WashingtonState agencies would study future allowances and job leakage risks
Ecology would recommend future allowance rules and study possible job and business effects for emissions-intensive, trade-exposed facilities.
What it does
If lawmakers do not adopt a future allowance schedule, eligible facilities would keep receiving no-cost allowances under the 2031–2034 rules after 2034.
By December 1, 2026, Ecology would recommend how to set facility allowances from 2035 through 2050, including possible reductions, adjustments, and auctions.
Ecology would commission a study of how emissions rules may affect jobs, investment, production, and business activity in affected industries.
Argument forThe studies and recommendations could help lawmakers design future allowance rules around emissions goals while considering jobs, investment, and leakage risks.
Argument againstContinuing no-cost allowances without a legislative schedule could delay decisions about emissions reductions and keep facilities on older allowance rules longer.
More detail
Covered facilities would continue receiving allowances under the 2031–2034 rules if lawmakers do not adopt a future allowance schedule. The rule applies to facilities classified as emissions-intensive and trade-exposed under the climate commitment program. The continuation applies only if the legislature does not adopt an allowance schedule for January 1, 2035, through January 1, 2050. The continuation would apply from January 1, 2035, until the legislature adopts a schedule.
The Department of Ecology would give lawmakers recommendations for allowance schedules and related emissions policies. The recommendations concern emissions-intensive, trade-exposed facilities covered by the climate commitment program. The recommendations must address leakage risks, state emissions limits, allowance budgets, facility emissions reductions, and possible auctioning of some no-cost allowances. The department must consider input from affected facilities, covered entities, environmental advocates, overburdened communities, tribes, experts, and the public. The recommendations would be due December 1, 2026, and this reporting section would expire July 1, 2029.
The Department of Ecology, working with the Department of Commerce, would hire an independent third party to study emissions and job leakage risks. The study would cover emissions-intensive, trade-exposed facilities and their affected industries. The study must estimate effects on employment, investment, production, and leakage risk for each affected industry. The completed report must be published on the Department of Ecology's website. The study would be completed by December 1, 2028, and this section would expire July 1, 2029.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Effective date 6/11/2026.Latest
- Mar 30Chapter 253, 2026 Laws PV.Major
- Mar 30Governor Bob Ferguson partially vetoed.Minor
- Mar 12Delivered to Governor.To Governor
- Mar 11Speaker signed.Major
- Mar 11President signed.Passed House
- Mar 10Passed final passage; yeas, 29; nays, 20; absent, 0; excused, 0.Passed Senate
- Vote recorded Final Passage as Amended by the House (#23). Result: pass.Upper
- Mar 10Senate concurred in House amendments.
- Mar 6Third reading, passed; yeas, 57; nays, 38; absent, 0; excused, 3.Minor
- Vote recorded Final Passage as Amended by the House (#1). Result: pass.Lower
- Mar 6Rules suspended. Placed on Third Reading.Minor
- Mar 6Floor amendment(s) adopted.
- Mar 6Committee amendment not adopted.Minor
- Mar 4Rules Committee relieved of further consideration. Placed on second reading.Minor
- Mar 2Referred to Rules 2 Review.Minor
- Mar 2Minority; without recommendation.Minor
- Mar 2Minority; do not pass.Minor
- Mar 2APP - Majority; do pass with amendment(s) by Environment & Energy.Minor
- Mar 2Executive action taken in the House Committee on Appropriations at 10:30 AM.
- Feb 27Public hearing in the House Committee on Appropriations at 10:30 AM.
- Feb 25Referred to Appropriations.Minor
- Feb 24Minority; do not pass.Minor
- Feb 24ENVI - Majority; do pass with amendment(s).Minor
- Feb 24Executive action taken in the House Committee on Environment & Energy at 4:00 PM.
- Feb 18Public hearing in the House Committee on Environment & Energy at 10:30 AM.
- Feb 14First reading, referred to Environment & Energy.Minor
- Feb 12Third reading, passed; yeas, 27; nays, 22; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage (#18). Result: pass.Upper
- Feb 12Rules suspended. Placed on Third Reading.Minor
- Feb 12Floor amendment(s) adopted.
- Feb 10Placed on second reading by Rules Committee.Minor
- Feb 9Passed to Rules Committee for second reading.
- Feb 9Minority; do not pass.Minor
- Feb 9WM - Majority; do pass.Minor
- Feb 9Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.
- Feb 6Public hearing in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 4Referred to Ways & Means.Minor
- Feb 3Minority; do not pass.Minor
- Feb 3And refer to Ways & Means.Minor
- Feb 3ENET - Majority; do pass.Minor
- Feb 3Executive action taken in the Senate Committee on Environment, Energy & Technology at 1:30 PM.
- Jan 28Public hearing in the Senate Committee on Environment, Energy & Technology at 8:00 AM.
- Jan 20First reading, referred to Environment, Energy & Technology.Introduced
Environment & EnergyEconomy & JobsTrade