WashingtonHB 19752025-2026 Regular SessionHouseWALLET

Amending the climate commitment act by adjusting auction price containment mechanisms and ceiling prices, addressing the department of ecology's authority to amend rules to facilitate linkage with other jurisdictions, and providing for market dynamic analysis.

Sponsored By: Joe Fitzgibbon (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Law only takes effect if funded

This law is conditional. If the omnibus budget does not provide specific funding by June 30, 2025, the entire act is null and void.

Long-term cap budgets and updates

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.

Price caps and backstops for covered businesses

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.

Flexible reporting and compliance timing

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.

Public modeling of program costs

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.

New emissions reporting and checks

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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Sponsors & Cosponsors

Sponsor

  • Joe Fitzgibbon

    Democratic • House

Cosponsors

  • Lisa Parshley

    Democratic • House

  • Mary Dye

    Republican • House

Roll Call Votes

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

Actions Timeline

  1. Effective date 7/27/2025.

    5/17/2025House
  2. Chapter 320, 2025 Laws.

    5/17/2025House
  3. Governor signed.

    5/17/2025legislature
  4. Delivered to Governor.

    4/25/2025legislature
  5. President signed.

    4/24/2025legislature
  6. Speaker signed.

    4/23/2025legislature
  7. Passed final passage; yeas, 83; nays, 13; absent, 0; excused, 2.

    4/22/2025House
  8. House concurred in Senate amendments.

    4/22/2025House
  9. Third reading, passed; yeas, 45; nays, 3; absent, 0; excused, 1.

    4/15/2025House
  10. Rules suspended. Placed on Third Reading.

    4/15/2025House
  11. Committee amendment(s) adopted with no other amendments.

    4/15/2025House
  12. Placed on second reading by Rules Committee.

    4/11/2025House
  13. WM - Majority; do pass with amendment(s) by Environment, Energy & Technology.

    4/8/2025House
  14. Passed to Rules Committee for second reading.

    4/8/2025House
  15. Referred to Ways & Means.

    3/31/2025House
  16. And refer to Ways & Means.

    3/28/2025House
  17. Minority; do not pass.

    3/28/2025House
  18. ENET - Majority; do pass with amendment(s).

    3/28/2025House
  19. First reading, referred to Environment, Energy & Technology.

    3/12/2025House
  20. Third reading, passed; yeas, 84; nays, 11; absent, 0; excused, 3.

    3/10/2025House
  21. Rules suspended. Placed on Third Reading.

    3/10/2025House
  22. 2nd substitute bill substituted.

    3/10/2025House
  23. Rules Committee relieved of further consideration. Placed on second reading.

    3/9/2025House
  24. Referred to Rules 2 Review.

    2/28/2025House
  25. APP - Executive action taken by committee.

    2/27/2025House

Bill Text

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