Fuels/climate commitment act

AN ACT Relating to climate commitment act compliance obligations 1
for fuels supplied or otherwise sold into Washington; amending RCW 2
70A.65.080, 70A.15.2200, and 70A.65.090; creating a new section; and 3
declaring an emergency. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. (1) The legislature finds that the climate 6
commitment act currently exempts from a compliance obligation fuels 7
supplied in an amount below 25,000 metric tons of associated carbon 8
dioxide equivalent annually. In establishing this exemption, it was 9
never the intent of the legislature to put large fuel suppliers at a 10
competitive disadvantage in the fuel supply marketplace relative to 11
other fuel suppliers. However, the legislature finds that current 12
trends in the fuel supply market indicate that the existing structure 13
for assigning compliance obligations may establish incentives that 14
lead to actions being taken by market participants that undercut 15
principles of fair competition in the fuel supply market.16
(2) So that the program created by this act does not create 17
uneven economic conditions for businesses in Washington, it is the 18
intent of the legislature that: 19
(a) The climate commitment act's assignment of compliance 20
obligations associated with fuels ensure that there is a covered 21
H-2649.2
HOUSE BILL 2215
State of Washington 69th Legislature 2026 Regular Session
By Representatives Fitzgibbon, Doglio, Ryu, Parshley, Peterson,
Berry, Reed, Street, Duerr, Thomas, Ormsby, Goodman, Hill, and Pollet
Prefiled 12/30/25. Read first time 01/12/26. Referred to Committee
on Environment & Energy.
p. 1 HB 2215
entity associated with all fuel supplied or otherwise produced, 1
imported, or delivered in Washington, except in de minimis volumes of 2
below 500 metric tons of carbon dioxide equivalent annually; and3
(b) The department of ecology should seek to enforce the 4
requirements of the climate commitment act as they pertain to fuel 5
suppliers equally and even-handedly throughout Washington, including 6
with respect to different types of covered entities and in all 7
geographic regions of the state, including in overburdened 8
communities. 9
Sec. 2. RCW 70A.65.080 and 2025 c 282 s 2 are each amended to 10
read as follows: 11
(1) A person is a covered entity as of the beginning of the first 12
compliance period and all subsequent compliance periods if the person 13
reported emissions under RCW 70A.15.2200 for any calendar year from 14
2015 through 2019, or if additional data provided as required by this 15
chapter indicates that emissions for any calendar year from 2015 16
through 2019 equaled or exceeded any of the following thresholds, or 17
if the person is a first jurisdictional deliverer and imports 18
electricity into the state during the compliance period:19
(a) Where the person owns or operates a facility and the 20
facility's emissions equal or exceed 25,000 metric tons of carbon 21
dioxide equivalent; 22
(b) Where the person is a first jurisdictional deliverer and 23
generates electricity in the state and emissions associated with this 24
generation equals or exceeds 25,000 metric tons of carbon dioxide 25
equivalent; 26
(c)(i) Where the person is a first jurisdictional deliverer 27
importing electricity into the state and: 28
(A) For specified sources, the cumulative annual total of 29
emissions associated with the imported electricity exceeds 25,000 30
metric tons of carbon dioxide equivalent; 31
(B) For unspecified sources, the cumulative annual total of 32
emissions associated with the imported electricity exceeds 0 metric 33
tons of carbon dioxide equivalent; or 34
(C) For electricity purchased from a federal power marketing 35
administration pursuant to section 5 (b) of the Pacific Northwest 36
electric power planning and conservation act of 1980, P.L. 96-501, if 37
the department determines such electricity is not from a specified 38
source, the cumulative annual total of emissions associated with the 39
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imported electricity exceeds 25,000 metric tons of carbon dioxide 1
equivalent. 2
(ii) In consultation with any linked jurisdiction to the program 3
created by this chapter, by October 1, 2026, the department, in 4
consultation with the department of commerce and the utilities and 5
transportation commission, shall adopt by rule a methodology for 6
addressing imported electricity associated with a centralized 7
electricity market; 8
(d) Where the person is a supplier of fossil fuel other than 9
natural gas and from that fuel 25,000 metric tons or more of carbon 10
dioxide equivalent emissions would result from the full combustion or 11
oxidation, excluding the amounts for fuel products that are produced 12
or imported with a documented final point of delivery outside of 13
Washington and combusted outside of Washington; and14
(e)(i) Where the person supplies natural gas in amounts that 15
would result in exceeding 25,000 metric tons of carbon dioxide 16
equivalent emissions if fully combusted or oxidized, excluding the 17
amounts for fuel products that are produced or imported with a 18
documented final point of delivery outside of Washington and 19
combusted outside of Washington, and excluding the amounts: (A) 20
Supplied to covered entities under (a) through (d) of this 21
subsection; and (B) delivered to opt-in entities; 22
(ii) Where the person who is not a natural gas company and has a 23
tariff with a natural gas company to deliver to an end-use customer 24
in the state in amounts that would result in exceeding 25,000 metric 25
tons of carbon dioxide equivalent emissions if fully combusted or 26
oxidized, excluding the amounts: (A) Supplied to covered entities 27
under (a) through (d) of this subsection; and (B) the amounts 28
delivered to opt-in entities; 29
(iii) Where the person is an end-use customer in the state who 30
directly purchases natural gas from a person that is not a natural 31
gas company and has the natural gas delivered through an interstate 32
pipeline to a distribution system owned by the purchaser in amounts 33
that would result in exceeding 25,000 metric tons of carbon dioxide 34
equivalent emissions if fully combusted or oxidized, excluding the 35
amounts: (A) Supplied to covered entities under (a) through (d) of 36
this subsection; and (B) delivered to opt-in entities.37
(2)(a) A person is a covered entity as of the beginning of the 38
second compliance period and all subsequent compliance periods if 39
((the)):40
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(i) The person reported emissions under RCW 70A.15.2200 or 1
provided emissions data as required by this chapter for any calendar 2
year from 2023 through 2025, where the person owns or operates a 3
waste to energy facility utilized by a county and city solid waste 4
management program and the facility's emissions equal or exceed 5
25,000 metric tons of carbon dioxide equivalent;6
(ii) Except as provided in (b) of this subsection, the person is 7
a supplier of gasoline, diesel, biodiesel, or propane or any 8
combination thereof, and from that fuel 500 metric tons or more of 9
carbon dioxide equivalent emissions would result from the full 10
combustion or oxidation of that fuel in a calendar year, excluding 11
the amounts for fuel products that are produced or imported with a 12
documented final point of delivery outside of Washington and 13
combusted outside of Washington; or14
(iii) The person is a purchaser of fuel sold to the person by a 15
seller that produces, imports, or delivers in Washington any 16
combination of gasoline, diesel, biodiesel, or propane, or any 17
combination thereof, and the seller of fuel is a business that is not 18
registered as a supplier or other covered entity with the department, 19
and from the fuel purchased by the person in a single calendar year 20
500 metric tons or more of carbon dioxide equivalent emissions would 21
result from the full combustion or oxidation of the purchased fuel.22
(b) The department may, by rule, lower the 500 metric ton 23
threshold specified in (a)(ii) and (iii) of this subsection if 24
practicable and if necessary to ensure the achievement of the goals 25
of this chapter or eliminate significant distortions in the fuel 26
supply marketplace. 27
(3) A person is a covered entity as of the beginning of the third 28
compliance period, and all subsequent compliance periods if the 29
person reported emissions under RCW 70A.15.2200 or provided emissions 30
data as required by this chapter for 2027 or 2028, where the person 31
owns or operates a railroad company, as that term is defined in RCW 32
81.04.010, and the railroad company's emissions equal or exceed 33
25,000 metric tons of carbon dioxide equivalent. 34
(4) When a covered entity reports, during a compliance period, 35
emissions from a facility under RCW 70A.15.2200 that are below the 36
thresholds specified in subsection (1) or (2) of this section, the 37
covered entity continues to have a compliance obligation through the 38
current compliance period. When a covered entity reports emissions 39
below the threshold for each year during an entire compliance period, 40
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or has ceased all processes at the facility requiring reporting under 1
RCW 70A.15.2200, the entity is no longer a covered entity as of the 2
beginning of the subsequent compliance period unless the department 3
provides notice at least 12 months before the end of the compliance 4
period that the facility's emissions were within 10 percent of the 5
threshold and that the person will continue to be designated as a 6
covered entity in order to ensure equity among all covered entities. 7
Whenever a covered entity ceases to be a covered entity, the 8
department shall notify the appropriate policy and fiscal committees 9
of the legislature of the name of the entity and the reason the 10
entity is no longer a covered entity. 11
(5) For types of emission sources described in subsection (1) of 12
this section that begin or modify operation after January 1, 2023, 13
and types of emission sources described in subsection (2) of this 14
section that begin or modify operation after 2027, coverage under the 15
program starts in the calendar year in which emissions from the 16
source exceed the applicable thresholds in subsection (1) or (2) of 17
this section, or upon formal notice from the department that the 18
source is expected to exceed the applicable emissions threshold, 19
whichever happens first. Sources meeting these conditions are 20
required to transfer their first allowances on the first transfer 21
deadline of the year following the year in which their emissions were 22
equal to or exceeded the emissions threshold. 23
(6) For emission sources described in subsection (1) of this 24
section that are in operation or otherwise active between 2015 and 25
2019 but were not required to report emissions for those years under 26
RCW 70A.15.2200 for the reporting periods between 2015 and 2019, 27
coverage under the program starts in the calendar year following the 28
year in which emissions from the source exceed the applicable 29
thresholds in subsection (1) of this section as reported pursuant to 30
RCW 70A.15.2200 or provided as required by this chapter, or upon 31
formal notice from the department that the source is expected to 32
exceed the applicable emissions threshold for the first year that 33
source is required to report emissions, whichever happens first. 34
Sources meeting these criteria are required to transfer their first 35
allowances on the first transfer deadline of the year following the 36
year in which their emissions, as reported under RCW 70A.15.2200 or 37
provided as required by this chapter, were equal to or exceeded the 38
emissions threshold. 39
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(7) The following emissions are exempt from coverage in the 1
program, regardless of the emissions reported under RCW 70A.15.2200 2
or provided as required by this chapter: 3
(a) Emissions from the combustion of aviation fuels;4
(b) Emissions from watercraft fuels supplied in Washington that 5
are combusted outside of Washington; 6
(c) Emissions from a coal-fired electric generation facility 7
exempted from additional greenhouse gas limitations, requirements, or 8
performance standards under RCW 80.80.110; 9
(d) Carbon dioxide emissions from the combustion of biomass or 10
biofuels; 11
(e)(i) Motor vehicle fuel or special fuel that is used 12
exclusively for agricultural purposes by a farm fuel user. This 13
exemption is available only if a buyer of motor vehicle fuel or 14
special fuel provides the seller with an exemption certificate in a 15
form and manner prescribed by the department. Prior to January 1, 16
2030, this exemption is available whether motor vehicle fuel or 17
special fuel is used to propel a motor vehicle or not, but beginning 18
January 1, 2030, this exemption only applies to motor vehicle fuel or 19
special fuel that the farm fuel user uses to propel a motor vehicle.20
(ii) The department must determine a method for expanding the 21
exemption provided under (e)(i) of this subsection to include fuels 22
used for the purpose of transporting agricultural products on public 23
highways. The department must maintain this expanded exemption until 24
December 31, 2029, in order to provide the agricultural sector with a 25
feasible transition period. 26
(iii) For the purposes of this subsection: 27
(A) "Agricultural purposes" and "farm fuel user" have the same 28
meanings as provided in RCW 82.08.865; 29
(B) "Motor vehicle fuel" means gasoline, the chief use of which 30
is as a fuel for the propulsion of motor vehicles or vessels; and31
(C) "Special fuel" means diesel, liquefied petroleum gas (also 32
called propane), and biodiesel; 33
(f) Emissions from facilities with North American industry 34
classification system code 92811 (national security); and35
(g) Emissions from municipal solid waste landfills that are 36
subject to, and in compliance with, chapter 70A.540 RCW.37
(8) The department shall not require multiple covered entities to 38
have a compliance obligation for the same emissions. The department 39
may by rule authorize refineries, fuel suppliers, facilities using 40
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natural gas, and natural gas utilities to provide by agreement for 1
the assumption of the compliance obligation for fuel or natural gas 2
supplied and combusted in the state. The department must be notified 3
of such an agreement at least 12 months prior to the compliance 4
obligation period for which the agreement is applicable.5
(9)(a) The legislature intends to promote a growing and 6
sustainable economy and to avoid leakage of emissions from 7
manufacturing to other locations. The legislature further intends to 8
see innovative new businesses locate and grow in Washington that 9
contribute to Washington's prosperity and environmental objectives.10
(b) Consistent with the intent of the legislature to avoid the 11
leakage of emissions to other jurisdictions, in achieving the state's 12
greenhouse gas limits in RCW 70A.45.020, the state, including lead 13
agencies under chapter 43.21C RCW, shall pursue the limits in a 14
manner that recognizes that the siting and placement of new or 15
expanded best-in-class facilities with lower carbon emitting 16
processes is in the economic and environmental interests of the state 17
of Washington. 18
(c) In conducting a life-cycle analysis, if required, for new or 19
expanded facilities that require review under chapter 43.21C RCW, a 20
lead agency must evaluate and attribute any potential net cumulative 21
greenhouse gas emissions resulting from the project as compared to 22
other existing facilities or best available technology including 23
best-in-class facilities and emerging lower carbon processes that 24
supply the same product or end use. The department may adopt rules to 25
determine the appropriate threshold for applying this analysis.26
(d) Covered emissions from an entity that is or will be a covered 27
entity under this chapter may not be the basis for denial of a permit 28
for a new or expanded facility. Covered emissions must be included in 29
the analysis undertaken pursuant to (c) of this subsection. Nothing 30
in this subsection requires a lead agency or a permitting agency to 31
approve or issue a permit to a permit applicant, including to a new 32
or expanded fossil fuel project. 33
(e) A lead agency under chapter 43.21C RCW or a permitting agency 34
shall allow a new or expanded facility that is a covered entity or 35
opt-in entity to satisfy a mitigation requirement for its covered 36
emissions under this chapter and under any greenhouse gas emission 37
mitigation requirements for covered emissions under chapter 43.21C 38
RCW by submitting to the department the number of compliance 39
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instruments equivalent to its covered emissions during a compliance 1
period. 2
Sec. 3. RCW 70A.15.2200 and 2025 c 320 s 3 are each amended to 3
read as follows: 4
(1) The board of any activated authority or the department, may 5
classify air contaminant sources, by ordinance, resolution, rule or 6
regulation, which in its judgment may cause or contribute to air 7
pollution, according to levels and types of emissions and other 8
characteristics which cause or contribute to air pollution, and may 9
require registration or reporting or both for any such class or 10
classes. Classifications made pursuant to this section may be for 11
application to the area of jurisdiction of such authority, or the 12
state as a whole or to any designated area within the jurisdiction, 13
and shall be made with special reference to effects on health, 14
economic and social factors, and physical effects on property.15
(2) Except as provided in subsection (3) of this section, any 16
person operating or responsible for the operation of air contaminant 17
sources of any class for which the ordinances, resolutions, rules or 18
regulations of the department or board of the authority, require 19
registration or reporting shall register therewith and make reports 20
containing information as may be required by such department or board 21
concerning location, size and height of contaminant outlets, 22
processes employed, nature of the contaminant emission and such other 23
information as is relevant to air pollution and available or 24
reasonably capable of being assembled. In the case of emissions of 25
greenhouse gases as defined in RCW 70A.45.010 the department shall 26
adopt rules requiring reporting of those emissions. The department or 27
board may require that such registration or reporting be accompanied 28
by a fee, and may determine the amount of such fee for such class or 29
classes: PROVIDED, That the amount of the fee shall only be to 30
compensate for the costs of administering such registration or 31
reporting program which shall be defined as initial registration and 32
annual or other periodic reports from the source owner providing 33
information directly related to air pollution registration, on-site 34
inspections necessary to verify compliance with registration 35
requirements, data storage and retrieval systems necessary for 36
support of the registration program, emission inventory reports and 37
emission reduction credits computed from information provided by 38
sources pursuant to registration program requirements, staff review, 39
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including engineering or other reliable analysis for accuracy and 1
currentness, of information provided by sources pursuant to 2
registration program requirements, clerical and other office support 3
provided in direct furtherance of the registration program, and 4
administrative support provided in directly carrying out the 5
registration program: PROVIDED FURTHER, That any such registration 6
made with either the board or the department shall preclude a further 7
registration and reporting with any other board or the department, 8
except that emissions of greenhouse gases as defined in RCW 9
70A.45.010 must be reported as required under subsection (5) of this 10
section. 11
All registration program and reporting fees collected by the 12
department shall be deposited in the air pollution control account. 13
All registration program fees collected by the local air authorities 14
shall be deposited in their respective treasuries.15
(3) If a registration or report has been filed for a grain 16
warehouse or grain elevator as required under this section, 17
registration, reporting, or a registration program fee shall not, 18
after January 1, 1997, again be required under this section for the 19
warehouse or elevator unless the capacity of the warehouse or 20
elevator as listed as part of the license issued for the facility has 21
been increased since the date the registration or reporting was last 22
made. If the capacity of the warehouse or elevator listed as part of 23
the license is increased, any registration or reporting required for 24
the warehouse or elevator under this section must be made by the date 25
the warehouse or elevator receives grain from the first harvest 26
season that occurs after the increase in its capacity is listed in 27
the license. 28
This subsection does not apply to a grain warehouse or grain 29
elevator if the warehouse or elevator handles more than 10,000,000 30
bushels of grain annually. 31
(4) For the purposes of subsection (3) of this section:32
(a) A "grain warehouse" or "grain elevator" is an establishment 33
classified in standard industrial classification (SIC) code 5153 for 34
wholesale trade for which a license is required and includes, but is 35
not limited to, such a licensed facility that also conducts cleaning 36
operations for grain; 37
(b) A "license" is a license issued by the department of 38
agriculture licensing a facility as a grain warehouse or grain 39
elevator under chapter 22.09 RCW or a license issued by the federal 40
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government licensing a facility as a grain warehouse or grain 1
elevator for purposes similar to those of licensure for the facility 2
under chapter 22.09 RCW; and 3
(c) "Grain" means a grain or a pulse. 4
(5)(a) The department shall adopt rules requiring persons to 5
report emissions of greenhouse gases as defined in RCW 70A.45.010 6
where those emissions from a single facility, ((or from fossil fuels 7
sold in Washington by a single supplier or local distribution 8
company,)) meet or exceed 10,000 metric tons of carbon dioxide 9
equivalent annually , or from fossil fuels specified in RCW 10
70A.65.080(2)(a) sold in Washington by a single person specified in 11
RCW 70A.65.080(2)(a)(ii) or purchased in Washington by a single 12
person specified in RCW 70A.65.080(2)(a)(iii), where those emissions 13
meet or exceed the threshold specified in RCW 70A.65.080(2)(a) for 14
such persons. The department's rules may also require electric power 15
entities to report emissions of greenhouse gases from all electricity 16
that is purchased, sold, imported, exported, or exchanged in 17
Washington. To the extent practicable, the department's rules must 18
seek to minimize reporting burdens through the utilization of 19
existing reports and disclosures for electric power entities who 20
report greenhouse gas emissions that equal 10,000 metric tons of 21
carbon dioxide equivalent or less annually from all electricity that 22
is purchased, sold, imported, exported, or exchanged in Washington. 23
The rules adopted by the department must support implementation of 24
the program created in RCW 70A.65.060. In addition, the rules must 25
require that: 26
(i) Emissions of greenhouse gases resulting from the combustion 27
of fossil fuels be reported separately from emissions of greenhouse 28
gases resulting from the combustion of biomass; and29
(ii)(A) Except as provided in (a)(ii)(B) of this subsection, each 30
annual report must include emissions data for the preceding calendar 31
year and must be submitted to the department by March 31st of the 32
year in which the report is due, except for an electric power entity, 33
which must submit its report by June 1st of the year in which the 34
report is due; 35
(B) To ensure that the program created in chapter 70A.65 RCW 36
remains implementable and capable of fulfilling a linkage agreement 37
under RCW 70A.65.210, if the department determines that timely 38
reporting under this section is infeasible due to actions 39
attributable to a third party upon whom the agency relies to collect 40
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emissions data from entities required to report including, but not 1
limited to, the United States environmental protection agency, the 2
department may, by rule, including emergency rule, require any 3
greenhouse gas emissions reports for emissions in any combination of 4
the years 2024 through 2030 to be submitted at an alternate date of 5
no later than June 1, 2031. 6
(b)(i) The department may by rule include additional gases to the 7
definition of "greenhouse gas" in RCW 70A.45.010 only if the gas has 8
been designated as a greenhouse gas by the United States congress, by 9
the United States environmental protection agency, or included in 10
external greenhouse gas emission trading programs with which 11
Washington has linked pursuant to RCW 70A.65.210. Prior to including 12
additional gases to the definition of "greenhouse gas" in RCW 13
70A.45.010, the department shall notify the appropriate committees of 14
the legislature. 15
(ii) The department may by rule exempt persons who are required 16
to report greenhouse gas emissions to the United States environmental 17
protection agency and who emit less than 10,000 metric tons carbon 18
dioxide equivalent annually. 19
(iii) The department must establish greenhouse gas emission 20
reporting methodologies for persons who are required to report under 21
this section. The department's reporting methodologies must be 22
designed to address the needs of ensuring accuracy of reported 23
emissions and maintaining consistency over time, and may, to the 24
extent practicable, be similar to reporting methodologies of 25
jurisdictions with which Washington has entered into a linkage 26
agreement. 27
(iv) The department must establish a methodology for persons who 28
are not required to report under this section to voluntarily report 29
their greenhouse gas emissions. 30
(c) The department shall share any reporting information reported 31
to it with the local air authority in which the person reporting 32
under the rules adopted by the department operates.33
(d) The fee provisions in subsection (2) of this section apply to 34
reporting of emissions of greenhouse gases. Persons required to 35
report under (a) of this subsection who fail to report or pay the fee 36
required in subsection (2) of this section are subject to enforcement 37
penalties under this chapter. The department shall enforce the 38
reporting rule requirements. When a person that holds a compliance 39
obligation under RCW 70A.65.080 fails to submit an emissions data 40
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report or fails to obtain a positive emissions data verification 1
statement in accordance with (f)(ii) of this subsection, the 2
department may assign an emissions level for that person.3
(e) The energy facility site evaluation council shall, 4
simultaneously with the department, adopt rules that impose 5
greenhouse gas reporting requirements in site certifications on 6
owners or operators of a facility permitted by the energy facility 7
site evaluation council. The greenhouse gas reporting requirements 8
imposed by the energy facility site evaluation council must be the 9
same as the greenhouse gas reporting requirements imposed by the 10
department. The department shall share any information reported to it 11
from facilities permitted by the energy facility site evaluation 12
council with the council, including notice of a facility that has 13
failed to report as required. The energy facility site evaluation 14
council shall contract with the department to monitor the reporting 15
requirements adopted under this section. 16
(f)(i) The department must establish by rule the methods of 17
verifying the accuracy of emissions reports. 18
(ii) Verification requirements apply at a minimum to persons 19
required to report under (a) of this subsection with emissions that 20
equal or exceed 25,000 metric tons of carbon dioxide equivalent 21
emissions, including carbon dioxide from biomass-derived fuels, or to 22
persons who have a compliance obligation under RCW 70A.65.080 in any 23
year of the current compliance period. The department may adopt rules 24
to accept verification reports from another jurisdiction with a 25
linkage agreement pursuant to RCW 70A.65.180 in cases where the 26
department deems that the methods or procedures are substantively 27
similar. 28
(g)(i) The definitions in RCW 70A.45.010 apply throughout this 29
subsection (5) unless the context clearly requires otherwise.30
(ii) For the purpose of this subsection (5), the term "supplier" 31
includes: (A) Suppliers that produce, import, or deliver, or any 32
combination of producing, importing, or delivering, a quantity of 33
fuel products in Washington that, if completely combusted, oxidized, 34
or used in other processes, would result in the release of greenhouse 35
gases in Washington equivalent to or higher than the threshold 36
established under (a) of this subsection; and (B) suppliers of carbon 37
dioxide that produce, import, or deliver a quantity of carbon dioxide 38
in Washington that, if released, would result in emissions equivalent 39
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to or higher than the threshold established under (a) of this 1
subsection. 2
(iii) For the purpose of this subsection (5), the term "person" 3
includes: (A) An owner or operator of a facility; (B) a supplier; or 4
(C) an electric power entity. 5
(iv) For the purpose of this subsection (5), the term "facility" 6
includes facilities that directly emit greenhouse gases in Washington 7
equivalent to the threshold established under (a) of this subsection 8
with at least one source category listed in the United States 9
environmental protection agency's mandatory greenhouse gas reporting 10
regulation, 40 C.F.R. Part 98 Subparts C through II and RR through 11
UU, as adopted on April 25, 2011. 12
(v) For the purpose of this subsection (5), the term "electric 13
power entity" includes any of the following that supply electric 14
power in Washington with associated emissions of greenhouse gases 15
equal to or above the threshold established under (a) of this 16
subsection: (A) Electricity importers and exporters; (B) retail 17
providers, including multijurisdictional retail providers; and (C) 18
first jurisdictional deliverers, as defined in RCW 70A.65.010, not 19
otherwise included here. 20
Sec. 4. RCW 70A.65.090 and 2021 c 316 s 11 are each amended to 21
read as follows: 22
(1) All covered entities must register to participate in the 23
program, following procedures adopted by the department by rule.24
(2) Entities registering to participate in the program must 25
describe any direct or indirect affiliation with other registered 26
entities. 27
(3) A person responsible for greenhouse gas emissions that is not 28
a covered entity may voluntarily participate in the program by 29
registering as an opt-in entity. An opt-in entity must satisfy the 30
same registration requirements as covered entities. Once registered, 31
an opt-in entity is allowed to participate as a covered entity in 32
auctions and must assume the same compliance obligation to transfer 33
compliance instruments equal to their emissions at the appointed 34
transfer dates. An opt-in entity may opt out of the program at the 35
end of any compliance period by providing written notice to the 36
department at least six months prior to the end of the compliance 37
period. The opt-in entity continues to have a compliance obligation 38
through the current compliance period. An opt-in entity is not 39
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eligible to receive allowances directly distributed under RCW 1
70A.65.110, 70A.65.120, or 70A.65.130. 2
(4) A person that is not covered by the program and is not a 3
covered entity or opt-in entity may voluntarily participate in the 4
program as a general market participant. General market participants 5
must meet all applicable registration requirements specified by rule.6
(5) Federally recognized tribes and federal agencies may elect to 7
participate in the program as opt-in entities or general market 8
participants. 9
(6) The department shall use a secure, online electronic tracking 10
system to: Register entities in the state program; issue compliance 11
instruments; track ownership of compliance instruments; enable and 12
record compliance instrument transfers; facilitate program 13
compliance; and support market oversight. 14
(7) The department must use an electronic tracking system that 15
allows two accounts to each covered or opt-in entity:16
(a) A compliance account where the compliance instruments are 17
transferred to the department for retirement. Compliance instruments 18
in compliance accounts may not be sold, traded, or otherwise provided 19
to another account or person. 20
(b) A holding account that is used when a registered entity is 21
interested in trading allowances. Allowances in holding accounts may 22
be bought, sold, transferred to another registered entity, or traded. 23
The amount of allowances a registered entity may have in its holding 24
account is constrained by the holding limit as determined by the 25
department by rule. Information about the contents of each holding 26
account, including but not limited to the number of allowances in the 27
account, must be displayed on a regularly maintained and searchable 28
public website established and updated by the department.29
(8) Registered general market participants are each allowed an 30
account, to hold, trade, sell, or transfer allowances.31
(9) The department shall maintain an account for the purpose of 32
retiring allowances transferred by registered entities and from the 33
voluntary renewable reserve account. 34
(10) The department shall maintain a public roster of all covered 35
entities, opt-in entities, and general market participants on the 36
department's public website. The roster must specify the provision of 37
RCW 70A.65.080 (1), (2), or (3) under which each covered entity is 38
determined to be a covered entity.39
p. 14 HB 2215
(11) The department shall include a voluntary renewable reserve 1
account. 2
NEW SECTION. Sec. 5. This act is necessary for the immediate 3
preservation of the public peace, health, or safety, or support of 4
the state government and its existing public institutions, and takes 5
effect immediately.6
NEW SECTION. Sec. 6. If any provision of this act or its 7
application to any person or circumstance is held invalid, the 8
remainder of the act or the application of the provision to other 9
persons or circumstances is not affected.10
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p. 15 HB 2215