All Roll Calls
Yes: 144 • No: 95
WashingtonHB 22512025-2026 Regular SessionHouseWALLET
Concerning climate commitment act accounts.
Sponsored By: Joe Fitzgibbon (Democratic)
Became Law
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 8 benefits, 3 costs, 3 mixed.
State pilot to repay prescribed fire losses
The state can run a pilot fund to repay losses from prescribed fires or cultural burns on department‑protected lands and on tribal lands with agreements. The office of risk management may pay up to $2,000,000 per claim, if money is appropriated. The pilot ends June 30, 2033, and leftover funds move to the climate capital account.
Where carbon auction money goes
The law creates new operating and capital accounts to hold carbon‑auction money. Starting in fiscal year 2028, the first $25,000,000 each year (adjusted for inflation) goes to administration. The rest is split 73% to the transportation account, 12% to the operating account (capped at $80,000,000 a year), and 15% to the capital account, with special rules for fiscal year 2029. At least 25% of two‑year budgets from the operating and capital accounts go to clean water and healthy forests. Old climate accounts are repealed and remaining balances after the 2025–2027 biennium move into the new capital account. Penalties collected under the program now deposit into the operating account.
Better pay and benefits on funded projects
Projects paid from these climate accounts must meet higher labor standards. Workers must get employer‑paid sick leave, health benefits, and employer retirement contributions. Pay should align with living‑wage and pay‑equity practices. Projects must also open up jobs and contracts for local workers and diverse small businesses.
More climate investments for communities and tribes
Each two years, at least 35% of named climate investments must directly benefit vulnerable people in overburdened communities, with a goal of 40%. At least 10% must support projects backed by Indian tribes, and the law bans funding projects that violate tribal treaty rights or harm critical habitat. Agencies must do environmental justice reviews, report results, and, if they get more than $2,000,000, adopt community engagement plans. Agencies must offer early, meaningful tribal consultation and the department must run a tribal capacity grant program. The air quality and health disparities account can fund operating, capital, or transportation projects that deliver lasting environmental and climate‑resilience benefits. The legislature intends at least $50,000,000 per biennium for tribal relocation when revenue is $1,000,000,000 or more (otherwise at least 5%).
Transportation funds must cut carbon
Money in the climate transportation account can only fund projects that cut transportation emissions. Funding goes to active transportation, transit, ferries, rail, and vehicle and fuel electrification, not general highway uses. Agencies that spend this money must report estimated and actual emission cuts using the joint committee’s tool.
No sales tax on zero-emission buses
Transit agencies and federally recognized tribes can buy zero‑emission buses without paying state sales or use tax. Buyers give sellers a state exemption certificate. The treasurer moves money each quarter from the climate transportation account to the general fund to backfill. The exemption ends after total exemptions reach $14,000,000, expiring at the end of the next month. The department posts monthly updates and reports twice a year starting July 1, 2026.
Higher penalties for noncompliance
If a covered or opt‑in entity is short on compliance instruments, it must submit four allowances for each one missing within six months. The state can fine up to $10,000 per day for failing to submit penalty allowances, and up to $50,000 per day for certain auction rule violations. Penalties go to the operating account. Electric or natural gas utilities that pay a penalty must notify customers and the environmental justice council within three months.
Stronger clean fuels penalties and notice
The department can order fixes and set penalties under the clean fuels program. Examples include up to four times the market price per unretired deficit, up to $1,000 per misreported credit, up to $10,000 per day for late reports, and up to $25,000 per month for failing to register. Electric utilities that pay a penalty must notify their customers within three months. Collected penalties go to the climate transportation account.
New excise tax on ZEV credits
Starting May 20, 2025, surplus zero‑emission vehicle credits sold are taxed at 2% of the sale price. Banked credits are taxed each model year at 10% of the state’s average credit price per banked credit. Pooled credits are not taxed. Until June 30, 2027, 30% of revenue goes to the EV incentive account and 70% to the general fund; after July 1, 2027, that 70% goes to the climate transportation account. Penalties and interest apply to unpaid tax.
Riparian easements rules and funding goals
The Forest Practices Board must set clear rules for the riparian easement program, including applications, timber valuation, and review of compensation. The department performs needed timber cruises within budget limits, and no more than 50% of program funds can go to volume determinations. If compensated land is sold to a nonqualifying buyer within 10 years, repayment can be collected. The legislature intends at least $10,000,000 per biennium for riparian programs when projected revenue is $1,000,000,000 or more (otherwise at least 1%).
Limits on new state and local GHG charges
Cities and counties cannot impose charges or taxes based only on how much greenhouse gas someone emits. State agencies cannot create or enforce separate greenhouse gas pricing or caps for stationary sources outside what this law, earlier state law (as of July 1, 2022), or federal law allows. The law also preempts and requires repeal of a prior state rule chapter.
Public reports on climate account spending
The department must list every distribution from the named climate accounts and post reports. Through fiscal year 2027, reports are due by December 31 each year. Starting in the 2027–2029 biennium, reports are due every two years by December 31 of odd‑numbered years. Reports must name recipients, amounts, purposes, results, any verified greenhouse gas reductions and cost per ton, and show spending that benefits overburdened communities and tribal‑supported projects.
Linking to other markets needs review
The department can only link the program with another market after an environmental justice assessment and a public hearing. A program report is due to the legislature by December 1, 2027, and then annually one year after each compliance period. If a law blocks linking, the department must ask for legislation to enable it.
Tighter rules for carbon allowance auctions
Regular auctions are limited to four per year, with separate future‑vintage auctions at least twice a year. Covered and opt‑in entities may not buy more than 25% of an auction; general market participants are limited to 4% per auction and may not own more than 10% of annual allowances until linking rules change. The department must prevent collusion and market manipulation, and can cancel or deny participation for rule violations. Auction bidding details are confidential and not released to the public.
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Sponsors & Cosponsors
Sponsor
Joe Fitzgibbon
Democratic • House
Cosponsors
Brianna Thomas
Democratic • House
Lisa Parshley
Democratic • House
Mia Gregerson
Democratic • House
Roll Call Votes
House vote • 3/11/2026
Final Passage as Amended by the Senate
Yes: 54 • No: 40 • Other: 4
Senate vote • 3/6/2026
3rd Reading & Final Passage as Amended by the Senate
Yes: 34 • No: 14 • Other: 1
House vote • 2/16/2026
3rd Reading & Final Passage
Yes: 56 • No: 41 • Other: 1
Actions Timeline
Effective date 7/1/2027.
3/25/2026HouseChapter 219, 2026 Laws.
3/25/2026HouseGovernor signed.
3/25/2026legislatureDelivered to Governor.
3/12/2026legislaturePresident signed.
3/11/2026legislaturePassed final passage; yeas, 54; nays, 40; absent, 0; excused, 4.
3/11/2026HouseHouse concurred in Senate amendments.
3/11/2026HouseSpeaker signed.
3/11/2026legislatureThird reading, passed; yeas, 34; nays, 14; absent, 0; excused, 1.
3/6/2026HouseRules suspended. Placed on Third Reading.
3/6/2026HouseFloor amendment(s) adopted.
3/6/2026HouseCommittee amendment not adopted.
3/6/2026HousePlaced on second reading by Rules Committee.
3/5/2026HousePassed to Rules Committee for second reading.
3/2/2026HouseTRAN - Majority; do pass with amendment(s).
3/2/2026HouseMinority; without recommendation.
3/2/2026HouseMinority; do not pass.
3/2/2026HouseReferred to Transportation.
2/27/2026HouseAnd refer to Transportation.
2/26/2026HouseMinority; without recommendation.
2/26/2026HouseMinority; do not pass.
2/26/2026HouseWM - Majority; do pass with amendment(s).
2/26/2026HouseFirst reading, referred to Ways & Means.
2/18/2026HouseThird reading, passed; yeas, 56; nays, 41; absent, 0; excused, 1.
2/16/2026HouseRules suspended. Placed on Third Reading.
2/16/2026House
Bill Text
Session Law
3/31/2026
Bill as Passed Legislature
3/11/2026
Engrossed Second Substitute
2/16/2026
Second Substitute
2/11/2026
Substitute Bill
2/3/2026
Original Bill
1/12/2026
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