The bill amends the Climate Commitment Act to enhance auction price containment mechanisms and establish a framework for market analysis and linkage with other jurisdictions. It introduces new sections that require the Department of Ecology to provide detailed analysis and forecasts of compliance instrument markets, including price trends and market activities. Additionally, the department is mandated to conduct periodic economic modeling to assess the program's design features and to publish the results on its website by specified deadlines. The bill also sets forth requirements for the establishment of allowance price containment reserves and outlines the process for reserve auctions to mitigate compliance costs for covered entities.

Key amendments include the adjustment of the auction price ceiling to $80 for the years 2026 and 2027, with provisions for annual increases tied to the reserve auction floor price. The bill specifies that a minimum of two percent and a maximum of five percent of total allowances must be placed in the allowance price containment reserve from 2027 to 2040. Furthermore, it emphasizes the importance of synchronizing compliance periods and price ceilings with linked jurisdictions, ensuring that the program remains effective in achieving the state's greenhouse gas emission reduction targets. The act will become null and void if specific funding is not provided by June 30, 2025.

Statutes affected:
Original Bill: 70A.65.150, 70A.65.070, 70A.65.110
Substitute Bill: 70A.65.150, 70A.65.070, 70A.65.110
Second Substitute: 70A.65.150, 70A.65.070, 70A.65.110