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 established criteria for emissions intensity and trade exposure. By July 1, 2022, the department is required to adopt objective criteria for identifying eligible facilities and outline the process for calculating annual allowance allocations based on carbon intensity and production levels. The bill also sets benchmarks for emissions reductions from 2027 to 2034 and mandates recommendations to the legislature by December 1, 2026, regarding future allowance schedules from 2035 to 2050.

Furthermore, the legislation introduces new reporting and planning requirements for greenhouse gas emission reductions at these facilities. Facility owners or operators must provide detailed information about their emissions and submit a reduction plan every four years. To qualify for no-cost allowances after January 1, 2027, they must comply with these reporting requirements, including submitting verified emissions data and progress documentation on energy efficiency. The bill includes confidentiality provisions to protect sensitive information, ensuring proprietary manufacturing processes remain secure. Overall, the legislation aims to balance environmental goals with the economic viability of affected industries while considering the impacts on overburdened communities and tribal lands.

Statutes affected:
Original bill: 70A.65.110