Climate commit. act accounts

AN ACT Relating to climate commitment act accounts; amending RCW 1
70A.65.100, 70A.65.230, 70A.65.280, 70A.65.300, 70A.65.040, 2
70A.65.060, 70A.65.200, 70A.65.305, 76.04.196, and 76.13.120; 3
reenacting and amending RCW 43.21B.300 and 70A.65.030; adding new 4
sections to chapter 70A.65 RCW; creating a new section; repealing RCW 5
70A.65.250, 70A.65.260, and 70A.65.270; and providing an effective 6
date. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8
NEW SECTION. Sec. 1. A new section is added to chapter 70A.65 9
RCW to read as follows: 10
(1) The climate commitment act operating account is created in 11
the state treasury. Receipts from the auction of allowances 12
authorized in this chapter must be deposited into the account as 13
provided in RCW 70A.65.100. Moneys in the account may be spent only 14
after appropriation. The legislature intends expenditures from the 15
account to supplement, not supplant, existing expenditures for 16
similar purposes. Expenditures from the account may be used only for 17
the following purposes: 18
(a) The department's costs to administer the program under this 19
chapter, in an amount not to exceed $25,000,000 per fiscal year 20
H-2685.2
HOUSE BILL 2251
State of Washington 69th Legislature 2026 Regular Session
By Representatives Fitzgibbon, Gregerson, Parshley, and Thomas
Prefiled 01/05/26. Read first time 01/12/26. Referred to Committee
on Appropriations.
p. 1 HB 2251
adjusted by the fiscal growth factor as defined in RCW 43.135.025, as 1
described in RCW 70A.65.100(7)(b); 2
(b) Programs, activities, and projects in the operating budget 3
that reduce greenhouse gas emissions, increase resilience to the 4
impacts of climate change, result in long-term environmental 5
benefits, or otherwise achieve the purposes of this chapter;6
(c) Tribal capacity grants for tribal consultation under RCW 7
70A.65.305 or tribal projects and activities related to climate 8
resilience and adaptation, clean energy, state or federal grant 9
funding applications, or other related work; 10
(d) The working families' tax credit in RCW 82.08.0206;11
(e) The same authorized uses as the growth management planning 12
and environmental review fund established in RCW 36.70A.490;13
(f) Reduction and mitigation of impacts from greenhouse gases and 14
copollutants in overburdened communities, including strengthening the 15
air quality monitoring network required in RCW 70A.65.020;16
(g) Projects or activities to promote electrification or reduce 17
the greenhouse gas emissions associated with electricity production, 18
distribution, or consumption, including (i) renewable energy 19
resources, such as solar and wind power, (ii) distributed generation, 20
(iii) energy storage, (iv) demand-side technologies and strategies, 21
and (v) grid modernization projects; 22
(h) Increased energy efficiency or reduced greenhouse gas 23
emissions for industrial facilities including, but not limited to, 24
combined heat and power, district energy, on-site renewables such as 25
solar and wind power, and less emissions-intensive fuel sources;26
(i) Increased energy efficiency or reduced greenhouse gas 27
emissions for the agricultural sector including, but not limited to, 28
fertilizer management, soil management, bioenergy, biofuels, grants 29
and other financial incentives for agricultural equipment or food 30
processing, renewable energy projects, farmworker housing 31
weatherization programs, dairy digester research and development, 32
alternative manure management, and the sustainable farms and fields 33
grant program under RCW 89.08.615; 34
(j) Increased energy efficiency or reduced greenhouse gas 35
emissions in new and existing residential, commercial, and industrial 36
buildings, including low carbon architecture, alternative building 37
materials that result in a lower carbon footprint over the life cycle 38
of the building and component building materials, electric 39
appliances, and equipment for space and water heating;40
p. 2 HB 2251
(k) The expansion of clean manufacturing capacity in communities 1
across Washington, including related community investments such as 2
transportation, municipal service delivery, and technology 3
investments, with an emphasis on communities in greatest need of job 4
creation and economic development and potential for commute 5
reduction; 6
(l) Improved energy affordability and reduced energy burden for 7
people with lower incomes, including bill assistance, energy 8
efficiency and weatherization programs, and community renewable 9
energy projects that allow qualifying participants to own or receive 10
the benefits of those projects at reduced or no cost;11
(m) Assistance for affected fossil fuel workers during the 12
transition to a clean energy economy, including (i) full wage 13
replacement, health benefits, and pension contributions for every 14
worker within five years of retirement; (ii) full wage replacement, 15
health benefits, and pension contributions for every worker with at 16
least one year of service for each year of service up to five years 17
of service; (iii) wage insurance for up to five years for workers 18
reemployed who have more than five years of service; (iv) up to two 19
years of retraining costs, including tuition and related costs, based 20
on in-state community and technical college costs; (v) peer 21
counseling services during transition; (vi) employment placement 22
services, prioritizing employment in the clean energy sector; (vii) 23
relocation expenses; and (viii) workforce development, including 24
forest health workforce initiatives under RCW 76.04.521 and education 25
or jobs related to the clean energy economy; 26
(n) Reduced emissions from landfills and waste-to-energy 27
facilities through diversion of organic materials, methane capture or 28
conversion strategies, installation of gas collection devices and gas 29
control systems, monitoring and reporting of methane emissions, or 30
other means, prioritizing funding needed for any activities by local 31
governments to comply with chapter 70A.540 RCW; 32
(o) Carbon dioxide removal; 33
(p) Activities to support efforts to mitigate and adapt to the 34
effects of climate change affecting Indian tribes;35
(q) Environmental justice activities, including implementation of 36
chapter 70A.02 RCW; 37
(r) Electric vehicles and related costs, such as equipment and 38
infrastructure, and alternative fuel; 39
p. 3 HB 2251
(s) Clean water investments that improve resilience from climate 1
impacts. Funding under this subsection (1)(s) must be used to:2
(i) Restore and protect estuaries, fisheries, and marine 3
shoreline habitats and prepare for sea level rise; 4
(ii) Increase carbon storage in the ocean or aquatic and coastal 5
ecosystems; 6
(iii) Increase the ability to remediate and adapt to the impacts 7
of ocean acidification; 8
(iv) Reduce flood risk and restore natural floodplain ecological 9
function; 10
(v) Increase the sustainable supply of water and improve aquatic 11
habitat, including groundwater mapping and modeling;12
(vi) Improve infrastructure treating stormwater from previously 13
developed areas within an urban growth boundary designated under 14
chapter 36.70A RCW, with a preference given to projects that use 15
green stormwater infrastructure; 16
(vii) Either preserve or increase, or both, greenhouse gas 17
sequestration and storage benefits in forests, forested wetlands, 18
agricultural soils, tidally influenced agricultural or grazing lands, 19
or freshwater, saltwater, or brackish aquatic lands; or20
(viii) Either preserve or establish, or both, greenhouse gas 21
sequestration by protecting or planting trees in marine shorelines 22
and freshwater riparian areas sufficient to promote climate 23
resilience, protect cold water fisheries, and achieve water quality 24
standards; and 25
(t) Healthy forest investments to improve resilience from climate 26
impacts, including but not limited to: (i) Increased forest and 27
community resilience to wildfire; and (ii) improved forest health, 28
including reduced vulnerability to changes in hydrology, insect 29
infestation, and other impacts of climate change. 30
(2) The legislature intends that at least 25 percent of the total 31
appropriations each biennium from this account and the climate 32
commitment act capital account created in section 2 of this act are 33
made for the purposes of the clean water and healthy forest 34
investments in subsection (1)(s) and (t) of this section or section 35
2(1) (m) and (n) of this act. 36
(3) Moneys in the account may not be used for projects or 37
activities that would violate tribal treaty rights or result in 38
significant long-term damage to critical habitat or ecological 39
functions. 40
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(4) Projects or activities funded from the account must meet high 1
labor standards, including: (a) Employer-paid sick leave programs and 2
other health care benefits; (b) employer-contributed retirement 3
plans; (c) pay practices in relation to living wage indicators, such 4
as the federal poverty level; (d) efforts to evaluate pay equity 5
based on gender identity, race, and other protected status under 6
Washington law; (e) career development opportunities, such as 7
apprenticeship programs, internships, job-shadowing, and on-the-job 8
training; and (f) employment assistance and employment barriers for 9
justice-affected individuals. 10
(5) Projects or activities funded from the account must maximize 11
access to economic benefits from such projects for local workers and 12
diverse businesses. 13
NEW SECTION. Sec. 2. A new section is added to chapter 70A.65 14
RCW to read as follows: 15
(1) The climate commitment act capital account is created in the 16
state treasury. Receipts from the auction of allowances authorized in 17
this chapter must be deposited into the account as provided in RCW 18
70A.65.100. Moneys in the account may be spent only after 19
appropriation. The legislature intends expenditures from the account 20
to supplement, not supplant, existing expenditures for similar 21
purposes. Expenditures from the account may be used only for the 22
following purposes: 23
(a) Programs, activities, and projects in the capital budget that 24
reduce greenhouse gas emissions, increase resilience to the impacts 25
of climate change, result in long-term environmental benefits, or 26
otherwise achieve the purposes of this chapter; 27
(b) Reduction and mitigation of impacts from greenhouse gases and 28
copollutants in overburdened communities, including strengthening the 29
air quality monitoring network required in RCW 70A.65.020;30
(c) Projects or activities to promote electrification or reduce 31
the greenhouse gas emissions associated with electricity production, 32
distribution, or consumption, including (i) renewable energy 33
resources, such as solar and wind power, (ii) distributed generation, 34
(iii) energy storage, (iv) demand-side technologies and strategies, 35
and (v) grid modernization projects; 36
(d) Increased energy efficiency or reduced greenhouse gas 37
emissions for industrial facilities including, but not limited to, 38
p. 5 HB 2251
combined heat and power, district energy, on-site renewables such as 1
solar and wind power, and less emissions-intensive fuel sources;2
(e) Increased energy efficiency or reduced greenhouse gas 3
emissions for the agricultural sector including, but not limited to, 4
fertilizer management, soil management, bioenergy, biofuels, grants 5
and other financial incentives for agricultural equipment or food 6
processing, renewable energy projects, farmworker housing 7
weatherization programs, dairy digester research and development, and 8
alternative manure management; 9
(f) Increased energy efficiency or reduced greenhouse gas 10
emissions in new and existing residential, commercial, and industrial 11
buildings, including low carbon architecture, alternative building 12
materials that result in a lower carbon footprint over the life cycle 13
of the building and component building materials, electric 14
appliances, and equipment for space and water heating;15
(g) The expansion of clean manufacturing capacity in communities 16
across Washington, including related community investments such as 17
transportation, municipal service delivery, and technology 18
investments, with an emphasis on communities in greatest need of job 19
creation and economic development and potential for commute 20
reduction; 21
(h) Improved energy affordability and reduced energy burden for 22
people with lower incomes, including energy efficiency and 23
weatherization programs, and community renewable energy projects that 24
allow qualifying participants to own or receive the benefits of those 25
projects at reduced or no cost; 26
(i) Reduced emissions from landfills and waste-to-energy 27
facilities through diversion of organic materials, methane capture or 28
conversion strategies, installation of gas collection devices and gas 29
control systems, monitoring and reporting of methane emissions, or 30
other means, prioritizing funding needed for any activities by local 31
governments to comply with chapter 70A.540 RCW; 32
(j) Carbon dioxide removal; 33
(k) Activities to support efforts to mitigate and adapt to the 34
effects of climate change affecting Indian tribes, including capital 35
investments in support of the relocation of Indian tribes located in 36
areas at heightened risk due to anticipated sea level rise, flooding, 37
or other disturbances caused by climate change. The legislature 38
intends to dedicate at least $50,000,000 per biennium from the 39
account for purposes of this subsection when the department's most 40
p. 6 HB 2251
recent baseline climate commitment act forecast projects 1
$1,000,000,000 or more for the biennium in total revenue to the 2
state. When the department's most recent baseline climate commitment 3
act forecast projects less than $1,000,000,000 for the biennium, the 4
legislature intends to dedicate at least five percent of total 5
projected revenue to the state for the biennium for the purposes of 6
this subsection; 7
(l) Electric vehicle infrastructure, including infrastructure in 8
buildings; 9
(m) Clean water investments that improve resilience from climate 10
impacts. Funding under this subsection (1)(m) must be used to:11
(i) Restore and protect estuaries, fisheries, and marine 12
shoreline habitats and prepare for sea level rise;13
(ii) Make fish passage correction investments, such as those 14
identified in the cost-share barrier removal program for small 15
forestland owners created in RCW 76.13.150 and those that are 16
considered by the fish passage barrier removal board created in RCW 17
77.95.160; 18
(iii) Increase carbon storage in the ocean or aquatic and coastal 19
ecosystems; 20
(iv) Increase the ability to mitigate, remediate, and adapt to 21
the impacts of ocean acidification; 22
(v) Reduce flood risk and restore natural floodplain ecological 23
function; 24
(vi) Increase the sustainable supply of water and improve aquatic 25
habitat, including groundwater mapping and modeling;26
(vii) Improve infrastructure treating stormwater from previously 27
developed areas within an urban growth boundary designated under 28
chapter 36.70A RCW, with a preference given to projects that use 29
green stormwater infrastructure; 30
(viii) Either preserve or increase, or both, greenhouse gas 31
sequestration and storage benefits in forests, forested wetlands, 32
agricultural soils, tidally influenced agricultural or grazing lands, 33
or freshwater, saltwater, or brackish aquatic lands; or34
(ix) Either preserve or establish, or both, greenhouse gas 35
sequestration by protecting or planting trees in marine shorelines 36
and freshwater riparian areas sufficient to promote climate 37
resilience, protect cold water fisheries, and achieve water quality 38
standards; 39
p. 7 HB 2251
(n) Healthy forest investments to improve resilience from climate 1
impacts. Funding under this subsection (1)(n) must be used for 2
projects that will: 3
(i) Increase forest and community resilience to wildfire in the 4
face of increased seasonal temperatures and drought;5
(ii) Improve forest health and reduce vulnerability to changes in 6
hydrology, insect infestation, and other impacts of climate change; 7
or 8
(iii) Prevent emissions by preserving natural and working lands 9
from the threat of conversion to development or loss of critical 10
habitat, through actions that include, but are not limited to, the 11
creation of new conservation lands, community forests, or increased 12
support to small forestland owners through assistance programs 13
including, but not limited to, the forest riparian easement program 14
and the family forest fish passage program. It is the intent of the 15
legislature that not less than $10,000,000 be expended each biennium 16
for the forestry riparian easement program created in chapter 76.13 17
RCW or for riparian easement projects funded under the agricultural 18
conservation easements program established under RCW 89.08.530, or 19
similar riparian enhancement programs when the department's most 20
recent baseline climate commitment act forecast projects 21
$1,000,000,000 or more for that biennium in total revenue to the 22
state. When the department's most recent baseline climate commitment 23
act forecast projects less than $1,000,000,000 for that biennium, the 24
legislature intends to dedicate at least one percent of total 25
projected revenue to the state for the biennium for the purposes of 26
the forestry riparian easement program and similar programs; and27
(o) Housing that reduces commute times and distances for low-28
income households. 29
(2) The legislature intends that at least 25 percent of the total 30
appropriations each biennium from this account and the climate 31
commitment act operating account created in section 1 of this act are 32
made for the purposes of the clean water and healthy forest 33
investments in subsection (1)(m) and (n) of this section and section 34
1(1) (s) and (t) of this act. 35
(3) Moneys in the account may not be used for projects or 36
activities that would violate tribal treaty rights or result in 37
significant long-term damage to critical habitat or ecological 38
functions. 39
p. 8 HB 2251
(4) Moneys in the account must be spent in a manner that is 1
consistent with scientific assessment of current and future climate 2
risks such as those encompassed in the state's current climate 3
resilience strategy developed under chapter 70A.05 RCW.4
Sec. 3. RCW 70A.65.100 and 2024 c 352 s 5 are each amended to 5
read as follows: 6
(1) Except as provided in RCW 70A.65.110, 70A.65.120, and 7
70A.65.130, the department shall distribute allowances through 8
auctions as provided in this section and in rules adopted by the 9
department to implement these sections. An allowance is not a 10
property right. 11
(2)(a) The department shall hold a maximum of four auctions 12
annually, plus any necessary reserve auctions. An auction may include 13
allowances from the annual allowance budget of the current year and 14
allowances from the annual allowance budgets from prior years that 15
remain to be distributed. The department must transmit to the 16
environmental justice council an auction notice at least 60 days 17
prior to each auction, as well as a summary results report and a 18
postauction public proceeds report within 60 days after each auction. 19
The department must communicate the results of the previous calendar 20
year's auctions to the environmental justice council on an annual 21
basis beginning in 2024. 22
(b) The department must make future vintage allowances available 23
through parallel auctions at least twice annually in addition to the 24
auctions through which current vintage allowances are exclusively 25
offered under (a) of this subsection. 26
(3) The department shall engage a qualified, independent 27
contractor to run the auctions. The department shall also engage a 28
qualified financial services administrator to hold the bid 29
guarantees, evaluate bid guarantees, and inform the department of the 30
value of bid guarantees once the bids are accepted.31
(4) Auctions are open to covered entities, opt-in entities, and 32
general market participants that are registered entities in good 33
standing. The department shall adopt by rule the requirements for a 34
registered entity to register and participate in a given auction.35
(a) Registered entities intending to participate in an auction 36
must submit an application to participate at least 30 days prior to 37
the auction. The application must include the documentation required 38
for review and approval by the department. A registered entity is 39
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eligible to participate only after receiving a notice of approval by 1
the department. 2
(b) Each registered entity that elects to participate in the 3
auction must have a different representative. Only a representative 4
with an approved auction account is authorized to access the auction 5
platform to submit an application or confirm the intent to bid for 6
the registered entity, submit bids on behalf of the registered entity 7
during the bidding window, or to download reports specific to the 8
auction. 9
(5) The department may require a bid guarantee, payable to the 10
financial services administrator, in an amount greater than or equal 11
to the sum of the maximum value of the bids to be submitted by the 12
registered entity. 13
(6) To protect the integrity of the auctions, a registered entity 14
or group of registered entities with a direct corporate association 15
are subject to auction purchase and holding limits. The department 16
may impose additional limits if it deems necessary to protect the 17
integrity and functioning of the auctions: 18
(a) A covered entity or an opt-in entity may not buy more than 25 19
percent of the allowances offered during a single auction;20
(b) A general market participant may not buy more than four 21
percent of the allowances offered during a single auction;22
(c) Until Washington links with a jurisdiction that does not have 23
this requirement, a general market participant may not in aggregate 24
own more than 10 percent of total allowances to be issued in a 25
calendar year; 26
(d) No registered entity may buy more than the entity's bid 27
guarantee; and 28
(e) No registered entity may buy allowances that would exceed the 29
entity's holding limit at the time of the auction.30
(7)(((a) For fiscal year 2023, upon completion and verification 31
of the auction results, the financial services administrator shall 32
notify winning bidders and transfer the auction proceeds to the state 33
treasurer for deposit as follows: (i) $127,341,000 must first be 34
deposited into the carbon emissions reduction account created in RCW 35
70A.65.240; and (ii) the remaining auction proceeds to the climate 36
investment account created in RCW 70A.65.250 and the air quality and 37
health disparities improvement account created in RCW 70A.65.280.38
(b) For fiscal year 2024, upon completion and verification of the 39
auction results, the financial services administrator shall notify 40
p. 10 HB 2251
winning bidders and transfer the auction proceeds to the state 1
treasurer for deposit as follows: (i) $356,697,000 must first be 2
deposited into the carbon emissions reduction account created in RCW 3
70A.65.240, except during fiscal year 2024, the deposit as provided 4
in this subsection (7)(b)(i) may be prorated equally across each of 5
the auctions occurring in fiscal year 2024; and (ii) the remaining 6
auction proceeds to the climate investment account created in RCW 7
70A.65.250 and the air quality and health disparities improvement 8
account created in RCW 70A.65.280, which may be prorated equally 9
across each of the auctions occurring in fiscal year 2024.10
(c) For fiscal year 2025, upon completion and verification of the 11
auction results, the financial services administrator shall notify 12
winning bidders and transfer the auction proceeds to the state 13
treasurer for deposit as follows: (i) $366,558,000 must first be 14
deposited into the carbon emissions reduction account created in RCW 15
70A.65.240, except that during fiscal year 2025, the deposit as 16
provided in this subsection (7)(c)(i) may be prorated equally across 17
each of the auctions occurring in fiscal year 2025; and (ii) the 18
remaining auction proceeds to the climate investment account created 19
in RCW 70A.65.250 and the air quality and health disparities 20
improvement account created in RCW 70A.65.280, which may be prorated 21
equally across each of the auctions occurring in fiscal year 2025.22
(d) For fiscal years 2026 through 2037, upon )) Upon completion 23
and verification of the results of each auction ((results)), the 24
financial services administrator shall notify winning bidders and 25
transfer the auction proceeds to the state treasurer for deposit as 26
follows: 27
(a) During a fiscal year in which, as of the first auction of 28
that fiscal year, the department's most recent baseline climate 29
commitment act forecast projects total revenue to the state for that 30
fiscal year of $513,117,000 or more: (i) $359,117,000 per year must 31
first be deposited into the carbon emissions reduction account 32
created in RCW 70A.65.240; ((and)) (ii) ((the remaining auction 33
proceeds to the climate investment account created in RCW 70A.65.250 34
and the air quality and health disparities improvement account 35
created in RCW 70A.65.280.36
(e) The deposits into the carbon emissions reduction account 37
pursuant to (a) through (d) of this subsection must not exceed 38
$5,200,000,000 over the first 16 fiscal years and any remaining 39
auction proceeds must be deposited into the climate investment 40
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account created in RCW 70A.65.250 and the air quality and health 1
disparities improvement account created in RCW 70A.65.280.2
(f) For fiscal year 2038 and each year thereafter, upon 3
completion and verification of the auction results, the financial 4
services administrator shall notify winning bidders and transfer the 5
auction proceeds to the state treasurer for deposit as follows: )) 6
$144,000,000 per year must then be deposited in the climate 7
commitment act operating account created in section 1 of this act; 8
(iii) $10,000,000 per year must then be deposited in the air quality 9
and health disparities improvement account created in RCW 70A.65.280; 10
and (iv) the remaining auction proceeds for each fiscal year must be 11
deposited into the climate commitment act capital account created in 12
section 2 of this act.13
(b) During a fiscal year in which, as of the first auction of 14
that fiscal year, the department's most recent baseline climate 15
commitment act forecast projects total revenue to the state for that 16
fiscal year of less than $513,117,000: (i) First, an amount must be 17
deposited in the climate commitment act operating account created in 18
section 1 of this act as follows: $25,000,000 for fiscal year 2028, 19
increased each subsequent fiscal year by the fiscal growth factor as 20
defined in RCW 43.135.025 for that fiscal year. The department must 21
calculate this amount for every fiscal year and communicate it to the 22
state treasurer as needed, though it is only to be used for a 23
transfer amount when the criteria in this subsection (7)(b) are met; 24
and (ii) for the remaining auction proceeds in that fiscal year, the 25
proceeds of each auction must be distributed 50 percent ((of the 26
auction proceeds)) to the carbon emissions reduction account created 27
in RCW 70A.65.240((; and (ii) the remaining auction proceeds to the 28
climate investment account created in RCW 70A.65.250 and the air 29
quality and health disparities improvement account created in RCW 30
70A.65.280)), 32 percent to the climate commitment act capital 31
account created in section 2 of this act, 17 percent to the climate 32
commitment act operating account created in section 1 of this act, 33
and one percent to the air quality and health disparities improvement 34
account created in RCW 70A.65.280. 35
(8) The department shall adopt by rule provisions to guard 36
against bidder collusion and minimize the potential for market 37
manipulation. A registered entity may not release or disclose any 38
bidding information including: Intent to participate or refrain from 39
participation; auction approval status; intent to bid; bidding 40
p. 12 HB 2251
strategy; bid price or bid quantity; or information on the bid 1
guarantee provided to the financial services administrator. The 2
department may cancel or restrict a previously approved auction 3
participation application or reject a new application if the 4
department determines that a registered entity has:5
(a) Provided false or misleading facts; 6
(b) Withheld material information that could influence a decision 7
by the department; 8
(c) Violated any part of the auction rules; 9
(d) Violated registration requirements; or 10
(e) Violated any of the rules regarding the conduct of the 11
auction. 12
(9) Records containing the following information are confidential 13
and are exempt from public disclosure in their entirety:14
(a) Bidding information as identified in subsection (8) of this 15
section; 16
(b) Information contained in the secure, online electronic 17
tracking system established by the department pursuant to RCW 18
70A.65.090(6); 19
(c) Financial, proprietary, and other market sensitive 20
information as determined by the department that is submitted to the 21
department pursuant to this chapter; 22
(d) Financial, proprietary, and other market sensitive 23
information as determined by the department that is submitted to the 24
independent contractor or the financial services administrator 25
engaged by the department pursuant to subsection (3) of this section; 26
and 27
(e) Financial, proprietary, and other market sensitive 28
information as determined by the department that is submitted to a 29
jurisdiction with which the department has entered into a linkage 30
agreement pursuant to RCW 70A.65.210, and which is shared with the 31
department, the independent contractor, or the financial services 32
administrator pursuant to a linkage agreement. 33
(10) Any cancellation or restriction approved by the department 34
under subsection (8) of this section may be permanent or for a 35
specified number of auctions and the cancellation or restriction 36
imposed is not exclusive and is in addition to the remedies that may 37
be available pursuant to chapter 19.86 RCW or other state or federal 38
laws, if applicable. 39
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(11) The department shall design allowance auctions so as to 1
allow, to the maximum extent practicable, linking with external 2
greenhouse gas emissions trading programs in other jurisdictions and 3
to facilitate the transfer of allowances when the state's program has 4
entered into a linkage agreement with other external greenhouse gas 5
emissions trading programs. The department may conduct auctions 6
jointly with linked jurisdictions. 7
(12) In setting the number of allowances offered at each auction, 8
the department shall consider the allowances in the marketplace due 9
to the marketing of allowances issued as required under RCW 10
70A.65.110, 70A.65.120, and 70A.65.130 in the department's 11
determination of the number of allowances to be offered at auction. 12
The department shall offer only such number of allowances at each 13
auction as will enhance the likelihood of achieving the goals of RCW 14
70A.45.020. 15
Sec. 4. RCW 70A.65.230 and 2025 c 417 s 806 are each amended to 16
read as follows: 17
(1) It is the intent of the legislature that each ((year)) 18
biennium the total investments made through the carbon emissions 19
reduction account created in RCW 70A.65.240, the ((climate commitment 20
account created in RCW 70A.65.260, the natural climate solutions 21
account created in RCW 70A.65.270)) climate commitment act operating 22
account created in section 1 of this act, the climate commitment act 23
capital account created in section 2 of this act , and the air quality 24
and health disparities improvement account created in RCW 70A.65.280, 25
achieve the following: 26
(a) A minimum of not less than 35 percent and a goal of 40 27
percent of total investments that provide direct and meaningful 28
benefits to vulnerable populations within the boundaries of 29
overburdened communities identified under chapter 70A.02 RCW; and30
(b) In addition to the requirements of (a) of this subsection, a 31
minimum of not less than 10 percent of total investments that are 32
used for programs, activities, or projects ((formally)) supported by 33
((a resolution of)) an Indian tribe, with priority given to otherwise 34
qualifying projects directly administered or proposed by an Indian 35
tribe. Investments that meet the requirement of this subsection 36
(1)(b) may include a letter of support from an Indian tribe, funding 37
provided to or requested by an Indian tribe, a formal resolution of 38
an Indian tribe, or similar expressions of support from an Indian 39
p. 14 HB 2251
tribe. An investment that meets the requirements of both this 1
subsection (1)(b) and (a) of this subsection may count toward the 2
minimum percentage targets for both subsections. 3
(2) The expenditure of moneys under this chapter must be 4
consistent with applicable federal, state, and local laws, and treaty 5
rights including, but not limited to, prohibitions on uses of funds 6
imposed by the state Constitution. 7
(3) For the purposes of this section, "benefits" means 8
investments or activities that: 9
(a) Reduce vulnerable population characteristics, environmental 10
burdens, or associated risks that contribute significantly to the 11
cumulative impact designation of overburdened communities;12
(b) Meaningfully protect an overburdened community from, or 13
support community response to, the impacts of air pollution or 14
climate change; or 15
(c) Meet a community need identified by vulnerable members of the 16
overburdened community that is consistent with the intent of this 17
chapter. 18
(((4) The state must develop a process by which to evaluate the 19
impacts of the investments made under this chapter, work across state 20
agencies to develop and track priorities across the different 21
eligible funding categories, and work with the environmental justice 22
council pursuant to RCW 70A.65.040.))23
Sec. 5. RCW 70A.65.280 and 2021 c 316 s 31 are each amended to 24
read as follows: 25
(1) The air quality and health disparities improvement account is 26
created in the state treasury. Moneys in the account may be spent 27
only after appropriation. Expenditures from the account are intended 28
to: 29
(a) Improve air quality through the reduction of criteria 30
pollutants, including through effective air quality monitoring and 31
the establishment of adequate baseline emissions data; and32
(b) Reduce health disparities in overburdened communities by 33
improving health outcomes through the reduction or elimination of 34
environmental harms and the promotion of environmental benefits.35
(2) Moneys in the account may be used for ((either)) operating 36
budget, capital budget , or transportation budget purposes ((, or 37
both)). Moneys in the account may not be used for projects that would 38
violate tribal treaty rights or result in significant long-term 39
p. 15 HB 2251
damage to critical habitat or ecological functions. Investments from 1
the account must result in long-term environmental benefits and 2
increased resilience to the impacts of climate change.3
(((3) It is the intent of the legislature that not less than 4
$20,000,000 per biennium be dedicated to the account for the purposes 5
of the account.))6
Sec. 6. RCW 70A.65.300 and 2025 c 424 s 975 are each amended to 7
read as follows: 8
(1) The department shall prepare, post on the department website, 9
and submit to the appropriate committees of the legislature ((an 10
annual)) a report that identifies all distributions of moneys from 11
the accounts created in RCW 70A.65.240 ((through)), 70A.65.280, 12
section 1 of this act, and section 2 of this act. 13
(2) The report must identify, at a minimum((, the)):14
(a) The recipient of the funding, the amount of the funding, the 15
purpose of the funding, the actual end result or use of the funding, 16
whether the project that received the funding produced any verifiable 17
reduction in greenhouse gas emissions or other long-term impact to 18
emissions, and if so, the quantity of reduced greenhouse gas 19
emissions, the cost per carbon dioxide equivalent metric ton of 20
reduced greenhouse gas emissions, and a comparison to other 21
greenhouse gas emissions reduction projects in order to facilitate 22
the development of cost-benefit ratios for greenhouse gas emissions 23
reduction projects; and24
(b) The expenditures that provide direct and meaningful benefits 25
to vulnerable populations within the boundaries of overburdened 26
communities as described in RCW 70A.65.030 and 70A.65.230, and the 27
expenditures that are supported by an Indian tribe as described in 28
RCW 70A.65.230, including:29
(i) The amount of each expenditure that provides direct and 30
meaningful benefits to vulnerable populations within the boundaries 31
of overburdened communities;32
(ii) An explanation of how the expenditure provides such 33
benefits;34
(iii) The methods by which overburdened communities and 35
vulnerable populations were identified by the agency and an 36
explanation of the outcomes of those identification processes, 37
including the geographic location impacted by the expenditure where 38
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relevant, and the geographic boundaries of overburdened communities 1
identified by the agency; and 2
(iv) The amount of each expenditure used for programs, 3
activities, or projects supported by an Indian tribe.4
(3) The department shall require by rule that recipients of funds 5
from the accounts created in RCW 70A.65.240 through 70A.65.280, 6
section 1 of this act, and section 2 of this act report to the 7
department, in a form and manner prescribed by the department, the 8
information required for the department to carry out the department's 9
duties established in this section. 10
(4) ((The department shall update its website with the 11
information described in subsection (2) of this section as 12
appropriate but no less frequently than once per calendar year.13
(5) The)) After the conclusion of each fiscal year through fiscal 14
year 2027, the department shall submit ((its)) the report under this 15
section to the appropriate committees of the legislature ((with the 16
information described in subsection (2) of this section )) and update 17
its website no later than ((September 30 )) December 31st of each 18
year. ((For fiscal year 2025, the report must be submitted no later 19
than November 30, 2024. During the 2025-2027 fiscal biennium, the 20
report must be submitted no later than November 30 of each fiscal 21
year.)) Beginning with the 2027-2029 biennium, after the conclusion 22
of each biennium the department shall submit the report on a biennial 23
basis by December 31st of each odd-numbered year.24
NEW SECTION. Sec. 7. Following the fiscal closure of the 25
2025-2027 biennium, the state treasurer must transfer the remaining 26
balance of the climate investment account created in RCW 70A.65.250, 27
the climate commitment account created in RCW 70A.65.260, and the 28
natural climate solutions account created in RCW 70A.65.270 as 29
follows: (1) 80 percent into the climate commitment act capital 30
account created in section 2 of this act; and (2) 20 percent to the 31
carbon emissions reduction account created in RCW 70A.65.240, to be 32
used for infrastructure and incentives that support transportation 33
electrification.34
Sec. 8. RCW 43.21B.300 and 2025 c 316 s 302 and 2025 c 58 s 3008 35
are each reenacted and amended to read as follows:36
(1) Any civil penalty provided in RCW 18.104.155, 70A.15.3160, 37
70A.205.280, 70A.230.080, 70A.300.090, 70A.20.050, 70A.245.040, 38
p. 17 HB 2251
70A.245.050, 70A.245.070, 70A.245.080, 70A.245.130, 70A.245.140, 1
70A.65.200, 70A.430.070, 70A.455.090, 70A.500.260, ((70A.505.110,)) 2
70A.555.110, 70A.560.020, 70A.208.230, 70A.565.030, 86.16.081, 3
88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 90.56.330, and 4
90.64.102 and chapter 70A.355 RCW shall be imposed by a notice in 5
writing, either by certified mail with return receipt requested or by 6
personal service, to the person incurring the penalty from the 7
department or the local air authority, describing the violation with 8
reasonable particularity. For penalties issued by local air 9
authorities, within 30 days after the notice is received, the person 10
incurring the penalty may apply in writing to the authority for the 11
remission or mitigation of the penalty. Upon receipt of the 12
application, the authority may remit or mitigate the penalty upon 13
whatever terms the authority in its discretion deems proper. The 14
authority may ascertain the facts regarding all such applications in 15
such reasonable manner and under such rules as it may deem proper and 16
shall remit or mitigate the penalty only upon a demonstration of 17
extraordinary circumstances such as the presence of information or 18
factors not considered in setting the original penalty.19
(2) Any penalty imposed under this section may be appealed to the 20
pollution control hearings board in accordance with this chapter if 21
the appeal is filed with the hearings board and served on the 22
department or authority 30 days after the date of receipt by the 23
person penalized of the notice imposing the penalty or 30 days after 24
the date of receipt of the notice of disposition by a local air 25
authority of the application for relief from penalty.26
(3) A penalty shall become due and payable on the later of:27
(a) 30 days after receipt of the notice imposing the penalty;28
(b) 30 days after receipt of the notice of disposition by a local 29
air authority on application for relief from penalty, if such an 30
application is made; or 31
(c) 30 days after receipt of the notice of decision of the 32
hearings board if the penalty is appealed. 33
(4) If the amount of any penalty is not paid to the department 34
within 30 days after it becomes due and payable, the attorney 35
general, upon request of the department, shall bring an action in the 36
name of the state of Washington in the superior court of Thurston 37
county, or of any county in which the violator does business, to 38
recover the penalty. If the amount of the penalty is not paid to the 39
authority within 30 days after it becomes due and payable, the 40
p. 18 HB 2251
authority may bring an action to recover the penalty in the superior 1
court of the county of the authority's main office or of any county 2
in which the violator does business. In these actions, the procedures 3
and rules of evidence shall be the same as in an ordinary civil 4
action. 5
(5) All penalties recovered shall be paid into the state treasury 6
and credited to the general fund except the following:7
(a) Penalties imposed pursuant to RCW 18.104.155 must be credited 8
to the reclamation account as provided in RCW 18.104.155(7);9
(b) Penalties imposed pursuant to RCW 70A.15.3160 must be 10
disposed of pursuant to RCW 70A.15.3160; 11
(c) Penalties imposed pursuant to RCW 70A.230.080, 70A.300.090, 12
70A.430.070, 70A.555.110, 70A.560.020, and 70A.565.030 must be 13
credited to the model toxics control operating account created in RCW 14
70A.305.180; 15
(d) Penalties imposed pursuant to RCW 70A.245.040, 70A.245.050, 16
and chapter 70A.208 RCW must be credited to the recycling enhancement 17
account created in RCW 70A.245.100; 18
(e) Penalties imposed pursuant to RCW 70A.500.260 must be 19
deposited into the electronic products recycling account created in 20
RCW 70A.500.130; 21
(f) Penalties imposed pursuant to RCW 70A.65.200 must be credited 22
to the climate ((investment)) commitment act operating account 23
created in ((RCW 70A.65.250)) section 1 of this act;24
(g) Penalties imposed pursuant to RCW 90.56.330 must be credited 25
to the coastal protection fund established in RCW 90.48.390; and26
(h) Penalties imposed pursuant to RCW 70A.355.070 must be 27
credited to the underground storage tank account created in RCW 28
70A.355.090. 29
Sec. 9. RCW 70A.65.030 and 2025 c 424 s 972, 2025 c 417 s 804, 30
and 2025 c 58 s 3011 are each reenacted and amended to read as 31
follows: 32
(1) Except as provided in subsection (4) of this section, each 33
year or biennium, as appropriate, when allocating funds from the 34
carbon emissions reduction account created in RCW 70A.65.240, the 35
climate commitment act operating account created in ((RCW 36
70A.65.260)) section 1 of this act , the ((natural climate solutions)) 37
climate commitment act capital account created in ((RCW 70A.65.270)) 38
section 2 of this act , ((the climate investment account created in 39
p. 19 HB 2251
RCW 70A.65.250,)) or the air quality and health disparities 1
improvement account created in RCW 70A.65.280, or administering 2
grants or programs funded by the accounts, agencies shall conduct an 3
environmental justice assessment consistent with the requirements of 4
RCW 70A.02.060 and establish a minimum of not less than 35 percent 5
and a goal of 40 percent of total investments that provide direct and 6
meaningful benefits to vulnerable populations within the boundaries 7
of overburdened communities through: (a) The direct reduction of 8
environmental burdens in overburdened communities; (b) the reduction 9
of disproportionate, cumulative risk from environmental burdens, 10
including those associated with climate change; (c) the support of 11
community led project development, planning, and participation costs; 12
or (d) meeting a community need identified by the community that is 13
consistent with the intent of this chapter or RCW 70A.02.010.14
(2) The allocation of funding under subsection (1) of this 15
section must adhere to the following principles, additional to the 16
requirements of RCW 70A.02.080: (a) Benefits and programs should be 17
directed to areas and targeted to vulnerable populations and 18
overburdened communities to reduce statewide disparities; (b) 19
investments and benefits should be made roughly proportional to the 20
health disparities that a specific community experiences, with a goal 21
of eliminating the disparities; (c) investments and programs should 22
focus on creating environmental benefits, including eliminating 23
health burdens, creating community and population resilience, and 24
raising the quality of life of those in the community; and (d) 25
efforts should be made to balance investments and benefits across the 26
state and within counties, local jurisdictions, and unincorporated 27
areas as appropriate to reduce disparities by location and to ensure 28
efforts contribute to a reduction in disparities that exist based on 29
race or ethnicity, socioeconomic status, or other factors.30
(3) Except as provided in subsection (4) of this section, state 31
agencies allocating funds or administering grants or programs from 32
the carbon emissions reduction account created in RCW 70A.65.240, the 33
climate commitment act operating account created in ((RCW 34
70A.65.260)) section 1 of this act , the ((natural climate solutions)) 35
climate commitment act capital account created in ((RCW 70A.65.270)) 36
section 2 of this act , ((the climate investment account created in 37
RCW 70A.65.250,)) or the air quality and health disparities 38
improvement account created in RCW 70A.65.280, must:39
p. 20 HB 2251
(a) Report ((annually)) biennially to the environmental justice 1
council created in RCW 70A.02.110 regarding progress toward meeting 2
environmental justice and environmental health goals;3
(b) Consider recommendations by the environmental justice 4
council; and 5
(c)(i) If the agency is not a covered agency subject to the 6
requirements of chapter 70A.02 RCW, create and adopt a community 7
engagement plan to describe how it will engage with overburdened 8
communities and vulnerable populations in allocating funds or 9
administering grants or programs from the climate investment account.10
(ii) The plan must include methods for outreach and communication 11
with those who face barriers, language or otherwise, to 12
participation. 13
(4) ((During the 2023-2025 and 2025-2027 fiscal biennia:))14
(a) The requirement of subsection (1) of this section to conduct 15
an environmental justice assessment applies only to covered agencies 16
as defined in RCW 70A.02.010 and to significant agency actions as 17
defined in RCW 70A.02.010. 18
(b) Agencies shall coordinate with the department and the office 19
of financial management to achieve total statewide spending from the 20
accounts listed in subsection (1) of this section of not less than 35 21
percent and a goal of 40 percent of total investments that provide 22
direct and meaningful benefits to vulnerable populations within the 23
boundaries of overburdened communities as otherwise described in 24
subsection (1)(a) through (d) of this section and in accordance with 25
RCW 70A.65.230. 26
(c) The requirements of subsection (3)(c) of this section for 27
agencies other than covered agencies to create and adopt community 28
engagement plans apply only to executive branch agencies and 29
institutions of higher education, as defined in RCW 28B.10.016, 30
receiving total appropriations of more than $2,000,000 ((for the 31
2023-2025 fiscal )) per biennium from the accounts listed in 32
subsection (1) of this section. 33
Sec. 10. RCW 70A.65.040 and 2025 c 417 s 805 are each amended to 34
read as follows: 35
(1) The environmental justice council created in RCW 70A.02.110 36
must provide recommendations to the legislature, agencies, and the 37
governor in the development and implementation of the program 38
established in RCW 70A.65.060 through 70A.65.210, and the programs 39
p. 21 HB 2251
funded from the carbon emissions reduction account created in RCW 1
70A.65.240, the climate commitment act operating account created in 2
((RCW 70A.65.260)) section 1 of this act , and the ((natural climate 3
solutions)) climate commitment act capital account created in ((RCW 4
70A.65.270, and the climate investment account created in RCW 5
70A.65.250)) section 2 of this act. 6
(2) In addition to the duties and authorities granted in chapter 7
70A.02 RCW to the environmental justice council, the environmental 8
justice council must: 9
(a) Provide recommendations to the legislature, agencies, and the 10
governor in the development of: 11
(i) The program established in RCW 70A.65.060 through 70A.65.210 12
including, but not limited to, linkage with other jurisdictions, 13
protocols for establishing offset projects and securing offset 14
credits, designation of emissions-intensive and trade-exposed 15
industries under RCW 70A.65.110, and administration of allowances 16
under the program; and 17
(ii) Investment plans and funding proposals for the programs 18
funded from the climate ((investment)) commitment act operating 19
account created in ((RCW 70A.65.250)) section 1 of this act for the 20
purpose of providing environmental benefits and reducing 21
environmental health disparities within overburdened communities;22
(b) Provide a forum to analyze policies adopted under this 23
chapter to determine if the policies lead to improvements within 24
overburdened communities; 25
(c) Recommend procedures and criteria for evaluating programs, 26
activities, or projects; 27
(d) Recommend copollutant emissions reduction goals in 28
overburdened communities; 29
(e) Evaluate the level of funding provided to assist vulnerable 30
populations, low-income individuals, and impacted workers and the 31
funding of projects and activities located within or benefiting 32
overburdened communities; 33
(f) Recommend environmental justice and environmental health 34
goals for programs, activities, and projects funded from the climate 35
investment account, and review agency annual reports on outcomes and 36
progress toward meeting these goals; 37
(g) Provide recommendations to implementing agencies for 38
meaningful consultation with vulnerable populations, including 39
community engagement plans under RCW 70A.65.020 and 70A.65.030; and40
p. 22 HB 2251
(h) Recommend how to support public participation through 1
capacity grants for participation. 2
(3) For the purpose of performing the duties under subsection (2) 3
of this section, two additional tribal members are added to the 4
council. 5
Sec. 11. RCW 70A.65.060 and 2024 c 352 s 2 are each amended to 6
read as follows: 7
(1) In order to ensure that greenhouse gas emissions are reduced 8
by covered entities consistent with the limits established in RCW 9
70A.45.020, the department must implement a cap on greenhouse gas 10
emissions from covered entities and a program to track, verify, and 11
enforce compliance through the use of compliance instruments.12
(2) The program must consist of: 13
(a) Annual allowance budgets that limit emissions from covered 14
entities, as provided in this section and RCW 70A.65.070 and 15
70A.65.080; 16
(b) Defining those entities covered by the program, and those 17
entities that may voluntarily opt into coverage under the program, as 18
provided in this section and RCW 70A.65.070 and 70A.65.080;19
(c) Distribution of emission allowances, as provided in RCW 20
70A.65.100, and through the allowance price containment provisions 21
under RCW 70A.65.140 and 70A.65.150; 22
(d) Providing for offset credits as a method for meeting a 23
compliance obligation, pursuant to RCW 70A.65.170;24
(e) Defining the compliance obligations of covered entities, as 25
provided in chapter 316, Laws of 2021; 26
(f) Establishing the authority of the department to enforce the 27
program requirements, as provided in RCW 70A.65.200;28
(g) ((Creating a climate investment account for the deposit of 29
receipts from the distribution of emission allowances, as provided in 30
RCW 70A.65.250;31
(h))) Providing for the transfer of allowances and recognition of 32
compliance instruments, including those issued by jurisdictions with 33
which Washington has linkage agreements; 34
(((i))) (h) Providing monitoring and oversight of the sale and 35
transfer of allowances by the department; 36
(((j))) (i) Creating a price ceiling and associated mechanisms as 37
provided in RCW 70A.65.160; and 38
p. 23 HB 2251
(((k))) (j) Providing for the allocation of allowances to 1
emissions-intensive, trade-exposed industries pursuant to RCW 2
70A.65.110. 3
(3) The department shall consider opportunities to implement the 4
program in a manner that allows linking the state's program with 5
those of other jurisdictions. The department must evaluate whether 6
such linkage will provide for a more cost-effective means for covered 7
entities to meet their compliance obligations in Washington while 8
recognizing the special characteristics of the state's economy, 9
communities, and industries. The department is authorized to enter 10
into a linkage agreement with another jurisdiction after conducting 11
an environmental justice assessment and after formal notice and 12
opportunity for a public hearing, and when consistent with the 13
requirements of RCW 70A.65.210. The department is authorized to 14
withdraw from a linkage agreement and every linkage agreement must 15
provide that the department reserves the right to withdraw from the 16
agreement. 17
(4) During the 2022 regular legislative session, the department 18
must bring forth agency request legislation developed in consultation 19
with emissions-intensive, trade-exposed businesses, covered entities, 20
environmental advocates, and overburdened communities that outlines a 21
compliance pathway specific to emissions-intensive, trade-exposed 22
businesses for achieving their proportionate share of the state's 23
emissions reduction limits through 2050. 24
(5) By December 1, 2027, and by December 1st of each year that is 25
one year after the end of a compliance period, and in compliance with 26
RCW 43.01.036, the department must submit a report to the legislature 27
that includes a comprehensive review of the implementation of the 28
program to date, including but not limited to outcomes relative to 29
the state's emissions reduction limits, overburdened communities, 30
covered entities, and emissions-intensive, trade-exposed businesses. 31
The department must transmit the report to the environmental justice 32
council at the same time it is submitted to the legislature.33
(6) The department must bring forth agency request legislation if 34
the department finds that any provision of this chapter prevents 35
linking Washington's cap and invest program with that of any other 36
jurisdiction. 37
Sec. 12. RCW 70A.65.200 and 2024 c 352 s 8 are each amended to 38
read as follows: 39
p. 24 HB 2251
(1) All covered and opt-in entities are required to submit 1
compliance instruments in a timely manner to meet the entities' 2
compliance obligations and shall comply with all requirements for 3
monitoring, reporting, holding, and transferring emission allowances 4
and other provisions of this chapter. 5
(2) If a covered or opt-in entity does not submit sufficient 6
compliance instruments to meet its compliance obligation by the 7
specified transfer dates, a penalty of four allowances for every one 8
compliance instrument that is missing must be submitted to the 9
department within six months. When a covered entity or opt-in entity 10
reasonably believes that it will be unable to meet a compliance 11
obligation, the entity shall immediately notify the department. Upon 12
receiving notification, the department shall issue an order requiring 13
the entity to submit the penalty allowances. 14
(3) If a covered entity or opt-in entity fails to submit penalty 15
allowances as required by subsection (2) of this section, the 16
department must issue an order or issue a penalty of up to $10,000 17
per day per violation, or both, for failure to submit penalty 18
allowances as required by subsection (2) of the section. The order 19
may include a plan and schedule for coming into compliance.20
(4) The department may issue a penalty of up to $50,000 per day 21
per violation for violations of RCW 70A.65.100(8) (a) through (e).22
(5) Except as provided in subsections (3) and (4) of this 23
section, any person that violates the terms of this chapter or an 24
order issued under this chapter incurs a penalty of up to $10,000 per 25
day per violation for each day that the person does not comply. All 26
penalties under subsections (3) and (4) of this section and this 27
subsection must be deposited into the climate ((investment)) 28
commitment act operating account created in ((RCW 70A.65.250)) 29
section 1 of this act. 30
(6) Orders and penalties issued under this chapter are appealable 31
to the pollution control hearings board under chapter 43.21B RCW.32
(7) Until the department enters into a linkage agreement or until 33
the end of the first compliance period, whichever is sooner, the 34
department may reduce the amount of the penalty by adjusting the 35
monetary amount or the number of penalty allowances described in 36
subsections (2) and (3) of this section. 37
(8) An electric utility or natural gas utility must notify its 38
retail customers and the environmental justice council in published 39
p. 25 HB 2251
form within three months of paying a monetary penalty under this 1
section. 2
(9)(a) No city, town, county, township, or other subdivision or 3
municipal corporation of the state may implement a charge or tax 4
based exclusively upon the quantity of greenhouse gas emissions.5
(b) No state agency may adopt or enforce a greenhouse gas pricing 6
or market-based emissions cap and reduce program for stationary 7
sources, or adopt or enforce emission limitations on greenhouse gas 8
emissions from stationary sources except as: 9
(i) Provided in this chapter; 10
(ii) Authorized or directed by a state statute in effect as of 11
July 1, 2022; or 12
(iii) Required to implement a federal statute, rule, or program.13
(c) This chapter preempts the provisions of chapter 173-442 WAC, 14
and the department shall repeal chapter 173-442 WAC.15
(10)(a) By December 1, 2023, the office of financial management 16
must submit a report to the appropriate committees of the legislature 17
that summarizes two categories of state laws other than this chapter:18
(i) Laws that regulate greenhouse gas emissions from stationary 19
sources, and the greenhouse gas emission reductions attributable to 20
each chapter, relative to a baseline in which this chapter and all 21
other state laws that regulate greenhouse gas emissions are presumed 22
to remain in effect; and 23
(ii) Laws whose implementation may effectuate reductions in 24
greenhouse gas emissions from stationary sources. 25
(b) The state laws that the office of financial management may 26
address in completing the report required in this subsection include, 27
but are not limited to: 28
(i) Chapter 19.27A RCW; 29
(ii) Chapter 19.280 RCW; 30
(iii) Chapter 19.405 RCW; 31
(iv) Chapter 36.165 RCW; 32
(v) Chapter 43.21F RCW; 33
(vi) Chapter 70.30 RCW; 34
(vii) Chapter 70A.15 RCW; 35
(viii) Chapter 70A.45 RCW; 36
(ix) Chapter 70A.60 RCW; 37
(x) Chapter 70A.535 RCW; 38
(xi) Chapter 80.04 RCW; 39
(xii) Chapter 80.28 RCW; 40
p. 26 HB 2251
(xiii) Chapter 80.70 RCW; 1
(xiv) Chapter 80.80 RCW; and 2
(xv) Chapter 81.88 RCW. 3
(c) The office of financial management may contract for all or 4
part of the work product required under this subsection.5
Sec. 13. RCW 70A.65.305 and 2024 c 375 s 8004 are each amended 6
to read as follows: 7
(1) Agencies that allocate funding or administer grant programs 8
appropriated from the climate ((investment)) commitment act operating 9
account created in ((RCW 70A.65.250,)) section 1 of this act and the 10
climate commitment act capital account created in ((RCW 70A.65.260, 11
and the natural climate solutions account created in RCW 70A.65.270)) 12
section 2 of this act must offer early, meaningful, and individual 13
consultation with any affected federally recognized tribe on all 14
funding decisions and funding programs that may impact tribal 15
resources, including tribal cultural resources, archaeological sites, 16
sacred sites, fisheries, or other rights and interests in tribal 17
lands and lands within which a tribe or tribes possess rights 18
reserved or protected by federal treaty, statute, or executive order. 19
The consultation is independent of, and in addition to, any public 20
participation process required by federal or state law, or by a 21
federal or state agency, including the requirements of Executive 22
Order 21-02 related to archaeological and cultural resources, and 23
regardless of whether the agency receives a request for consultation 24
from a federally recognized tribe. The goal of the consultation 25
process is to identify tribal resources or rights potentially 26
affected by the funding decisions and funding programs, assess their 27
effects, and seek ways to avoid, minimize, or mitigate any adverse 28
effects on tribal resources or rights. 29
(2) At the earliest possible date prior to submittal of an 30
application, applicants for funding from the accounts created in 31
((RCW 70A.65.250, 70A.65.260, and 70A.65.270)) sections 1 and 2 of 32
this act shall engage in a preapplication process with all affected 33
federally recognized tribes within the project area. ((During the 34
2023-2025 fiscal biennium, salmon habitat and climate resilience 35
projects funded from the natural climate solutions account created in 36
RCW 70A.65.270 that went through the application and prioritization 37
process before July 1, 2023, are exempt from the preapplication 38
requirements under this subsection.))39
p. 27 HB 2251
(a) The preapplication process must include the applicant 1
notifying the department of archaeology and historic preservation, 2
the department of fish and wildlife, and all affected federally 3
recognized tribes within the project area. The notification must 4
include geographical location, detailed scope of the proposed 5
project, preliminary application details available to federal, state, 6
or local governmental jurisdictions, and all publicly available 7
materials, including public funding sources. 8
(b) The applicant must also offer to discuss the project with the 9
department of archaeology and historic preservation, the department 10
of fish and wildlife, and all affected federally recognized tribes 11
within the project area. Discussions may include the project's impact 12
to tribal resources, including tribal cultural resources, 13
archaeological sites, sacred sites, fisheries, or other rights and 14
interests in tribal lands and lands within which a tribe or tribes 15
possess rights reserved or protected by federal treaty, statute, or 16
executive order. 17
(c) All affected federally recognized tribes may submit to the 18
appropriate agency or agencies a summary of tribal issues, questions, 19
concerns, or other statements regarding the project, which must 20
become part of the official application file. The summary does not 21
limit what issues affected federally recognized tribes may raise in 22
the consultation process identified in subsections (1), (3) through 23
(7), and (9) of this section. 24
(d) The notification and offer to initiate discussion must be 25
documented with the application when it is filed, and a copy of the 26
application must be delivered to the department of archaeology and 27
historic preservation, the department of fish and wildlife, and to 28
the affected federally recognized tribe or tribes. If the discussions 29
pursuant to (b) of this subsection do not occur, the applicant must 30
document the reason why the discussion or discussions did not occur.31
(e) Nothing in this section may be interpreted to require the 32
disclosure of information that is exempt from disclosure pursuant to 33
RCW 42.56.300 or federal law, including section 304 of the national 34
historic preservation act of 1966. Any information that is exempt 35
from disclosure pursuant to RCW 42.56.300 or federal law, including 36
section 304 of the national historic preservation act of 1966, shall 37
not become part of the official application file. 38
(3) If any funding decision, program, project, or activity that 39
may impact tribal resources, including tribal cultural resources, 40
p. 28 HB 2251
archaeological sites, sacred sites, fisheries, or other rights and 1
interests in tribal lands and lands within which a tribe or tribes 2
possess rights reserved by federal treaty, statute, or executive 3
order is funded from the accounts created in ((RCW 70A.65.250, 4
70A.65.260, and 70A.65.270)) sections 1 and 2 of this act without 5
such a consultation with an affected federally recognized tribe, the 6
affected federally recognized tribe may request that all further 7
action on the decision, program, project, or activity cease until 8
meaningful consultation is completed. Upon receipt of such a request 9
by an agency or agencies with the authority to allocate funding or 10
administer grant programs from the accounts listed in subsection (1) 11
of this section in support of the proposed project, further action by 12
the agency or agencies on any decision, program, project, or activity 13
that would result in significant physical disturbance of the tribal 14
resource or resources described in this subsection must cease until 15
the consultation has been completed. 16
(4) Upon completion of agency and tribal consultation, an 17
affected federally recognized tribe may request a formal review of 18
the consultation by submitting a request to the governor's office of 19
Indian affairs and notifying the appropriate agencies and the 20
department of archaeology and historic preservation. The state 21
agencies and tribe must meet to initiate discussion within no more 22
than 20 days of the request. This consultation must be offered and 23
conducted separately with each affected federally recognized tribe, 24
unless the tribes agree to conduct a joint consultation with the 25
state. 26
(5) After the state agencies and tribe or tribes have conducted a 27
formal review under subsection (4) of this section, an affected 28
federally recognized tribe or state agency may request that the 29
governor and an elected tribal leader or leaders of a federally 30
recognized tribal government meet to formally consider the 31
recommendations from the parties. If requested, this meeting must 32
occur within 30 days of the request, except that a federally 33
recognized tribe may choose to opt out of the meeting. This timeline 34
may be extended by mutual agreement between the governor and the 35
tribal leaders. 36
(6) After the meeting identified in subsection (5) of this 37
section has occurred, the governor or an elected tribal leader of a 38
federally recognized tribe may call for the state and tribe or tribes 39
to enter into formal mediation, except that a federally recognized 40
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tribe may choose to opt out of the mediation. If entered into, the 1
mediation must be conducted as a government-to-government proceeding, 2
with each sovereign government retaining their right to a final 3
decision that meets their separate obligations and interests. 4
Mediators must be jointly selected by the parties to the mediation. 5
An agreement between the governor and a tribal leader or leaders 6
resulting from the mediation is formally recognized and binding on 7
the signatory parties. Absent an agreement, participation in 8
mediation does not preclude any additional steps that any party can 9
initiate, including legal review, to resolve a continuing 10
disagreement. 11
(7) During the proceedings outlined in subsections (4) through 12
(6) of this section, the agency or agencies with the authority to 13
allocate funding or administer grant programs from the accounts 14
listed in subsection (1) of this section in support of the proposed 15
project may not approve or release funding, or make other formal 16
decisions, including permitting, that advance the proposed project 17
except where required by law. 18
(8) By June 30, 2023, the governor's office of Indian affairs, in 19
coordination with the department of archaeology and historic 20
preservation and federally recognized tribes, shall develop a state 21
agency tribal consultation process, including best practices for 22
early, meaningful, and effective consultation, early notification and 23
engagement by applicants with federally recognized tribes as a part 24
of the preapplication process in subsection (2) of this section, and 25
protocols for communication and collaboration with federally 26
recognized tribes. The consultation process developed under this 27
section must be periodically reviewed and updated in coordination 28
with federally recognized tribes. The governor's office of Indian 29
affairs must provide training and other technical assistance to state 30
agencies, as they implement the required consultation. 31
Notwithstanding the governor's office of Indian affairs' ongoing work 32
pursuant to this subsection, the provisions of subsections (1) 33
through (7) and (9) of this section become effective as of June 9, 34
2022. 35
(9) The requirements of this section apply to local governments 36
that receive funding from the accounts created in ((RCW 70A.65.250, 37
70A.65.260, and 70A.65.270)) sections 1 and 2 of this act , where that 38
funding is disbursed to project and program applicants. Where 39
requested, the governor's office of Indian affairs must provide 40
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training and other technical assistance to local government agencies 1
as they implement the consultation requirements of this section.2
(10) Any agency subject to or implementing this section may adopt 3
rules in furtherance of its duties under this section.4
(11) Subject to the availability of amounts appropriated for this 5
specific purpose, the department must establish a tribal capacity 6
grant program to provide funding to federally recognized tribes for 7
the costs of implementing this section. 8
Sec. 14. RCW 76.04.196 and 2025 c 93 s 2 are each amended to 9
read as follows: 10
(1) Subject to the availability of amounts appropriated for this 11
specific purpose, the office of risk management shall, in 12
consultation with the department, establish a prescribed fire claims 13
fund pilot program for the purposes of: 14
(a) Supporting coverage for losses from prescribed fires and 15
cultural burning on department protected lands and on tribal lands 16
where an agreement exists between the Indian tribe and the department 17
or where approved by the Indian tribe. The fund would not be utilized 18
when prescribed fires or cultural burning have federal tort claims 19
act coverage under a federally recognized burn plan; and20
(b) Supporting nonstate and nonfederal entities that are alleged 21
to have caused damages resulting from appropriately conducted 22
prescribed fires or cultural burning on department protected lands 23
and tribal lands as described in (a) of this subsection.24
(2) To be eligible for reimbursement under this section, a claim 25
must meet the criteria in (a) and (b) of this subsection.26
(a) The claim results from a prescribed fire or cultural burn 27
conducted on department protected lands and tribal lands as described 28
in subsection (1)(a) of this section: 29
(i) By a certified burn manager, under an approved burn plan, 30
with applicable permits and in accordance with any other applicable 31
conditions or requirements as determined by the department; or32
(ii) By a cultural fire practitioner, in accordance with any 33
applicable burn plan or permit. 34
(b) The claim is for: 35
(i) Property or economic damage, as described under RCW 36
76.04.760(3) (a), (c), and (d), suffered by the claimant as a result 37
of the prescribed fire or cultural burn; 38
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(ii) Reasonable costs authorized for reimbursement by the 1
department under RCW 76.04.475, related to the prescribed fire or 2
cultural burn; or 3
(iii) Costs of suppression of an escapement for which a person is 4
liable to a third party. 5
(c) A claim for damage suffered as a result of a prescribed fire 6
or cultural burn started, spread, or otherwise caused by a criminal 7
or negligent act is not eligible for reimbursement under this 8
section. 9
(3) Upon submission of a claim, the department shall determine 10
and certify to the office of risk management whether the claim meets 11
the criteria in subsection (2) of this section. 12
(4) The office of risk management may reimburse an eligible claim 13
in an amount equal to or less than the actual losses suffered by the 14
claimant, not to exceed $2,000,000 per claim. The payment of a claim 15
under this section is conditional on the availability of specific 16
funding for this purpose, and nothing in this section shall be 17
construed to create an entitlement to reimbursement or payment of any 18
claim. The total amount paid for claims may not exceed the amounts 19
available in the account established in subsection (7) of this 20
section. 21
(5)(a) The office of risk management shall collaborate with the 22
department, other relevant state agencies, the Washington prescribed 23
fire council, cultural fire practitioners, and certified burn 24
managers to establish guidelines governing the pilot program and the 25
administration of the account established in subsection (7) of this 26
section, including: 27
(i) Procedures for the submission of claims; 28
(ii) Any additional criteria for claim eligibility, as 29
appropriate; and 30
(iii) A methodology or structure for how the payment of claims 31
will be prioritized in the event that eligible claims exceed the 32
amounts available in the account established in subsection (7) of 33
this section. 34
(b) The office of risk management and the department may adopt 35
rules to implement this section. 36
(c) Guidelines and any rules adopted under this section must be 37
made publicly available on the websites of the office of risk 38
management and the department. 39
p. 32 HB 2251
(6) This section does not limit the ability of a person to assert 1
a claim for damages arising from a prescribed fire under any other 2
law. A court shall offset any award of damages to a claimant under an 3
action arising from the same set of alleged facts by the amount of 4
reimbursement provided under this section. 5
(7)(a) The prescribed fire claims account is created in the state 6
treasury. Moneys in the account may be spent only after 7
appropriation. Expenditures from the account may only be used for the 8
reimbursement of claims under this section. 9
(b) Upon the expiration of this section, any remaining amounts in 10
the account must be deposited in the ((natural climate solutions )) 11
climate commitment act capital account created in section 2 of this 12
act. 13
(8) For the purposes of this section: 14
(a) "Certified burn manager" means a prescribed burn manager 15
certified under RCW 76.04.183 or a prescribed fire burn boss 16
certified under the national wildfire coordinating group standards.17
(b) "Cultural fire practitioner" means a person approved by an 18
Indian tribe as having experience in burning to meet cultural goals 19
or objectives, including subsistence, ceremonial activities, 20
biodiversity, or other benefits. 21
(c) "Department protected lands" has the same meaning as in RCW 22
76.04.005. 23
(d) "Indian tribe" has the same meaning as in RCW 43.376.010.24
(9) This section expires June 30, 2033. 25
Sec. 15. RCW 76.13.120 and 2024 c 158 s 1 are each amended to 26
read as follows: 27
(1) The legislature finds that the state should acquire easements 28
primarily along riparian and other sensitive aquatic areas from 29
qualifying small forestland owners willing to sell or donate 30
easements to the state provided that the state will not be required 31
to acquire the easements if they are subject to unacceptable 32
liabilities. Therefore the legislature establishes a forestry 33
riparian easement program. 34
(2) The definitions in this subsection apply throughout this 35
section and RCW 76.13.100, 76.13.110, 76.13.140, and 76.13.160 unless 36
the context clearly requires otherwise. 37
p. 33 HB 2251
(a) "Forestry riparian easement" means an easement covering 1
qualifying timber granted voluntarily to the state by a qualifying 2
small forestland owner. 3
(b) "Qualifying small forestland owner" means a landowner meeting 4
all of the following characteristics as of the date the department 5
offers compensation for a forestry riparian easement:6
(i) Is a small forestland owner as defined in (d) of this 7
subsection; and 8
(ii) Is an individual, partnership, corporation, or other 9
nongovernmental for-profit legal entity. 10
(c) "Qualifying timber" means those forest trees on land owned by 11
a qualifying small forestland owner for which the small forestland 12
owner is willing to grant the state a forestry riparian easement and 13
meets all of the following: 14
(i) The forest trees are covered by a forest practices 15
application that the small forestland owner is required to leave 16
unharvested under the rules adopted under RCW 76.09.040, 76.09.055, 17
and 76.09.370 or that is made uneconomic to harvest by those rules;18
(ii) The forest trees are within or bordering a commercially 19
reasonable harvest unit as determined under rules adopted by the 20
forest practices board, or for which an approved forest practices 21
application for timber harvest cannot be obtained because of 22
restrictions under the forest practices rules; 23
(iii) The forest trees are located within, or affected by forest 24
practices rules pertaining to any one, or all, of the following:25
(A) Riparian or other sensitive aquatic areas;26
(B) Channel migration zones; or 27
(C) Areas of potentially unstable slopes or landforms, verified 28
by the department, and must meet all of the following:29
(I) Are addressed in a forest practices application;30
(II) Are adjacent to a commercially reasonable harvest area; and31
(III) Have the potential to deliver sediment or debris to a 32
public resource or threaten public safety. 33
(d) "Small forestland owner" means a landowner meeting all of the 34
following characteristics: 35
(i) A forestland owner as defined in RCW 76.09.020 whose interest 36
in the land and timber is in fee or who has rights to the timber to 37
be included in the forestry riparian easement that extend at least 40 38
years from the date the completed forestry riparian easement 39
application associated with the easement is submitted;40
p. 34 HB 2251
(ii) An entity that has harvested from its own lands in this 1
state during the three years prior to the year of application an 2
average timber volume that would qualify the owner as a small 3
harvester under RCW 84.33.035; and 4
(iii) An entity that certifies at the time of application that it 5
does not expect to harvest from its own lands more than the volume 6
allowed by RCW 84.33.035 during the 10 years following application. 7
If a landowner's prior three-year average harvest exceeds the limit 8
of RCW 84.33.035, or the landowner expects to exceed this limit 9
during the 10 years following application, and that landowner 10
establishes to the department's reasonable satisfaction that the 11
harvest limits were or will be exceeded to raise funds to pay estate 12
taxes or equally compelling and unexpected obligations such as court-13
ordered judgments or extraordinary medical expenses, the landowner 14
shall be deemed to be a small forestland owner. For purposes of 15
determining whether a person qualifies as a small forestland owner, 16
the small forestland owner office, created in RCW 76.13.110, shall 17
evaluate the landowner under this definition, pursuant to RCW 18
76.13.160, as of the date that the forest practices application is 19
submitted and the date that the department offers compensation for 20
the forestry riparian easement. A small forestland owner can include 21
an individual, partnership, corporation, or other nongovernmental 22
legal entity. If a landowner grants timber rights to another entity 23
for less than five years, the landowner may still qualify as a small 24
forestland owner under this section. If a landowner is unable to 25
obtain an approved forest practices application for timber harvest 26
for any of his or her land because of restrictions under the forest 27
practices rules, the landowner may still qualify as a small 28
forestland owner under this section. 29
(e) "Completion of harvest" means that the trees have been 30
commercially harvested from an area and that further entry into that 31
area by mechanized logging or slash treating equipment is not 32
expected. 33
(3) Nothing in the eligibility limit identified in subsection 34
(2)(c)(i) through (iii) of this section precludes inclusion of land 35
in future mitigation programs. 36
(4) The department is authorized and directed to accept and hold 37
in the name of the state of Washington forestry riparian easements 38
granted by qualifying small forestland owners covering qualifying 39
timber and to pay compensation to the landowners in accordance with 40
p. 35 HB 2251
this section. The department may not transfer the easements to any 1
entity other than another state agency. 2
(5) Forestry riparian easements shall be effective for 40 years 3
from the date of the completed forestry riparian easement 4
application, unless the easement is voluntarily terminated earlier by 5
the department, based on a determination that termination is in the 6
best interest of the state, or under the terms of a termination 7
clause in the easement. 8
(6) Forestry riparian easements shall be restrictive of the 9
timber only, and shall preserve all lawful uses of the easement 10
premises by the landowner that are consistent with the terms of the 11
easement and the requirement to protect riparian functions during the 12
term of the easement, subject to the restriction that the leave trees 13
required by the rules to be left on the easement premises may not be 14
cut during the term of the easement. No right of public access to or 15
across, or any public use of the easement premises is created by this 16
statute or by the easement. Forestry riparian easements shall not be 17
deemed to trigger the compensating tax of or otherwise disqualify 18
land from being taxed under chapter 84.33 or 84.34 RCW.19
(7) The small forestland owner office shall determine what 20
constitutes a completed application for a forestry riparian easement. 21
An application shall, at a minimum, include documentation of the 22
owner's status as a qualifying small forestland owner, identification 23
of location and the types of qualifying timber, and notification of 24
completion of harvest, if applicable. 25
(8) Upon receipt of the qualifying small forestland owner's 26
forestry riparian easement application, and subject to the 27
availability of amounts appropriated for this specific purpose, the 28
following must occur: 29
(a) The small forestland owner office must determine the 30
compensation to be offered to the qualifying small forestland owner 31
for qualifying timber after the department accepts the completed 32
forestry riparian easement application and the landowner has 33
completed marking the boundary of the area containing the qualifying 34
timber. The legislature recognizes that there is not readily 35
available market transaction evidence of value for easements of the 36
nature required by this section, and thus establishes the methodology 37
provided in this subsection to ascertain the value for forestry 38
riparian easements. Values so determined may not be considered 39
competent evidence of value for any other purpose.40
p. 36 HB 2251
(b) The small forestland owner office, subject to the 1
availability of amounts appropriated for this specific purpose, is 2
responsible for assessing the volume of qualifying timber. However, 3
no more than 50 percent of the total amounts appropriated for the 4
forestry riparian easement program may be applied to determine the 5
volume of qualifying timber for completed forestry riparian easement 6
applications. Based on the volume established by the small forestland 7
owner office and using data obtained or maintained by the department 8
of revenue under RCW 84.33.074 and 84.33.091, the small forestland 9
owner office shall attempt to determine the fair market value of the 10
qualifying timber as of the date of the completed harvest. To the 11
extent reasonably possible, the forestry riparian easement 12
applications should be processed in the order received. Removal of 13
any qualifying timber before the expiration of the easement must be 14
in accordance with the forest practices rules and the terms of the 15
easement. There shall be no reduction in compensation for reentry.16
(9)(a) Subject to the availability of amounts appropriated for 17
this specific purpose, the small forestland owner office shall offer 18
compensation for qualifying timber to the qualifying small forestland 19
owner in the amount of 90 percent of the value determined by the 20
small forestland owner office, plus the compliance and reimbursement 21
costs as determined in accordance with RCW 76.13.140. However, 22
compensation for any qualifying small forestland owner for qualifying 23
timber located on potentially unstable slopes or landforms may not 24
exceed a total of $150,000 during any biennial funding period.25
(b) If the landowner accepts the offer for qualifying timber, the 26
department shall pay the compensation promptly upon:27
(i) Completion of harvest in the area within a commercially 28
reasonable harvest unit with which the forestry riparian easement is 29
associated under an approved forest practices application, unless an 30
approved forest practices application for timber harvest cannot be 31
obtained because of restrictions under the forest practices rules;32
(ii) Verification that the landowner has no outstanding 33
violations under chapter 76.09 RCW or any associated rules; and34
(iii) Execution and delivery of the easement to the department.35
(c) Upon donation or payment of compensation, the department may 36
record the easement. 37
(10)(a) The forest practices board shall adopt rules under the 38
administrative procedure act, chapter 34.05 RCW, to implement the 39
forestry riparian easement program, including the following:40
p. 37 HB 2251
(i) A standard version of a forestry riparian easement 1
application as well as all additional documents necessary or 2
advisable to create the forestry riparian easements as provided for 3
in this section; 4
(ii) Standards for descriptions of the easement premises with a 5
degree of precision that is reasonable in relation to the values 6
involved; 7
(iii) Methods and standards for cruises and valuation of forestry 8
riparian easements for purposes of establishing the compensation. The 9
department shall perform the timber cruises of forestry riparian 10
easements required under this chapter and chapter 76.09 RCW. Timber 11
cruises are subject to amounts appropriated for this purpose. 12
However, no more than 50 percent of the total appropriated funding 13
for the forestry riparian easement program may be applied to 14
determine the volume of qualifying timber for completed forestry 15
riparian easement applications. Any rules concerning the methods and 16
standards for valuations of forestry riparian easements shall apply 17
only to the department, qualifying small forestland owners, and the 18
small forestland owner office; 19
(iv) A method to determine that a forest practices application 20
involves a commercially reasonable harvest, and adopt criteria for 21
entering into a forestry riparian easement where a commercially 22
reasonable harvest is not possible or a forest practices application 23
that has been submitted cannot be approved because of restrictions 24
under the forest practices rules; 25
(v) A method to address blowdown of qualified timber falling 26
outside the easement premises; 27
(vi) A formula for sharing of proceeds in relation to the 28
acquisition of qualified timber covered by an easement through the 29
exercise or threats of eminent domain by a federal or state agency 30
with eminent domain authority, based on the present value of the 31
department's and the landowner's relative interests in the qualified 32
timber; 33
(vii) A method to determine timber that is qualifying timber 34
because it is rendered uneconomic to harvest by the rules adopted 35
under RCW 76.09.055 and 76.09.370; 36
(viii) A method for internal department review of small 37
forestland owner office compensation decisions under this section; 38
and 39
p. 38 HB 2251
(ix) Consistent with RCW 76.13.180, a method to collect 1
reimbursement from landowners who received compensation for a 2
forestry riparian easement and who, within the first 10 years after 3
receipt of compensation for a forestry riparian easement, sells the 4
land on which an easement is located to a nonqualifying landowner.5
(b) At least semiannually, the department shall consult with the 6
small forestland owner advisory committee established in RCW 7
76.13.110(4) to review landowner complaints, administrative 8
processes, rule recommendations, and related issues where the 9
department is actively seeking the small forestland owner advisory 10
committee's advice on potential improved efficiencies and 11
effectiveness. 12
(11) The legislature finds that the overall societal benefits of 13
economically viable working forests are multiple, and include the 14
protection of clean, cold water, the provision of wildlife habitat, 15
the sheltering of cultural resources from development, and the 16
natural carbon storage potential of growing trees. As such, working 17
forests and the forestry riparian easement program may be part of the 18
state's overall carbon sequestration strategy. If the state creates a 19
climate strategy, the department must share information regarding the 20
carbon sequestration benefits of the forestry riparian easement 21
program with other state programs using methods and protocols 22
established in the state climate strategy that attempt to quantify 23
carbon storage or account for carbon emissions. The department must 24
promote the expansion of funding for the forestry riparian easement 25
program and the ecosystem services supported by the program based on 26
the findings stated in RCW 76.13.100. Nothing in this subsection 27
allows a landowner to be reimbursed by the state more than once for 28
the same forest riparian easement application. 29
(12) It is the intent of the legislature that the small 30
forestland owner office complete forestry riparian easement program 31
application transactions within two years of the application receipt 32
consistent with the goals of ((RCW 70A.65.270(2)(b)(iii))) section 33
2(1)(n)(iii) of this act. 34
NEW SECTION. Sec. 16. The following acts or parts of acts are 35
each repealed:36
(1) RCW 70A.65.250 (Climate investment account) and 2025 c 424 s 37
973 & 2024 c 376 s 911; 38
p. 39 HB 2251
(2) RCW 70A.65.260 (Climate commitment account) and 2025 c 424 s 1
974, 2023 c 475 s 939, 2022 c 179 s 17, & 2021 c 316 s 29; and2
(3) RCW 70A.65.270 (Natural climate solutions account) and 2021 c 3
316 s 30. 4
NEW SECTION. Sec. 17. This act takes effect July 1, 2027.5
--- END ---
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