The bill amends the Climate Commitment Act to improve auction price containment mechanisms and clarify the Department of Ecology's authority regarding rule amendments for linking with other jurisdictions. It introduces 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. The Department is also mandated to publish these modeling results periodically, with set deadlines for initial and updated reports. Additionally, the bill modifies greenhouse gas emissions reporting regulations, emphasizing the need to minimize reporting burdens and establishing specific requirements for emissions reporting from various sources, including electric power entities.

Furthermore, the bill sets forth a framework for auctioning allowances from a price containment reserve to effectively manage compliance costs, including establishing a reserve auction floor price and allocating a percentage of allowances to the price containment reserve for future years. It mandates the Department to begin the program by January 1, 2023, and to adopt annual allowance budgets for the first compliance period (2023-2026) by October 1, 2022. The bill introduces a price ceiling for compliance instruments for 2026 and 2027, set at $80, with conditions for adjustment based on linkage agreements. It also creates a price ceiling unit emission reduction investment account for funding emissions reduction efforts and includes provisions for program evaluation and adjustments to allowance budgets. If specific funding is not provided by June 30, 2025, the act will become null and void, while ensuring that remaining provisions remain enforceable if any part is deemed invalid.

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