All Roll Calls
Yes: 212 • No: 27
Sponsored By: Joe Fitzgibbon (Democratic)
Became Law
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6 provisions identified: 2 benefits, 0 costs, 4 mixed.
This law is conditional. If the omnibus budget does not provide specific funding by June 30, 2025, the entire act is null and void.
Ecology adopts annual allowance budgets through 2040 by October 1, 2028. Budgets must put covered entities on track to meet the 2030, 2040, and 2050 limits and must adjust for any offsets used. Allowances can be banked and do not expire. Ecology completes program evaluations by December 31, 2027 and after the third, fifth, and sixth compliance periods, and must adjust budgets if needed; it also explains what would trigger more changes. By October 1, 2026 Ecology adds to the baseline a share for new covered entities based on their emissions compared to 2015–2019 totals, with an option to exclude an emergency outlier year. If Washington links with another program, Ecology must align compliance period dates, but the first period still ends December 31, 2026.
The law sets a hard price ceiling of $80 per allowance in 2026 and 2027. After 2027, the ceiling rises each year with the reserve auction floor price. From 2027–2040, 2%–5% of each year’s allowances go into a price reserve, and all reserve allowances planned through 2040 are made available during the second compliance period. If the reserve runs out, Ecology sells price ceiling units only to entities that lack enough instruments for the current period; these cannot be traded and must be retired that period. Covered entities may use price ceiling units to meet their obligation. If Washington links to another program, Ecology can align the ceiling with that program, but not below $80 in 2026–2027 unless needed to link. Money from selling price ceiling units goes into a new account and must fund ton‑for‑ton, real and verifiable emission cuts.
When a third party such as EPA delays needed data, Ecology can set new due dates for any 2024–2030 reports, but no later than June 1, 2031. In those years, Ecology may also delay or change the annual percentage of compliance instruments that covered or opt‑in entities must transfer. This keeps the program workable when data arrive late.
Ecology studies the allowance market and posts the results. It reports prices, supply and demand, who trades, and how much of the budget each group uses. It also runs and posts economic models of the program. By December 31, 2026 it includes a linkage scenario and posts results, with updates by December 31, 2027 and every two years. Posted results show program benefits, the social cost of carbon, sector costs, and key assumptions.
Reporters must file an annual greenhouse gas report if emissions from a single facility or fuel sales reach 10,000 metric tons CO2e or more. Most reports are due March 31; electric power entities file by June 1. Ecology may require power entities to report emissions from electricity bought, sold, imported, exported, or exchanged. Reports must be verified if the reporter emits 25,000 metric tons CO2e or more, or has a compliance obligation that period; similar verification from a linked program can be accepted. Ecology can add gases to the greenhouse gas list only if Congress, EPA, or a linked program already lists the gas, and it must notify the Legislature first.
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Joe Fitzgibbon
Democratic • House
Lisa Parshley
Democratic • House
Mary Dye
Republican • House
All Roll Calls
Yes: 212 • No: 27
House vote • 4/22/2025
Final Passage as Amended by the Senate
Yes: 83 • No: 13 • Other: 2
Senate vote • 4/15/2025
3rd Reading & Final Passage as Amended by the Senate
Yes: 45 • No: 3 • Other: 1
House vote • 3/10/2025
3rd Reading & Final Passage
Yes: 84 • No: 11 • Other: 3
Effective date 7/27/2025.
Chapter 320, 2025 Laws.
Governor signed.
Delivered to Governor.
President signed.
Speaker signed.
Passed final passage; yeas, 83; nays, 13; absent, 0; excused, 2.
House concurred in Senate amendments.
Third reading, passed; yeas, 45; nays, 3; absent, 0; excused, 1.
Rules suspended. Placed on Third Reading.
Committee amendment(s) adopted with no other amendments.
Placed on second reading by Rules Committee.
WM - Majority; do pass with amendment(s) by Environment, Energy & Technology.
Passed to Rules Committee for second reading.
Referred to Ways & Means.
And refer to Ways & Means.
Minority; do not pass.
ENET - Majority; do pass with amendment(s).
First reading, referred to Environment, Energy & Technology.
Third reading, passed; yeas, 84; nays, 11; absent, 0; excused, 3.
Rules suspended. Placed on Third Reading.
2nd substitute bill substituted.
Rules Committee relieved of further consideration. Placed on second reading.
Referred to Rules 2 Review.
APP - Executive action taken by committee.
Session Law
5/22/2025
Bill as Passed Legislature
4/24/2025
Second Substitute
3/3/2025
Substitute Bill
2/21/2025
Original Bill
2/14/2025
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