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WashingtonHB 19752025-2026 Regular SessionHouse

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)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Washington carbon limits and market oversight

Ecology must set yearly carbon allowance budgets to meet covered businesses’ share of Washington’s emissions limits. The 2030, 2040, and 2050 limits must each be met by December 31 of that year. Budgets must provide progressively equivalent reductions each year. Ecology must also study and forecast auction and resale prices, supply, demand, activity by participant type, and budget use by registered-entity categories. It must consider those findings when making rules and running the program.

Limits on adding regulated greenhouse gases

Ecology can add a gas to Washington’s greenhouse gas definition only through one of two routes. Congress or the U.S. Environmental Protection Agency must have designated it a greenhouse gas. Alternatively, the gas must be included in an emissions trading program already linked with Washington. Ecology must notify the appropriate legislative committees before adding the gas.

More reporting time for regulated businesses

Ecology can extend emissions-report deadlines when actions by a third party it relies on make timely data collection infeasible. Extensions can cover any combination of emissions years 2024–2030, with a final deadline no later than June 1, 2031. For affected years, Ecology can also delay or adjust yearly requirements to turn in a share of compliance instruments. These changes can use emergency rules and must keep the program workable and able to fulfill a linkage agreement. Covered businesses and businesses that opt in still must fully meet their obligations for each compliance period.

Earlier reserve allowances for Washington businesses

Ecology must set aside at least 2% of annual carbon allowances in a price reserve for 2023–2026. For 2027–2040, it must set aside 2% to 5%, keeping those allowances separate from regular auctions. To contain prices before market linkage, all reserve allowances scheduled through 2040 must become available during the second compliance period. Reserve auctions are separate and are triggered when earlier auction settlement prices exceed the reserve floor price. Only covered businesses and businesses that opt into the program can bid; household savings are not guaranteed.

Washington carbon price ceiling and increases

Beginning January 1, 2026, the carbon allowance price ceiling is $80 for calendar years 2026 and 2027. Afterward, it rises annually in proportion to the reserve auction floor price. Ecology must adjust the reserve’s tier 2 price to reflect the 2026–2027 ceiling. After Washington enters a linkage agreement, Ecology can match partners’ ceilings if they do not match Washington’s ceiling. A ceiling below the 2026–2027 level requires the director to find it necessary to enter a linkage agreement.

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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