The bill amends the Climate Commitment Act to enhance auction price containment mechanisms and clarify the Department of Ecology's authority regarding rule amendments for linking with other jurisdictions. It introduces new requirements for the Department to conduct market analysis and economic modeling related to compliance instrument markets, including forecasts of prices and supply and demand trends. Additionally, the Department is mandated to post the results of this economic modeling on its website by specified deadlines to ensure transparency. The bill also modifies existing regulations on greenhouse gas emissions reporting, establishing new requirements to minimize reporting burdens while ensuring compliance with emissions data collection.

Furthermore, the bill creates an allowance price containment reserve and mandates that a minimum of two percent of total allowances be placed in this reserve from 2023 to 2026, with a revised range of two to five percent for subsequent years. It sets annual allowance budgets to achieve specific emissions reduction targets by 2030, 2040, and 2050, and introduces a price ceiling for compliance instruments for 2026 and 2027, initially set at $80. Key insertions include provisions for the Department to amend allowance allocations and synchronize compliance periods with linked jurisdictions, while emphasizing the program's implementability. The bill also stipulates that if specific funding is not provided by June 30, 2025, the act will become null and void, aiming to promote a sustainable economy aligned with state emissions reduction limits.

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
Bill as Passed Legislature: 70A.15.2200, 70A.65.010, 70A.65.070, 70A.65.110, 70A.65.160
Session Law: 70A.15.2200, 70A.65.010, 70A.65.070, 70A.65.110, 70A.65.160