Municipal solid waste

AN ACT Relating to fair treatment of municipal solid waste 1
systems; amending RCW 70A.65.080; and creating a new section.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. The legislature finds, based on a study 4
published by the department of ecology in March 2024, that the only 5
waste to energy system in the state will emit less greenhouse gases 6
when compared to the alternative of managing, hauling, and disposing 7
of that system's waste to landfills in other communities. The 8
legislature intends to treat all municipal solid waste management 9
systems equally throughout the state under the Washington cap and 10
invest program. This act achieves equal treatment of all communities 11
with municipal solid waste management systems under the Washington 12
cap and invest program by adding a narrow program exemption for the 13
state's only waste to energy municipal solid waste management system.14
Sec. 2. RCW 70A.65.080 and 2024 c 352 s 4 are each amended to 15
read as follows: 16
(1) A person is a covered entity as of the beginning of the first 17
compliance period and all subsequent compliance periods if the person 18
reported emissions under RCW 70A.15.2200 for any calendar year from 19
2015 through 2019, or if additional data provided as required by this 20
S-0935.2
SENATE BILL 5703
State of Washington 69th Legislature 2025 Regular Session
By Senators Holy, Riccelli, Short, Christian, Fortunato, Lovelett,
and Nobles
Referred to Committee on Local Government.
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chapter indicates that emissions for any calendar year from 2015 1
through 2019 equaled or exceeded any of the following thresholds, or 2
if the person is a first jurisdictional deliverer and imports 3
electricity into the state during the compliance period:4
(a) Where the person owns or operates a facility and the 5
facility's emissions equal or exceed 25,000 metric tons of carbon 6
dioxide equivalent; 7
(b) Where the person is a first jurisdictional deliverer and 8
generates electricity in the state and emissions associated with this 9
generation equals or exceeds 25,000 metric tons of carbon dioxide 10
equivalent; 11
(c)(i) Where the person is a first jurisdictional deliverer 12
importing electricity into the state and: 13
(A) For specified sources, the cumulative annual total of 14
emissions associated with the imported electricity exceeds 25,000 15
metric tons of carbon dioxide equivalent; 16
(B) For unspecified sources, the cumulative annual total of 17
emissions associated with the imported electricity exceeds 0 metric 18
tons of carbon dioxide equivalent; or 19
(C) For electricity purchased from a federal power marketing 20
administration pursuant to section 5 (b) of the Pacific Northwest 21
electric power planning and conservation act of 1980, P.L. 96-501, if 22
the department determines such electricity is not from a specified 23
source, the cumulative annual total of emissions associated with the 24
imported electricity exceeds 25,000 metric tons of carbon dioxide 25
equivalent. 26
(ii) In consultation with any linked jurisdiction to the program 27
created by this chapter, by October 1, 2026, the department, in 28
consultation with the department of commerce and the utilities and 29
transportation commission, shall adopt by rule a methodology for 30
addressing imported electricity associated with a centralized 31
electricity market; 32
(d) Where the person is a supplier of fossil fuel other than 33
natural gas and from that fuel 25,000 metric tons or more of carbon 34
dioxide equivalent emissions would result from the full combustion or 35
oxidation, excluding the amounts for fuel products that are produced 36
or imported with a documented final point of delivery outside of 37
Washington and combusted outside of Washington; and38
(e)(i) Where the person supplies natural gas in amounts that 39
would result in exceeding 25,000 metric tons of carbon dioxide 40
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equivalent emissions if fully combusted or oxidized, excluding the 1
amounts for fuel products that are produced or imported with a 2
documented final point of delivery outside of Washington and 3
combusted outside of Washington, and excluding the amounts: (A) 4
Supplied to covered entities under (a) through (d) of this 5
subsection; and (B) delivered to opt-in entities; 6
(ii) Where the person who is not a natural gas company and has a 7
tariff with a natural gas company to deliver to an end-use customer 8
in the state in amounts that would result in exceeding 25,000 metric 9
tons of carbon dioxide equivalent emissions if fully combusted or 10
oxidized, excluding the amounts: (A) Supplied to covered entities 11
under (a) through (d) of this subsection; and (B) the amounts 12
delivered to opt-in entities; 13
(iii) Where the person is an end-use customer in the state who 14
directly purchases natural gas from a person that is not a natural 15
gas company and has the natural gas delivered through an interstate 16
pipeline to a distribution system owned by the purchaser in amounts 17
that would result in exceeding 25,000 metric tons of carbon dioxide 18
equivalent emissions if fully combusted or oxidized, excluding the 19
amounts: (A) Supplied to covered entities under (a) through (d) of 20
this subsection; and (B) delivered to opt-in entities.21
(2) ((A person is a covered entity as of the beginning of the 22
second compliance period and all subsequent compliance periods if the 23
person reported emissions under RCW 70A.15.2200 or provided emissions 24
data as required by this chapter for any calendar year from 2023 25
through 2025, where the person owns or operates a waste to energy 26
facility utilized by a county and city solid waste management program 27
and the facility's emissions equal or exceed 25,000 metric tons of 28
carbon dioxide equivalent.29
(3))) A person is a covered entity as of the beginning of the 30
third compliance period, and all subsequent compliance periods if the 31
person reported emissions under RCW 70A.15.2200 or provided emissions 32
data as required by this chapter for 2027 or 2028, where the person 33
owns or operates a railroad company, as that term is defined in RCW 34
81.04.010, and the railroad company's emissions equal or exceed 35
25,000 metric tons of carbon dioxide equivalent. 36
(((4))) (3) When a covered entity reports, during a compliance 37
period, emissions from a facility under RCW 70A.15.2200 that are 38
below the thresholds specified in subsection (1) ((or (2))) of this 39
section, the covered entity continues to have a compliance obligation 40
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through the current compliance period. When a covered entity reports 1
emissions below the threshold for each year during an entire 2
compliance period, or has ceased all processes at the facility 3
requiring reporting under RCW 70A.15.2200, the entity is no longer a 4
covered entity as of the beginning of the subsequent compliance 5
period unless the department provides notice at least 12 months 6
before the end of the compliance period that the facility's emissions 7
were within 10 percent of the threshold and that the person will 8
continue to be designated as a covered entity in order to ensure 9
equity among all covered entities. Whenever a covered entity ceases 10
to be a covered entity, the department shall notify the appropriate 11
policy and fiscal committees of the legislature of the name of the 12
entity and the reason the entity is no longer a covered entity.13
(((5))) (4) For types of emission sources described in subsection 14
(1) of this section that begin or modify operation after January 1, 15
2023, ((and types of emission sources described in subsection (2) of 16
this section that begin or modify operation after 2027, )) coverage 17
under the program starts in the calendar year in which emissions from 18
the source exceed the applicable thresholds in subsection (1) ((or 19
(2))) of this section, or upon formal notice from the department that 20
the source is expected to exceed the applicable emissions threshold, 21
whichever happens first. Sources meeting these conditions are 22
required to transfer their first allowances on the first transfer 23
deadline of the year following the year in which their emissions were 24
equal to or exceeded the emissions threshold. 25
(((6))) (5) For emission sources described in subsection (1) of 26
this section that are in operation or otherwise active between 2015 27
and 2019 but were not required to report emissions for those years 28
under RCW 70A.15.2200 for the reporting periods between 2015 and 29
2019, coverage under the program starts in the calendar year 30
following the year in which emissions from the source exceed the 31
applicable thresholds in subsection (1) of this section as reported 32
pursuant to RCW 70A.15.2200 or provided as required by this chapter, 33
or upon formal notice from the department that the source is expected 34
to exceed the applicable emissions threshold for the first year that 35
source is required to report emissions, whichever happens first. 36
Sources meeting these criteria are required to transfer their first 37
allowances on the first transfer deadline of the year following the 38
year in which their emissions, as reported under RCW 70A.15.2200 or 39
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provided as required by this chapter, were equal to or exceeded the 1
emissions threshold. 2
(((7))) (6) The following emissions are exempt from coverage in 3
the program, regardless of the emissions reported under RCW 4
70A.15.2200 or provided as required by this chapter:5
(a) Emissions from the combustion of aviation fuels;6
(b) Emissions from watercraft fuels supplied in Washington that 7
are combusted outside of Washington; 8
(c) Emissions from a coal-fired electric generation facility 9
exempted from additional greenhouse gas limitations, requirements, or 10
performance standards under RCW 80.80.110; 11
(d) Carbon dioxide emissions from the combustion of biomass or 12
biofuels; 13
(e)(i) Motor vehicle fuel or special fuel that is used 14
exclusively for agricultural purposes by a farm fuel user. This 15
exemption is available only if a buyer of motor vehicle fuel or 16
special fuel provides the seller with an exemption certificate in a 17
form and manner prescribed by the department. For the purposes of 18
this subsection, "agricultural purposes" and "farm fuel user" have 19
the same meanings as provided in RCW 82.08.865. 20
(ii) The department must determine a method for expanding the 21
exemption provided under (e)(i) of this subsection to include fuels 22
used for the purpose of transporting agricultural products on public 23
highways. The department must maintain this expanded exemption for a 24
period of five years, in order to provide the agricultural sector 25
with a feasible transition period; 26
(f) Emissions from facilities with North American industry 27
classification system code 92811 (national security); ((and))28
(g) Emissions from municipal solid waste landfills that are 29
subject to, and in compliance with, chapter 70A.540 RCW; and30
(h) Emissions from a waste to energy facility utilized by a 31
county and city solid waste management program permitted to receive 32
solid waste before 1992 that is subject to, and in compliance with, 33
chapter 70A.15 RCW and chapter 173-441 WAC. 34
(((8))) (7) The department shall not require multiple covered 35
entities to have a compliance obligation for the same emissions. The 36
department may by rule authorize refineries, fuel suppliers, 37
facilities using natural gas, and natural gas utilities to provide by 38
agreement for the assumption of the compliance obligation for fuel or 39
natural gas supplied and combusted in the state. The department must 40
p. 5 SB 5703
be notified of such an agreement at least 12 months prior to the 1
compliance obligation period for which the agreement is applicable.2
(((9))) (8)(a) The legislature intends to promote a growing and 3
sustainable economy and to avoid leakage of emissions from 4
manufacturing to other locations. The legislature further intends to 5
see innovative new businesses locate and grow in Washington that 6
contribute to Washington's prosperity and environmental objectives.7
(b) Consistent with the intent of the legislature to avoid the 8
leakage of emissions to other jurisdictions, in achieving the state's 9
greenhouse gas limits in RCW 70A.45.020, the state, including lead 10
agencies under chapter 43.21C RCW, shall pursue the limits in a 11
manner that recognizes that the siting and placement of new or 12
expanded best-in-class facilities with lower carbon emitting 13
processes is in the economic and environmental interests of the state 14
of Washington. 15
(c) In conducting a life-cycle analysis, if required, for new or 16
expanded facilities that require review under chapter 43.21C RCW, a 17
lead agency must evaluate and attribute any potential net cumulative 18
greenhouse gas emissions resulting from the project as compared to 19
other existing facilities or best available technology including 20
best-in-class facilities and emerging lower carbon processes that 21
supply the same product or end use. The department may adopt rules to 22
determine the appropriate threshold for applying this analysis.23
(d) Covered emissions from an entity that is or will be a covered 24
entity under this chapter may not be the basis for denial of a permit 25
for a new or expanded facility. Covered emissions must be included in 26
the analysis undertaken pursuant to (c) of this subsection. Nothing 27
in this subsection requires a lead agency or a permitting agency to 28
approve or issue a permit to a permit applicant, including to a new 29
or expanded fossil fuel project. 30
(e) A lead agency under chapter 43.21C RCW or a permitting agency 31
shall allow a new or expanded facility that is a covered entity or 32
opt-in entity to satisfy a mitigation requirement for its covered 33
emissions under this chapter and under any greenhouse gas emission 34
mitigation requirements for covered emissions under chapter 43.21C 35
RCW by submitting to the department the number of compliance 36
instruments equivalent to its covered emissions during a compliance 37
period. 38
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