The bill amends RCW 70A.65.110 to create a framework for allocating no-cost allowances to emissions-intensive and trade-exposed facilities under Washington's climate commitment act. Facilities classified under specific North American Industry Classification System (NAICS) codes, such as metals, paper, aerospace, and chemical manufacturing, will receive these allowances at no cost if they meet defined emissions intensity and trade exposure criteria. The Department of Ecology is tasked with adopting objective criteria for identifying eligible facilities by July 1, 2022, and will calculate annual allocations based on the facility's carbon intensity or mass-based baseline. The bill also sets benchmarks for emissions reductions from 2027 to 2034 and requires the Department to provide recommendations for future allowance schedules by December 1, 2026.

Additionally, the bill introduces new reporting and planning requirements for facility owners or operators to ensure compliance with emissions reduction goals. To qualify for no-cost allowances after January 1, 2027, facilities must adhere to these reporting requirements, which include submitting emissions data every two years and a comprehensive reduction plan every four years, verified by an independent third party. The legislation also includes confidentiality provisions to protect sensitive information related to proprietary manufacturing processes. Overall, the bill aims to incentivize early action on emissions reductions while considering the environmental and health impacts of facilities, particularly those affecting tribal lands.

Statutes affected:
Original bill: 70A.65.110