Coal-fired electric plant

AN ACT Relating to eliminating preferential treatment related to 1
a coal-fired electric generating plant; amending RCW 70A.65.080 and 2
80.80.110; repealing RCW 82.08.811 and 82.12.811; and declaring an 3
emergency. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 70A.65.080 and 2025 c 282 s 2 are each amended to 6
read as follows: 7
(1) A person is a covered entity as of the beginning of the first 8
compliance period and all subsequent compliance periods if the person 9
reported emissions under RCW 70A.15.2200 for any calendar year from 10
2015 through 2019, or if additional data provided as required by this 11
chapter indicates that emissions for any calendar year from 2015 12
through 2019 equaled or exceeded any of the following thresholds, or 13
if the person is a first jurisdictional deliverer and imports 14
electricity into the state during the compliance period:15
(a) Where the person owns or operates a facility and the 16
facility's emissions equal or exceed 25,000 metric tons of carbon 17
dioxide equivalent; 18
(b) Where the person is a first jurisdictional deliverer and 19
generates electricity in the state and emissions associated with this 20
S-3885.1
SENATE BILL 6172
State of Washington 69th Legislature 2026 Regular Session
By Senators Liias, Hunt, Lovelett, Stanford, Chapman, Salomon,
Bateman, Frame, Nobles, Pedersen, and Saldaña
Read first time 01/15/26. Referred to Committee on Environment,
Energy & Technology.
p. 1 SB 6172
generation equals or exceeds 25,000 metric tons of carbon dioxide 1
equivalent; 2
(c)(i) Where the person is a first jurisdictional deliverer 3
importing electricity into the state and: 4
(A) For specified sources, the cumulative annual total of 5
emissions associated with the imported electricity exceeds 25,000 6
metric tons of carbon dioxide equivalent; 7
(B) For unspecified sources, the cumulative annual total of 8
emissions associated with the imported electricity exceeds 0 metric 9
tons of carbon dioxide equivalent; or 10
(C) For electricity purchased from a federal power marketing 11
administration pursuant to section 5 (b) of the Pacific Northwest 12
electric power planning and conservation act of 1980, P.L. 96-501, if 13
the department determines such electricity is not from a specified 14
source, the cumulative annual total of emissions associated with the 15
imported electricity exceeds 25,000 metric tons of carbon dioxide 16
equivalent. 17
(ii) In consultation with any linked jurisdiction to the program 18
created by this chapter, by October 1, 2026, the department, in 19
consultation with the department of commerce and the utilities and 20
transportation commission, shall adopt by rule a methodology for 21
addressing imported electricity associated with a centralized 22
electricity market; 23
(d) Where the person is a supplier of fossil fuel other than 24
natural gas and from that fuel 25,000 metric tons or more of carbon 25
dioxide equivalent emissions would result from the full combustion or 26
oxidation, excluding the amounts for fuel products that are produced 27
or imported with a documented final point of delivery outside of 28
Washington and combusted outside of Washington; and29
(e)(i) Where the person supplies natural gas in amounts that 30
would result in exceeding 25,000 metric tons of carbon dioxide 31
equivalent emissions if fully combusted or oxidized, excluding the 32
amounts for fuel products that are produced or imported with a 33
documented final point of delivery outside of Washington and 34
combusted outside of Washington, and excluding the amounts: (A) 35
Supplied to covered entities under (a) through (d) of this 36
subsection; and (B) delivered to opt-in entities; 37
(ii) Where the person who is not a natural gas company and has a 38
tariff with a natural gas company to deliver to an end-use customer 39
in the state in amounts that would result in exceeding 25,000 metric 40
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tons of carbon dioxide equivalent emissions if fully combusted or 1
oxidized, excluding the amounts: (A) Supplied to covered entities 2
under (a) through (d) of this subsection; and (B) the amounts 3
delivered to opt-in entities; 4
(iii) Where the person is an end-use customer in the state who 5
directly purchases natural gas from a person that is not a natural 6
gas company and has the natural gas delivered through an interstate 7
pipeline to a distribution system owned by the purchaser in amounts 8
that would result in exceeding 25,000 metric tons of carbon dioxide 9
equivalent emissions if fully combusted or oxidized, excluding the 10
amounts: (A) Supplied to covered entities under (a) through (d) of 11
this subsection; and (B) delivered to opt-in entities.12
(2) A person is a covered entity as of the beginning of the 13
second compliance period and all subsequent compliance periods if the 14
person reported emissions under RCW 70A.15.2200 or provided emissions 15
data as required by this chapter for any calendar year from 2023 16
through 2025, where the person owns or operates a waste to energy 17
facility utilized by a county and city solid waste management program 18
and the facility's emissions equal or exceed 25,000 metric tons of 19
carbon dioxide equivalent. 20
(3) A person is a covered entity as of the beginning of the third 21
compliance period, and all subsequent compliance periods if the 22
person reported emissions under RCW 70A.15.2200 or provided emissions 23
data as required by this chapter for 2027 or 2028, where the person 24
owns or operates a railroad company, as that term is defined in RCW 25
81.04.010, and the railroad company's emissions equal or exceed 26
25,000 metric tons of carbon dioxide equivalent. 27
(4) When a covered entity reports, during a compliance period, 28
emissions from a facility under RCW 70A.15.2200 that are below the 29
thresholds specified in subsection (1) or (2) of this section, the 30
covered entity continues to have a compliance obligation through the 31
current compliance period. When a covered entity reports emissions 32
below the threshold for each year during an entire compliance period, 33
or has ceased all processes at the facility requiring reporting under 34
RCW 70A.15.2200, the entity is no longer a covered entity as of the 35
beginning of the subsequent compliance period unless the department 36
provides notice at least 12 months before the end of the compliance 37
period that the facility's emissions were within 10 percent of the 38
threshold and that the person will continue to be designated as a 39
covered entity in order to ensure equity among all covered entities. 40
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Whenever a covered entity ceases to be a covered entity, the 1
department shall notify the appropriate policy and fiscal committees 2
of the legislature of the name of the entity and the reason the 3
entity is no longer a covered entity. 4
(5) For types of emission sources described in subsection (1) of 5
this section that begin or modify operation after January 1, 2023, 6
and types of emission sources described in subsection (2) of this 7
section that begin or modify operation after 2027, coverage under the 8
program starts in the calendar year in which emissions from the 9
source exceed the applicable thresholds in subsection (1) or (2) of 10
this section, or upon formal notice from the department that the 11
source is expected to exceed the applicable emissions threshold, 12
whichever happens first. Sources meeting these conditions are 13
required to transfer their first allowances on the first transfer 14
deadline of the year following the year in which their emissions were 15
equal to or exceeded the emissions threshold. 16
(6) For emission sources described in subsection (1) of this 17
section that are in operation or otherwise active between 2015 and 18
2019 but were not required to report emissions for those years under 19
RCW 70A.15.2200 for the reporting periods between 2015 and 2019, 20
coverage under the program starts in the calendar year following the 21
year in which emissions from the source exceed the applicable 22
thresholds in subsection (1) of this section as reported pursuant to 23
RCW 70A.15.2200 or provided as required by this chapter, or upon 24
formal notice from the department that the source is expected to 25
exceed the applicable emissions threshold for the first year that 26
source is required to report emissions, whichever happens first. 27
Sources meeting these criteria are required to transfer their first 28
allowances on the first transfer deadline of the year following the 29
year in which their emissions, as reported under RCW 70A.15.2200 or 30
provided as required by this chapter, were equal to or exceeded the 31
emissions threshold. 32
(7) The following emissions are exempt from coverage in the 33
program, regardless of the emissions reported under RCW 70A.15.2200 34
or provided as required by this chapter: 35
(a) Emissions from the combustion of aviation fuels;36
(b) Emissions from watercraft fuels supplied in Washington that 37
are combusted outside of Washington; 38
(c) Emissions from a coal-fired electric generation facility 39
exempted from additional greenhouse gas limitations, requirements, or 40
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performance standards under RCW 80.80.110, for emissions that 1
occurred prior to January 1, 2026; 2
(d) Carbon dioxide emissions from the combustion of biomass or 3
biofuels; 4
(e)(i) Motor vehicle fuel or special fuel that is used 5
exclusively for agricultural purposes by a farm fuel user. This 6
exemption is available only if a buyer of motor vehicle fuel or 7
special fuel provides the seller with an exemption certificate in a 8
form and manner prescribed by the department. Prior to January 1, 9
2030, this exemption is available whether motor vehicle fuel or 10
special fuel is used to propel a motor vehicle or not, but beginning 11
January 1, 2030, this exemption only applies to motor vehicle fuel or 12
special fuel that the farm fuel user uses to propel a motor vehicle.13
(ii) The department must determine a method for expanding the 14
exemption provided under (e)(i) of this subsection to include fuels 15
used for the purpose of transporting agricultural products on public 16
highways. The department must maintain this expanded exemption until 17
December 31, 2029, in order to provide the agricultural sector with a 18
feasible transition period. 19
(iii) For the purposes of this subsection: 20
(A) "Agricultural purposes" and "farm fuel user" have the same 21
meanings as provided in RCW 82.08.865; 22
(B) "Motor vehicle fuel" means gasoline, the chief use of which 23
is as a fuel for the propulsion of motor vehicles or vessels; and24
(C) "Special fuel" means diesel, liquefied petroleum gas (also 25
called propane), and biodiesel; 26
(f) Emissions from facilities with North American industry 27
classification system code 92811 (national security); and28
(g) Emissions from municipal solid waste landfills that are 29
subject to, and in compliance with, chapter 70A.540 RCW.30
(8) The department shall not require multiple covered entities to 31
have a compliance obligation for the same emissions. The department 32
may by rule authorize refineries, fuel suppliers, facilities using 33
natural gas, and natural gas utilities to provide by agreement for 34
the assumption of the compliance obligation for fuel or natural gas 35
supplied and combusted in the state. The department must be notified 36
of such an agreement at least 12 months prior to the compliance 37
obligation period for which the agreement is applicable.38
(9)(a) The legislature intends to promote a growing and 39
sustainable economy and to avoid leakage of emissions from 40
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manufacturing to other locations. The legislature further intends to 1
see innovative new businesses locate and grow in Washington that 2
contribute to Washington's prosperity and environmental objectives.3
(b) Consistent with the intent of the legislature to avoid the 4
leakage of emissions to other jurisdictions, in achieving the state's 5
greenhouse gas limits in RCW 70A.45.020, the state, including lead 6
agencies under chapter 43.21C RCW, shall pursue the limits in a 7
manner that recognizes that the siting and placement of new or 8
expanded best-in-class facilities with lower carbon emitting 9
processes is in the economic and environmental interests of the state 10
of Washington. 11
(c) In conducting a life-cycle analysis, if required, for new or 12
expanded facilities that require review under chapter 43.21C RCW, a 13
lead agency must evaluate and attribute any potential net cumulative 14
greenhouse gas emissions resulting from the project as compared to 15
other existing facilities or best available technology including 16
best-in-class facilities and emerging lower carbon processes that 17
supply the same product or end use. The department may adopt rules to 18
determine the appropriate threshold for applying this analysis.19
(d) Covered emissions from an entity that is or will be a covered 20
entity under this chapter may not be the basis for denial of a permit 21
for a new or expanded facility. Covered emissions must be included in 22
the analysis undertaken pursuant to (c) of this subsection. Nothing 23
in this subsection requires a lead agency or a permitting agency to 24
approve or issue a permit to a permit applicant, including to a new 25
or expanded fossil fuel project. 26
(e) A lead agency under chapter 43.21C RCW or a permitting agency 27
shall allow a new or expanded facility that is a covered entity or 28
opt-in entity to satisfy a mitigation requirement for its covered 29
emissions under this chapter and under any greenhouse gas emission 30
mitigation requirements for covered emissions under chapter 43.21C 31
RCW by submitting to the department the number of compliance 32
instruments equivalent to its covered emissions during a compliance 33
period. 34
Sec. 2. RCW 80.80.110 and 2011 c 180 s 107 are each amended to 35
read as follows: 36
No state agency or political subdivision of the state may adopt 37
or impose a greenhouse gas emission performance standard, or other 38
operating or financial requirement or limitation relating to 39
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greenhouse gas emissions, on a coal-fired electric generation 1
facility located in Washington in operation on or before July 22, 2
2011, or upon an electric utility's long-term purchase of coal 3
transition power, that is inconsistent with or in addition to the 4
provisions of RCW 80.80.040 or the memorandum of agreement entered 5
into under RCW 80.80.100. This section does not apply after December 6
31, 2025, to a coal-fired electric generation facility subject to the 7
memorandum of agreement entered into under RCW 80.80.100 that remains 8
in operation after December 31, 2025.9
NEW SECTION. Sec. 3. The following acts or parts of acts are 10
each repealed:11
(1) RCW 82.08.811 (Exemptions— Coal used at coal-fired thermal 12
electric generation facility — Application— Demonstration of progress 13
in air pollution control — Notice of emissions violations — 14
Reapplication— Payments on cessation of operation) and 2020 c 20 s 15
1474 & 1997 c 368 s 4; and 16
(2) RCW 82.12.811 (Exemptions— Coal used at coal-fired thermal 17
electric generation facility — Application— Demonstration of progress 18
in air pollution control — Notice of emissions violations — 19
Reapplication— Payments on cessation of operation) and 2020 c 20 s 20
1480 & 1997 c 368 s 6. 21
NEW SECTION. Sec. 4. This act is necessary for the immediate 22
preservation of the public peace, health, or safety, or support of 23
the state government and its existing public institutions, and takes 24
effect immediately.25
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