WashingtonWashington directs climate auction money to transportation and climate projects
Starting July 1, 2027, Washington directs climate auction money to transportation, operating, and capital accounts, with spending from two accounts requiring lawmakers' approval.
What it does
Starting July 1, 2027, auction money goes to transportation, operating, and capital accounts under set formulas. Lawmakers must approve spending from the operating and capital accounts.
The accounts may fund cleaner energy, help with lower-income households' energy costs, and support clean water and forests. Funded operating projects must meet worker standards and protect treaty rights and critical habitats.
The department must report who received climate account money, how it was used, and whether it cut emissions or benefited overburdened communities.
Argument forSetting aside money for clean water and healthy forests could help communities prepare for climate impacts, if lawmakers approve the spending.
Argument againstBecause lawmakers must approve spending from the operating and capital accounts, climate projects could wait for funding decisions before they can move ahead.
More detail
The law directs auction receipts to transportation, operating, and capital accounts. The rules cover money raised by auctions of greenhouse gas allowances under Washington's climate program. Money in the operating and capital accounts may be spent only after lawmakers approve it. After a yearly deposit of $25 million to the operating account in fiscal year 2028, adjusted in later years, remaining receipts follow percentage formulas. The operating and transportation shares have annual limits, and fiscal year 2029 has a separate formula. The law takes effect July 1, 2027. The first specified yearly operating account deposit is for fiscal year 2028; fiscal year 2029 has a separate distribution formula.
The law lists purposes for spending from the operating and capital accounts. The accounts may support climate and energy projects, help lower-income households with energy costs, and fund clean water and forest work, among other listed purposes. Spending requires lawmakers' approval. The legislature intends at least 25 percent of total biennial appropriations from both accounts to support clean water and healthy forest investments. Operating account projects must meet labor standards and maximize local workers' and diverse businesses' access to economic benefits. Neither account may fund projects that violate tribal treaty rights or cause significant long-term damage to critical habitat or ecological functions. The accounts and their listed spending purposes take effect July 1, 2027.
The law requires the department of ecology to report on spending from the listed climate accounts. The reporting duty covers distributions from the climate accounts identified in the law. The report must name funding recipients, amounts, purposes, and actual uses. It must also describe verifiable emissions cuts and spending that benefits overburdened communities or has tribal support. Through fiscal year 2027, reports are due by December 31 after each fiscal year. Starting in the 2027–2029 biennium, reports are due by December 31 of each odd-numbered year after each biennium.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 25Effective date 7/1/2027.Latest
- Mar 25Chapter 219, 2026 Laws.Major
- Mar 25Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 11President signed.Major
- Vote recorded Final Passage as Amended by the Senate (#2). Result: pass.Lower
- Mar 11Speaker signed.Passed Senate
- Mar 11Passed final passage; yeas, 54; nays, 40; absent, 0; excused, 4.Passed House
- Mar 11House concurred in Senate amendments.
- Mar 6Third reading, passed; yeas, 34; nays, 14; absent, 0; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage as Amended by the Senate (#32). Result: pass.Upper
- Mar 6Rules suspended. Placed on Third Reading.Minor
- Mar 6Floor amendment(s) adopted.
- Mar 6Committee amendment not adopted.Minor
- Mar 5Placed on second reading by Rules Committee.Minor
- Mar 2Passed to Rules Committee for second reading.
- Mar 2Minority; without recommendation.Minor
- Mar 2Minority; do not pass.Minor
- Mar 2TRAN - Majority; do pass with amendment(s).Minor
- Mar 2Executive action taken in the Senate Committee on Transportation at 1:30 PM.
- Feb 27Public hearing in the Senate Committee on Transportation at 2:30 PM.
- Feb 27Referred to Transportation.Minor
- Feb 26And refer to Transportation.Minor
- Feb 26Minority; without recommendation.Minor
- Feb 26Minority; do not pass.Minor
- Feb 26WM - Majority; do pass with amendment(s).Minor
- Feb 26Executive action taken in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 24Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
- Feb 18First reading, referred to Ways & Means.Minor
- Feb 16Third reading, passed; yeas, 56; nays, 41; absent, 0; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage (#15). Result: pass.Lower
- Feb 16Rules suspended. Placed on Third Reading.Minor
- Feb 16Floor amendment(s) adopted.
- Feb 162nd substitute bill substituted (TR 26).Major
- Feb 12Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 9Referred to Rules 2 Review.Minor
- Feb 9Minority; without recommendation.Minor
- Feb 9Minority; do not pass.Minor
- Feb 9TR - Majority; 2nd substitute bill be substituted, do pass.Major
- Feb 9Executive action taken in the House Committee on Transportation at 1:30 PM.
- Feb 6Public hearing in the House Committee on Transportation at 10:30 AM.
- Feb 3Referred to Transportation.Minor
- Jan 29Minority; without recommendation.Minor
- Jan 29Minority; do not pass.Minor
- Jan 29APP - Majority; 1st substitute bill be substituted, do pass.Major
- Jan 29Executive action taken in the House Committee on Appropriations at 4:00 PM.
- Jan 19Public hearing in the House Committee on Appropriations at 4:00 PM.
- Jan 12First reading, referred to Appropriations.Minor
- Jan 5Prefiled for introduction.Introduced
Environment & EnergyTaxes & BudgetTransportation