The bill seeks to enhance Washington's carbon market by aligning it with the California-Quebec carbon market through amendments to the Revised Code of Washington (RCW) concerning greenhouse gas emissions and compliance instruments. Key changes include redefining "biomass-derived fuels" to require at least a 30% reduction in emissions compared to petroleum fuels and clarifying the definition of "imported electricity" to include emissions-free electricity from linked jurisdictions. The bill also establishes a four-year compliance period, outlines the Department of Ecology's regulatory role, and emphasizes environmental justice considerations for vulnerable communities.

Additionally, the legislation introduces new compliance mechanisms for covered entities, particularly focusing on railroad companies and their emissions reporting requirements. It allows for increased participation in emissions auctions, with a rise in the percentage of allowances that can be purchased, and sets criteria for emissions-intensive, trade-exposed manufacturing businesses to receive no-cost allowances. The bill also includes provisions for offset projects, monitoring of emissions, and participation of federal power marketing administrations as opt-in entities. Importantly, the act will take effect on January 1, 2025, contingent upon the approval of Initiative Measure No. 2117 in the 2024 general election.

Statutes affected:
Original Bill: 70A.65.010, 70A.02.010, 70A.65.070, 70A.65.110, 70A.65.100, 70A.45.020, 70A.65.170, 70A.65.200, 70A.65.310, 70A.15.2200
Substitute Bill: 70A.65.010, 70A.02.010, 70A.65.070, 70A.65.110, 70A.65.100, 70A.45.020, 70A.65.170, 70A.65.200, 70A.65.310, 70A.15.2200
Second Substitute: 70A.65.010, 70A.65.060, 70A.65.070, 70A.65.110, 70A.65.100, 70A.45.020, 70A.65.170, 70A.65.200, 70A.65.310, 70A.15.2200
Engrossed Second Substitute: 70A.65.010, 70A.65.060, 70A.65.070, 70A.65.110, 70A.65.100, 70A.45.020, 70A.65.170, 70A.65.200, 70A.65.310, 70A.15.2200
Bill as Passed Legislature: 70A.65.010, 70A.65.060, 70A.65.070, 70A.65.110, 70A.65.100, 70A.45.020, 70A.65.170, 70A.65.200, 70A.65.210, 70A.65.310, 70A.15.2200
Session Law: 70A.65.010, 70A.65.060, 70A.65.070, 70A.65.110, 70A.65.100, 70A.45.020, 70A.65.170, 70A.65.200, 70A.65.210, 70A.65.310, 70A.15.2200