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WashingtonHB 22512025-2026 Regular SessionHouseWALLET

Concerning climate commitment act accounts.

Sponsored By: Joe Fitzgibbon (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 8 benefits, 1 costs, 3 mixed.

Air quality funds gain spending options

The air quality and health disparities account can now support operating, capital, or transportation budget purposes. Spending requires state budget approval and must provide lasting environmental benefits and greater climate resilience. Existing safeguards still bar projects that violate tribal treaty rights or cause significant, long-term harm to critical habitat or ecological functions.

Climate funds must benefit vulnerable communities

Agencies must direct at least 35% of covered climate investments toward meaningful benefits for vulnerable people in communities facing heavy environmental burdens. The goal is 40%, and the law also intends at least 10% for tribal-supported projects each two-year budget period. One investment can count toward both targets, with priority for qualifying projects proposed or run by tribes. Covered agencies must assess significant actions for environmental justice effects. Executive agencies and colleges outside the covered-agency group must adopt outreach plans when listed-account funding exceeds $2 million per two-year period, including outreach across language barriers.

Climate projects must protect tribes and habitat

Projects paid for by either the climate operating or capital account cannot violate tribal treaty rights. They also cannot cause significant, long-term harm to critical habitat or ecological functions. Capital spending must follow scientific assessments of current and future climate risks. This includes risks addressed by Washington's current climate resilience strategy.

Funding targets support tribal climate work

The capital account can support tribal efforts to reduce emissions and adapt to climate risks. This includes relocation from sea-level rise, flooding, and other climate threats. When Ecology's latest baseline climate revenue forecast reaches $1 billion for a two-year budget period, the law intends at least $50 million for this work. Below $1 billion, the intended funding is at least 5% of projected revenue. These are funding goals, not guaranteed payments.

Climate money can fund household help

The law creates a climate operating account; spending requires approval through the state budget. Allowed uses include the Working Families' Tax Credit, lower-income energy help, clean energy, electric vehicles, and worker transition support. It also allows tribal climate work, community pollution relief, clean water and forests, waste reduction, and payments to agricultural fuel buyers. Ecology administration is capped at $25 million per fiscal year, adjusted by the specified inflation measure. Spending is intended to add to existing support, and specified climate penalties now fund this account without changing penalty amounts.

Climate project funding moves into one account

Beginning July 1, 2027, the new climate capital account supports clean energy, efficiency, electric-vehicle infrastructure, and climate resilience. It also allows lower-income energy help, tribal climate work, clean water, and healthy forests; spending requires state budget approval. The climate investment, climate commitment, and natural climate solutions accounts end July 1, 2027. Their leftover balances move into the capital account after the 2025–2027 budget closes, and later deposits also move there. Any prescribed fire claims money left when that provision expires on June 30, 2033, also goes to the capital account.

Funding goals support clean water and forests

The law intends at least 25% of combined operating and capital appropriations each two-year budget period for clean water and healthy forests. It also sets a capital funding goal for forest easements, agricultural conservation easements, and similar projects along rivers and streams. The goal is at least $10 million when Ecology's latest baseline climate revenue forecast reaches $1 billion for that period. Below $1 billion, the goal is at least 1% of projected revenue. These goals do not guarantee individual payments.

Climate-funded workers get stronger labor protections

Projects funded by the climate operating account must meet high labor standards. These include employer-paid sick leave and health benefits, employer retirement contributions, and career-development opportunities. Projects must consider living-wage measures and pay equity and help address employment barriers for people affected by the justice system. They must also maximize local workers' and diverse businesses' access to economic benefits.

Climate auction money gets new funding limits

In fiscal year 2028, the operating account first gets $25 million; later years adjust that amount using the specified inflation measure. Remaining auction money generally goes 73% to transportation, 12% to operating, and 15% to capital. Fiscal year 2029 instead gives transportation $300 million or 73%, whichever is greater. That year's operating and capital shares use the law's special 50%-of-the-remainder formula. Once annual transportation deposits reach $359.117 million or operating deposits reach $80 million, further applicable deposits go to capital.

Climate funding recipients must report results

Ecology must require recipients of listed climate account funds to report how they spend the money and what it achieves. Reports include recipients, amounts, purposes, actual results, and emissions reductions and related costs when applicable. They also track benefits to overburdened communities and tribal-supported spending. Ecology must submit reports and update its website by December 31 after each fiscal year through fiscal year 2027. Starting with the 2027–2029 budget period, reporting shifts to December 31 of each odd-numbered year.

Tribes gain consultation on climate projects

Tribal consultation requirements cover funding from the new climate operating and capital accounts when decisions or projects may affect tribal resources or rights. Agencies and local governments administering covered funding must follow consultation and preapplication requirements. Coverage also includes new appropriations exceeding $2 million per two-year budget period that fit Executive Order 21-02's description. Applicants face added steps before applying.

Vehicle credit taxes shift transportation funding

Beginning July 1, 2027, 70% of zero-emission vehicle credit tax revenue goes to the Climate Commitment Act transportation account. This replaces the route to the carbon emissions reduction account. The remaining 30% continues to go to the electric vehicle incentive account. This provision changes where tax money goes, not household tax liability.

Sponsors & Cosponsors

Sponsor

  • Joe Fitzgibbon

    Democratic • House

Cosponsors

  • Brianna Thomas

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Mia Gregerson

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 144 • No: 95

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

  1. Effective date 7/1/2027.

    3/25/2026House

  2. Chapter 219, 2026 Laws.

    3/25/2026House

  3. Governor signed.

    3/25/2026legislature

  4. Delivered to Governor.

    3/12/2026legislature

  5. Passed final passage; yeas, 54; nays, 40; absent, 0; excused, 4.

    3/11/2026House

  6. House concurred in Senate amendments.

    3/11/2026House

  7. Speaker signed.

    3/11/2026legislature

  8. President signed.

    3/11/2026legislature

  9. Third reading, passed; yeas, 34; nays, 14; absent, 0; excused, 1.

    3/6/2026House

  10. Rules suspended. Placed on Third Reading.

    3/6/2026House

  11. Floor amendment(s) adopted.

    3/6/2026House

  12. Committee amendment not adopted.

    3/6/2026House

  13. Placed on second reading by Rules Committee.

    3/5/2026House

  14. Passed to Rules Committee for second reading.

    3/2/2026House

  15. TRAN - Majority; do pass with amendment(s).

    3/2/2026House

  16. Minority; without recommendation.

    3/2/2026House

  17. Minority; do not pass.

    3/2/2026House

  18. Referred to Transportation.

    2/27/2026House

  19. And refer to Transportation.

    2/26/2026House

  20. Minority; without recommendation.

    2/26/2026House

  21. Minority; do not pass.

    2/26/2026House

  22. WM - Majority; do pass with amendment(s).

    2/26/2026House

  23. First reading, referred to Ways & Means.

    2/18/2026House

  24. Third reading, passed; yeas, 56; nays, 41; absent, 0; excused, 1.

    2/16/2026House

  25. Rules suspended. Placed on Third Reading.

    2/16/2026House

Bill Text

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