The bill amends the Revised Code of Washington (RCW) to strengthen the clean fuels program, which is designed to reduce carbon intensity in transportation fuels. It establishes a mandate for a 45 percent reduction in greenhouse gas emissions from fuel units compared to 2017 levels by January 1, 2038, with interim reductions of five percent by January 1, 2026, and additional incremental reductions leading up to the 2038 target. The bill also introduces compliance obligations for regulated parties, allowing them to generate and trade credits for fuels with lower carbon intensity. To ensure adherence, it prescribes penalties for non-compliance, including fines for misreporting and failure to submit required reports, while the Department of Ecology is tasked with monitoring compliance and aligning the program with standards from other states.

In addition to the clean fuels program enhancements, the bill clarifies definitions and updates penalties related to environmental regulations. It introduces the term "Registered party" for regulated parties or credit generators and expands the definition of "Transportation fuel" to include electricity and gaseous fuels for vehicle propulsion. The bill also increases the maximum fine for gross misdemeanors from $10,000 to $10,000 and adjusts imprisonment terms from 360 days to 364 days. Furthermore, it establishes a clean fuels program account in the state treasury for fee collection, mandates a biennial workload analysis by the department with public review, and includes a provision ensuring the act's validity even if parts are deemed invalid. Overall, the bill aims to enhance regulatory clarity and enforcement mechanisms within environmental law.

Statutes affected:
Original Bill: 70A.535.025, 70A.15.3150, 70A.15.3160
Substitute Bill: 70A.535.025, 70A.15.3150, 70A.15.3160, 70A.535.130
Second Substitute: 70A.535.025, 70A.15.3150, 70A.15.3160, 70A.535.130
Bill as Passed Legislature: 70A.535.025, 70A.535.060, 70A.15.3150, 70A.15.3160, 70A.535.130