.
(5) The state retains all legal and policy-making authority over its program design and enforcement.
[ 2024 c 352 s 9; 2021 c 316 s 24.]
Notes:
Contingent effective date—2024 c 352: See note following RCW 70A.65.010.

catchline: Linkage with other jurisdictions.


title: RCW 70A.65.220

text:
The department shall adopt rules to implement the provisions of the program established in RCW 70A.65.060 through 70A.65.210. The department may adopt emergency rules pursuant to RCW 34.05.350 for initial implementation of the program, to implement the state omnibus appropriations act for the 2021-2023 fiscal biennium, and to ensure that reporting and other program requirements are determined early for the purpose of program design and early notice to registered entities with a compliance obligation under the program.
[ 2021 c 316 s 25.]

catchline: Adoption of rules.


title: RCW 70A.65.230

text:
(1) It is the intent of the legislature that each year the total investments made through the carbon emissions reduction account created in RCW 70A.65.240, the climate commitment account created in RCW 70A.65.260, the natural climate solutions account created in RCW 70A.65.270, and the air quality and health disparities improvement account created in RCW 70A.65.280, achieve the following:
(a) A minimum of not less than 35 percent and a goal of 40 percent of total investments that provide direct and meaningful benefits to vulnerable populations within the boundaries of overburdened communities identified under chapter 70A.02 RCW; and
(b) In addition to the requirements of (a) of this subsection, a minimum of not less than 10 percent of total investments that are used for programs, activities, or projects formally supported by a resolution of an Indian tribe, with priority given to otherwise qualifying projects directly administered or proposed by an Indian tribe. An investment that meets the requirements of both this subsection (1)(b) and (a) of this subsection may count toward the minimum percentage targets for both subsections.
(2) The expenditure of moneys under this chapter must be consistent with applicable federal, state, and local laws, and treaty rights including, but not limited to, prohibitions on uses of funds imposed by the state Constitution.
(3) For the purposes of this section, "benefits" means investments or activities that:
(a) Reduce vulnerable population characteristics, environmental burdens, or associated risks that contribute significantly to the cumulative impact designation of overburdened communities;
(b) Meaningfully protect an overburdened community from, or support community response to, the impacts of air pollution or climate change; or
(c) Meet a community need identified by vulnerable members of the overburdened community that is consistent with the intent of this chapter.
(4) The state must develop a process by which to evaluate the impacts of the investments made under this chapter, work across state agencies to develop and track priorities across the different eligible funding categories, and work with the environmental justice council pursuant to RCW 70A.65.040.
[ 2025 c 417 s 806. Prior: 2022 c 182 s 426; 2022 c 181 s 8; 2021 c 316 s 26.]
Notes:
Effective date—2025 c 417 ss 801, 802, and 804-807: See note following RCW 43.84.092.
Findings—Intent—2025 c 417: See note following RCW 82.38.030.
Intent—Effective date—2022 c 182: See notes following RCW 70A.65.240.
PDF
RCW 70A.65.230
Investments—Legislative intent. (Effective July 1, 2027.)
(1) It is the intent of the legislature that each biennium the total investments made through the climate commitment act transportation account created in RCW 70A.65.240, the climate commitment act operating account created in RCW 70A.65.410, the climate commitment act capital account created in RCW 70A.65.420, and the air quality and health disparities improvement account created in RCW 70A.65.280, achieve the following:
(a) A minimum of not less than 35 percent and a goal of 40 percent of total investments that provide direct and meaningful benefits to vulnerable populations within the boundaries of overburdened communities identified under chapter 70A.02 RCW; and
(b) In addition to the requirements of (a) of this subsection, a minimum of not less than 10 percent of total investments that are used for programs, activities, or projects supported by an Indian tribe, with priority given to otherwise qualifying projects directly administered or proposed by an Indian tribe. Investments that meet the requirement of this subsection (1)(b) may include a letter of support from an Indian tribe, funding provided to or requested by an Indian tribe, a formal resolution of an Indian tribe, or similar expressions of support from an Indian tribe. An investment that meets the requirements of both this subsection (1)(b) and (a) of this subsection may count toward the minimum percentage targets for both subsections.
(2) The expenditure of moneys under this chapter must be consistent with applicable federal, state, and local laws, and treaty rights including, but not limited to, prohibitions on uses of funds imposed by the state Constitution.
(3) For the purposes of this section, "benefits" means investments or activities that:
(a) Reduce vulnerable population characteristics, environmental burdens, or associated risks that contribute significantly to the cumulative impact designation of overburdened communities;
(b) Meaningfully protect an overburdened community from, or support community response to, the impacts of air pollution or climate change; or
(c) Meet a community need identified by vulnerable members of the overburdened community that is consistent with the intent of this chapter.
[ 2026 c 219 s 4; 2025 c 417 s 806. Prior: 2022 c 182 s 426; 2022 c 181 s 8; 2021 c 316 s 26.]
Notes:
Effective date—2026 c 219: See note following RCW 70A.65.410.
Effective date—2025 c 417 ss 801, 802, and 804-807: See note following RCW 43.84.092.
Findings—Intent—2025 c 417: See note following RCW 82.38.030.
Intent—Effective date—2022 c 182: See notes following RCW 70A.65.240.

catchline: Investments—Legislative intent—Evaluation. (Effective until July 1, 2027.)


title: RCW 70A.65.240

text:
(1) The carbon emissions reduction account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account are intended to affect reductions in transportation sector carbon emissions through a variety of carbon reducing investments. These can include, but are not limited to: Transportation alternatives to single-occupancy passenger vehicles; reductions in single-occupancy passenger vehicle miles traveled; reductions in per mile emissions in vehicles, including through the funding of alternative fuel infrastructure and incentive programs; and emission reduction programs for freight transportation, including motor vehicles and rail, as well as for ferries and other maritime and port activities. Expenditures from the account may only be made for transportation carbon emission reducing purposes and may not be made for highway purposes authorized under the 18th Amendment of the Washington state Constitution, other than specified in this section, and shall be made in accordance with subsection (2) of this section. It is the legislature's intent that expenditures from the account used to reduce carbon emissions be made with the goal of achieving equity for communities that historically have been omitted or adversely impacted by past transportation policies and practices.
(2) Appropriations in an omnibus transportation appropriations act from the carbon emissions reduction account shall be made exclusively to fund the following activities:
(a) Active transportation;
(b) Transit programs and projects;
(c) Alternative fuel and electrification;
(d) Ferries; and
(e) Rail.
[ 2022 c 182 s 101; 2021 c 316 s 27.]
Notes:
Residual balance of funds from climate transit programs account, climate active transportation account—2025 c 417: "Any residual balance of funds remaining in the climate transit programs account or the climate active transportation account on June 30, 2025, shall be transferred by the state treasurer to the carbon emissions reduction account." [ 2025 c 417 s 807.]
Intent—2022 c 182: "The legislature intends that $500,000,000 of the amounts in the 16-year move ahead WA investment program must enhance stormwater runoff treatment from existing roads and infrastructure with an emphasis on green infrastructure retrofits. Projects must be prioritized based on benefits to salmon recovery and ecosystem health, reducing toxic pollution, addressing health disparities, and cost effectiveness. The department of transportation must submit progress reports on its efforts to reduce the toxicity of stormwater runoff from existing infrastructure, recommendations for addressing barriers to innovative solutions, and anticipated demand for funding each biennium." [ 2022 c 182 s 1.]
Effective date—2022 c 182: "Sections 1, 101 through 105, 201 through 204, 211, 301 through 312, 401 through 407, 415 through 420, 422, 423, 425 through 439, and 505 of this act take effect July 1, 2022." [ 2022 c 182 s 511.]
PDF
RCW 70A.65.240
Climate commitment act transportation account. (Effective July 1, 2027.)
(1) The climate commitment act transportation account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account are intended to affect reductions in transportation sector carbon emissions through a variety of carbon reducing investments. These can include, but are not limited to: Transportation alternatives to single-occupancy passenger vehicles; reductions in single-occupancy passenger vehicle miles traveled; reductions in per mile emissions in vehicles, including through the funding of alternative fuel infrastructure and incentive programs; and emission reduction programs for freight transportation, including motor vehicles and rail, as well as for ferries and other maritime and port activities. Expenditures from the account may only be made for transportation carbon emission reducing purposes and may not be made for highway purposes authorized under the 18th Amendment of the Washington state Constitution, other than specified in this section, and shall be made in accordance with subsection (2) of this section. It is the legislature's intent that expenditures from the account used to reduce carbon emissions be made with the goal of achieving equity for communities that historically have been omitted or adversely impacted by past transportation policies and practices.
(2) Appropriations in an omnibus transportation appropriations act from the climate commitment act transportation account shall be made exclusively to fund the following activities:
(a) Active transportation;
(b) Transit programs and projects;
(c) Alternative fuel and electrification;
(d) Ferries; and
(e) Rail.
[ 2026 c 219 s 16; 2022 c 182 s 101; 2021 c 316 s 27.]
Notes:
Effective date—2026 c 219: See note following RCW 70A.65.410.
Residual balance of funds from climate transit programs account, climate active transportation account—2025 c 417: "Any residual balance of funds remaining in the climate transit programs account or the climate active transportation account on June 30, 2025, shall be transferred by the state treasurer to the carbon emissions reduction account." [ 2025 c 417 s 807.]
Intent—2022 c 182: "The legislature intends that $500,000,000 of the amounts in the 16-year move ahead WA investment program must enhance stormwater runoff treatment from existing roads and infrastructure with an emphasis on green infrastructure retrofits. Projects must be prioritized based on benefits to salmon recovery and ecosystem health, reducing toxic pollution, addressing health disparities, and cost effectiveness. The department of transportation must submit progress reports on its efforts to reduce the toxicity of stormwater runoff from existing infrastructure, recommendations for addressing barriers to innovative solutions, and anticipated demand for funding each biennium." [ 2022 c 182 s 1.]
Effective date—2022 c 182: "Sections 1, 101 through 105, 201 through 204, 211, 301 through 312, 401 through 407, 415 through 420, 422, 423, 425 through 439, and 505 of this act take effect July 1, 2022." [ 2022 c 182 s 511.]

catchline: Carbon emissions reduction account. (Effective until July 1, 2027.)


title: RCW 70A.65.250

text:
(1)(a) The climate investment account is created in the state treasury. Except as otherwise provided in chapter 316, Laws of 2021, all receipts from the auction of allowances authorized in this chapter must be deposited into the account. Moneys in the account may be spent only after appropriation.
(b) Projects or activities funded from the account must meet high labor standards, including family sustaining wages, providing benefits including health care and employer-contributed retirement plans, career development opportunities, and maximize access to economic benefits from such projects for local workers and diverse businesses. Each contracting entity's proposal must be reviewed for equity and opportunity improvement efforts, including: (i) Employer paid sick leave programs; (ii) pay practices in relation to living wage indicators such as the federal poverty level; (iii) efforts to evaluate pay equity based on gender identity, race, and other protected status under Washington law; (iv) facilitating career development opportunities, such as apprenticeship programs, internships, job-shadowing, and on-the-job training; and (v) employment assistance and employment barriers for justice affected individuals.
(2) Moneys in the account may be used only for projects and programs that achieve the purposes of the greenhouse gas emissions cap and invest program established under this chapter and for tribal capacity grants under RCW 70A.65.305. During the 2023-2025 fiscal biennium, moneys in the account may also be used for tribal capacity grant activities supporting climate resilience and adaptation, developing tribal clean energy projects, applying for state or federal grant funding, and other related work; and for providing payments to agricultural fuel purchasers. During the 2025-2027 fiscal biennium, moneys in the account may also be used for tribal capacity grant activities supporting climate resilience and adaptation, developing tribal clean energy projects, applying for state or federal grant funding, and other related work. Moneys in the account as described in this subsection must first be appropriated for the administration of the requirements of this chapter, in an amount not to exceed five percent of the total receipt of funds from allowance auction proceeds under this chapter. Beginning July 1, 2023, and annually thereafter, the state treasurer shall distribute funds in the account that exceed the amounts appropriated for the purposes of this subsection (2) as follows:
(a) Seventy-five percent of the moneys to the climate commitment account created in RCW 70A.65.260; and
(b) Twenty-five percent of the moneys to the natural climate solutions account created in RCW 70A.65.270.
(3) The allocations specified in subsection (2)(a) and (b) of this section must be reviewed by the legislature on a biennial basis based on the changing needs of the state in meeting its clean economy and greenhouse gas reduction goals in a timely, economically advantageous, and equitable manner.
(4) During the 2023-2025 and 2025-2027 fiscal biennia, the legislature may direct the state treasurer to make transfers of moneys in the climate investment account to the carbon emissions reduction account, the climate commitment account, and the natural climate solutions account.
[ 2025 c 424 s 973; 2024 c 376 s 911. Prior: 2023 c 475 s 938; 2023 c 435 s 12; 2022 c 253 s 2; 2021 c 316 s 28.]
Notes:
Climate commitment act accounts transfer—2026 c 219: See note following RCW 70A.65.420.
Effective date—2025 c 424: See note following RCW 9.46.100.
Effective date—2024 c 376: See note following RCW 43.101.200.
Effective date—2023 c 475: See note following RCW 16.76.030.
Effective date—2023 c 435: See note following RCW 43.79.570.

catchline: Climate investment account. (Effective until July 1, 2027.)


title: RCW 70A.65.260

text:
(1) The climate commitment account is created in the state treasury. The account must receive moneys distributed to the account from the climate investment account created in *RCW 70A.65.250. Moneys in the account may be spent only after appropriation. Projects, activities, and programs eligible for funding from the account must be physically located in Washington state and include, but are not limited to, the following:
(a) Implementing the working families' tax credit in RCW 82.08.0206;
(b) Supplementing the growth management planning and environmental review fund established in RCW 36.70A.490 for the purpose of making grants or loans to local governments for the purposes set forth in RCW 43.21C.240, 43.21C.031, 36.70A.500, and 36.70A.600, for costs associated with RCW 36.70A.610, and to cover costs associated with the adoption of optional elements of comprehensive plans consistent with RCW 43.21C.420;
(c) Programs, activities, or projects that reduce and mitigate impacts from greenhouse gases and copollutants in overburdened communities, including strengthening the air quality monitoring network to measure, track, and better understand air pollution levels and trends and to inform the analysis, monitoring, and pollution reduction measures required in RCW 70A.65.020;
(d) Programs, activities, or projects that deploy renewable energy resources, such as solar and wind power, and projects to deploy distributed generation, energy storage, demand-side technologies and strategies, and other grid modernization projects;
(e) Programs, activities, or projects that increase the energy efficiency or reduce greenhouse gas emissions of industrial facilities including, but not limited to, proposals to implement combined heat and power, district energy, or on-site renewables, such as solar and wind power, to upgrade the energy efficiency of existing equipment, to reduce process emissions, and to switch to less emissions intensive fuel sources;
(f) Programs, activities, or projects that achieve energy efficiency or emissions reductions in the agricultural sector including:
(i) Fertilizer management;
(ii) Soil management;
(iii) Bioenergy;
(iv) Biofuels;
(v) Grants, rebates, and other financial incentives for agricultural harvesting equipment, heavy duty trucks, agricultural pump engines, tractors, and other equipment used in agricultural operations;
(vi) Grants, loans, or any financial incentives to food processors to implement projects that reduce greenhouse gas emissions;
(vii) Renewable energy projects;
(viii) Farmworker housing weatherization programs;
(ix) Dairy digester research and development;
(x) Alternative manure management; and
(xi) Eligible fund uses under RCW 89.08.615;
(g) Programs, activities, or projects that increase energy efficiency in new and existing buildings, or that promote low carbon architecture, including use of newly emerging alternative building materials that result in a lower carbon footprint in the built environment over the life cycle of the building and component building materials;
(h) Programs, activities, or projects that promote the electrification and decarbonization of new and existing buildings, including residential, commercial, and industrial buildings;
(i) Programs, activities, or projects that improve energy efficiency, including district energy, and investments in market transformation of high efficiency electric appliances and equipment for space and water heating;
(j) Clean energy transition and assistance programs, activities, or projects that assist affected workers or people with lower incomes during the transition to a clean energy economy, or grow and expand clean manufacturing capacity in communities across Washington state including, but not limited to:
(i) Programs, activities, or projects that directly improve energy affordability and reduce the energy burden of people with lower incomes, as well as the higher transportation fuel burden of rural residents, such as bill assistance, energy efficiency, and weatherization programs;
(ii) Community renewable energy projects that allow qualifying participants to own or receive the benefits of those projects at reduced or no cost;
(iii) Programs, activities, or other worker-support projects for bargaining unit and nonsupervisory fossil fuel workers who are affected by the transition away from fossil fuels to a clean energy economy. Worker support may include, but is not limited to: (A) Full wage replacement, health benefits, and pension contributions for every worker within five years of retirement; (B) full wage replacement, health benefits, and pension contributions for every worker with at least one year of service for each year of service up to five years of service; (C) wage insurance for up to five years for workers reemployed who have more than five years of service; (D) up to two years of retraining costs, including tuition and related costs, based on in-state community and technical college costs; (E) peer counseling services during transition; (F) employment placement services, prioritizing employment in the clean energy sector; and (G) relocation expenses;
(iv) Direct investment in workforce development, via technical education, community college, institutions of higher education, apprenticeships, and other programs including, but not limited to:
(A) Initiatives to develop a forest health workforce established under RCW 76.04.521; and
(B) Initiatives to develop new education programs, emerging fields, or jobs pertaining to the clean energy economy;
(v) Transportation, municipal service delivery, and technology investments that increase a community's capacity for clean manufacturing, with an emphasis on communities in greatest need of job creation and economic development and potential for commute reduction;
(k) Programs, activities, or projects that reduce emissions from landfills and waste-to-energy facilities through diversion of organic materials, methane capture or conversion strategies, installation of gas collection devices and gas control systems, monitoring and reporting of methane emissions, or other means, prioritizing funding needed for any activities by local governments to comply with chapter 70A.540 RCW;
(l) Carbon dioxide removal projects, programs, and activities; and
(m) Activities to support efforts to mitigate and adapt to the effects of climate change affecting Indian tribes, including capital investments in support of the relocation of Indian tribes located in areas at heightened risk due to anticipated sea level rise, flooding, or other disturbances caused by climate change. The legislature intends to dedicate at least $50,000,000 per biennium from the account for purposes of this subsection.
(2) Moneys in the account may not be used for projects or activities that would violate tribal treaty rights or result in significant long-term damage to critical habitat or ecological functions. Investments from this account must result in long-term environmental benefits and increased resilience to the impacts of climate change.
(3) During the 2023-2025 and 2025-2027 fiscal biennia, the legislature may appropriate moneys from the climate commitment account for activities related to environmental justice, including implementation of chapter 314, Laws of 2021.
(4) During the 2025-2027 fiscal biennium, the legislature may direct the state treasurer to make transfers of money in the climate commitment account to the natural climate solutions account.
(5) During the 2027-2029 fiscal biennium, the legislature intends to direct the state treasurer to make transfers of money in the pension surplus holding account to the climate commitment account in the amount of $539,000,000.
[ 2026 c 268 s 935; 2025 c 424 s 974; 2023 c 475 s 939; 2022 c 179 s 17; 2021 c 316 s 29.]
Notes:
*Reviser's note: RCW 70A.65.250 was repealed by 2026 c 219 s 21, effective July 1, 2027.
Effective date—2026 c 268: See note following RCW 28B.15.210.
Climate commitment act accounts transfer—2026 c 219: See note following RCW 70A.65.420.
Effective date—2025 c 424: See note following RCW 9.46.100.
Effective date—2023 c 475: See note following RCW 16.76.030.

catchline: Climate commitment account. (Effective until July 1, 2027.)


title: RCW 70A.65.270

text:
(1) The natural climate solutions account is created in the state treasury. All moneys directed to the account from the climate investment account created in RCW 70A.65.250 must be deposited in the account. Moneys in the account may be spent only after appropriation. Moneys in the account are intended to increase the resilience of the state's waters, forests, and other vital ecosystems to the impacts of climate change, conserve working forestlands at risk of conversion, and increase their carbon pollution reduction capacity through sequestration, storage, and overall system integrity. Moneys in the account must be spent in a manner that is consistent with existing and future assessments of climate risks and resilience from the scientific community and expressed concerns of and impacts to overburdened communities.
(2) Moneys in the account may be allocated for the following purposes:
(a) Clean water investments that improve resilience from climate impacts. Funding under this subsection (2)(a) must be used to:
(i) Restore and protect estuaries, fisheries, and marine shoreline habitats and prepare for sea level rise including, but not limited to, making fish passage correction investments such as those identified in the cost-share barrier removal program for small forestland owners created in RCW 76.13.150 and those that are considered by the fish passage barrier removal board created in RCW 77.95.160;
(ii) Increase carbon storage in the ocean or aquatic and coastal ecosystems;
(iii) Increase the ability to remediate and adapt to the impacts of ocean acidification;
(iv) Reduce flood risk and restore natural floodplain ecological function;
(v) Increase the sustainable supply of water and improve aquatic habitat, including groundwater mapping and modeling;
(vi) Improve infrastructure treating stormwater from previously developed areas within an urban growth boundary designated under chapter 36.70A RCW, with a preference given to projects that use green stormwater infrastructure;
(vii) Either preserve or increase, or both, carbon sequestration and storage benefits in forests, forested wetlands, agricultural soils, tidally influenced agricultural or grazing lands, or freshwater, saltwater, or brackish aquatic lands; or
(viii) Either preserve or establish, or both, carbon sequestration by protecting or planting trees in marine shorelines and freshwater riparian areas sufficient to promote climate resilience, protect cold water fisheries, and achieve water quality standards;
(b) Healthy forest investments to improve resilience from climate impacts. Funding under this subsection (2)(b) must be used for projects and activities that will:
(i) Increase forest and community resilience to wildfire in the face of increased seasonal temperatures and drought;
(ii) Improve forest health and reduce vulnerability to changes in hydrology, insect infestation, and other impacts of climate change; or
(iii) Prevent emissions by preserving natural and working lands from the threat of conversion to development or loss of critical habitat, through actions that include, but are not limited to, the creation of new conservation lands, community forests, or increased support to small forestland owners through assistance programs including, but not limited to, the forest riparian easement program and the family forest fish passage program. It is the intent of the legislature that not less than $10,000,000 be expended each biennium for the forestry riparian easement program created in chapter 76.13 RCW or for riparian easement projects funded under the agricultural conservation easements program established under RCW 89.08.530, or similar riparian enhancement programs.
(3) Moneys in the account may not be used for projects that would violate tribal treaty rights or result in significant long-term damage to critical habitat or ecological functions. Investments from this account must result in long-term environmental benefits and increased resilience to the impacts of climate change.
[ 2021 c 316 s 30.]
Notes:
Climate commitment act accounts transfer—2026 c 219: See note following RCW 70A.65.420.

catchline: Natural climate solutions account. (Effective until July 1, 2027.)


title: RCW 70A.65.280

text:
(1) The air quality and health disparities improvement account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account are intended to:
(a) Improve air quality through the reduction of criteria pollutants, including through effective air quality monitoring and the establishment of adequate baseline emissions data; and
(b) Reduce health disparities in overburdened communities by improving health outcomes through the reduction or elimination of environmental harms and the promotion of environmental benefits.
(2) Moneys in the account may be used for either capital budget or transportation budget purposes, or both. Moneys in the account may not be used for projects that would violate tribal treaty rights or result in significant long-term damage to critical habitat or ecological functions. Investments from the account must result in long-term environmental benefits and increased resilience to the impacts of climate change.
(3) It is the intent of the legislature that not less than $20,000,000 per biennium be dedicated to the account for the purposes of the account.
[ 2021 c 316 s 31.]
PDF
RCW 70A.65.280
Air quality and health disparities improvement account. (Effective July 1, 2027.)
(1) The air quality and health disparities improvement account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account are intended to:
(a) Improve air quality through the reduction of criteria pollutants, including through effective air quality monitoring and the establishment of adequate baseline emissions data; and
(b) Reduce health disparities in overburdened communities by improving health outcomes through the reduction or elimination of environmental harms and the promotion of environmental benefits.
(2) Moneys in the account may be used for operating budget, capital budget, or transportation budget purposes. Moneys in the account may not be used for projects that would violate tribal treaty rights or result in significant long-term damage to critical habitat or ecological functions. Investments from the account must result in long-term environmental benefits and increased resilience to the impacts of climate change.
[ 2026 c 219 s 5; 2021 c 316 s 31.]
Notes:
Effective date—2026 c 219: See note following RCW 70A.65.410.

catchline: Air quality and health disparities improvement account. (Effective until July 1, 2027.)


title: RCW 70A.65.290

text:
(1) By December 1, 2029, the joint legislative audit and review committee must analyze the impacts of the initial five years of 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 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 a 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 that are covered entities. The categories of industries assessed must include, but are not limited to, electric utilities, natural gas utilities, oil refineries, and other industries classified as emissions-intensive and trade-exposed;
(b) An evaluation of the information provided by the department in its 2027 program evaluation under RCW 70A.65.070(3);
(c) A summary of the estimated total statewide costs and benefits attributable to the program, including state agency administrative costs and covered 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 program; and
(d) An evaluation of the impacts of the program on low-income households.
(2) This section expires June 30, 2030.
[ 2021 c 316 s 32.]

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