Initiative Measure No. 2117

Initiative Measure No. 2117

Initiative Measure No. 2117 concerns carbon tax credit trading.

This measure would prohibit state agencies from imposing any type of carbon tax credit trading, and repeal legislation establishing a cap and invest program to reduce greenhouse gas emissions. This measure would decrease funding for investments in transportation, clean air, renewable energy, conservation, and emissions-reduction.

Should this measure be enacted into law?


Explanatory Statement … … . . 18

Fiscal Impact Statement … … . 19

Arguments For and Against … … 31


The Secretary of State is not responsible for the content of statements or arguments (WAC 434-381-180).

Explanatory Statement

Written by the Office of the Attorney General

The Law as It Presently Exists

In 2021, the Washington Legislature enacted the Climate Commitment Act, which directed the Department of Ecology to design and implement a cap-and-invest program to reduce statewide greenhouse gas emissions. The program works by setting an emissions limit, or cap, and then lowering the cap over time to help ensure Washington meets the greenhouse gas reduction commitments previously set elsewhere in state law. Under the Climate Commitment Act, large emitters of greenhouse gas pollution subject to the program must either reduce their carbon emissions or pay for “allowances” to cover their emissions.

The cap-and-invest program applies to certain large emitters of greenhouse gas pollution, including large facilities, fuel suppliers, natural gas and electric utilities, waste-to-energy facilities (starting in 2027), and railroads (starting in 2031). Generally, entities with annual emissions below 25,000 metric tons of carbon dioxide equivalent are not required to obtain allowances to cover their emissions. Carbon dioxide equivalent is a measure used to compare the emissions from various greenhouse gases based on their global warming potential. Additionally, the emissions from certain facilities and certain types of fuel are not subject to the law. These include emissions from fuels used for agriculture or the transportation of agricultural products, aviation fuels, marine fuels combusted outside of Washington, and fuels exported out of Washington. The law also exempts emissions from national security facilities and certain municipal solid waste landfills.

Large emitters of greenhouse gas pollution covered by the program must obtain allowances equal to their covered emissions. Allowances are available through auctions administered by the Department of Ecology. The price of allowances sold at auctions fluctuates depending on market demand. Allowances can also be bought or sold through secondary markets at any time based on market prices. A portion of each polluter’s compliance obligation may also be met using offset credits, which are also bought and sold on a secondary market. An offset credit is purchased from developers of projects that the Department of Ecology has verified will result in permanent greenhouse gas reductions. Three types of polluters are issued free allowances that can be used to cover some or all of their emissions: “emissions-intensive, trade exposed” industries, natural gas utilities, and electric utilities.

All polluters covered by the program must report their greenhouse gas emissions and submit their allowances or other compliance instruments to the Department of Ecology according to a specific schedule. Failure to submit the required number of allowances by the applicable deadline results in an automatic penalty requiring the polluter to submit four allowances for each missing one. Failure to comply with other requirements of the cap-and-invest program is subject to fines of up to $50,000 per violation, per day.

Proceeds from the allowance auctions are appropriated by the Legislature and must be invested in climate projects throughout the state, including projects to increase climate resiliency, fund alternative-transportation grant programs, and help Washington transition to a low-carbon economy. State agencies that receive auction proceeds must conduct environmental justice assessments when allocating those funds, consistent with requirements set elsewhere in state law. At least 35% of auction proceeds are required to be used for projects that provide a direct benefit to people in communities disproportionately impacted by environmental harms. Additionally, at least 10% of auction proceeds must be used for projects with Tribal support. The Department of Ecology is required to provide an annual report to the Legislature summarizing how the auction proceeds have been used and whether each project produced verifiable emissions reductions. In 2023, cap-and-invest auctions raised $1.8 billion.

In addition to establishing the cap-and-invest program to reduce greenhouse gas emissions, the Climate Commitment Act also establishes a program for the Department of Ecology to reduce emissions of certain air pollutants (particulate matter, ozone, nitrogen dioxide, carbon monoxide, lead, and sulfur dioxide) in communities that the Department of Ecology has determined are overburdened and highly impacted by air pollution. This part of the Act requires the Department of Ecology to collect data needed to determine which sources contribute the most to air pollution in these communities. The Climate Commitment Act then requires the Department of Ecology to work with local air agencies to analyze this data and use it to develop and enforce stricter air quality standards where appropriate.

The Effect of the Proposed Measure if Approved

If approved, Initiative Measure No. 2117 would repeal the Climate Commitment Act, and bar state agencies from implementing carbon tax credit trading programs. Repealing the Climate Commitment Act would eliminate the climate and air quality programs described above as well as the funding source for investments in climate projects throughout the state.

The Climate Commitment Act carbon allowance auctions began in February 2023 and have generated $2.15 billion in revenue between then and the auction of June 5, 2024. Under the initiative, the last auction would take place on September 4, 2024. The three remaining auctions scheduled in state fiscal year 2025 would be canceled.

Fiscal Impact Statement

Written by the Office of Financial Management
For more information visit www.ofm.wa.gov/ballot

Summary

If approved by voters, Initiative 2117 will reduce state revenue from carbon allowance auctions by $3.8 billion and reduce state expenditures by $1.7 billion between the effective date of the initiative and June 30, 2029. This would reduce or eliminate funding for numerous programs and projects, including for:

Local government fiscal impacts are indeterminate.

General assumptions

State revenue impact

Summary

Initiative 2117 would repeal the law that requires the Department of Ecology (ECY) to hold carbon allowance auctions, called the Climate Commitment Act; therefore, the state would no longer collect revenue from those auctions. The Climate Commitment Act also established a secondary market for private parties to trade allowances and offset credits; therefore, the state would no longer collect revenue from the business and occupation (B&O) tax assessed on certain secondary market transactions.

The projected revenue loss would be $758.1 million in state fiscal year 2025. Three of the four annual carbon allowance auctions would not take place and allowance sales generating B&O taxes would end.

The initiative eliminates five accounts created under the Climate Commitment Act. If the initiative is approved, the remaining funds in those five accounts will be transferred to two new accounts:

  1. Transportation Carbon Emissions Reduction Account
  2. Consolidated Climate Account (ESHB 2134, Section 614, Chapter 310, Laws of 2024 and ESSB 5950, Section 907, Chapter 376, Laws of 2024).

An estimated $1 million to $300 million would be transferred into the Transportation Carbon Emissions Reduction Account, and $700 million to $900 million would be transferred into the Consolidated Climate Account. These amounts would be available to spend.

Funding Transfers

Other Revenue Impacts

State Expenditure Impact

Summary

Carbon Emissions Reduction Account

Climate Investment Account

Climate Commitment Account

Natural Climate Solutions Account

Air Quality and Health Disparities Investment Account

Projected spending impact to Washington State:

(See Table 2 on page 27.)

Carbon Emissions Reduction Account

Impact on the Carbon Emissions Reduction Account in the current biennium:

(See Table 3 on page 28.)

Significant activities that would be eliminated in SFY 2025 under the initiative:

Funding Allocations

Future Impacts from SFY 2026–SFY 2029

WSDOT would lose anticipated future funding and spending authority for ongoing programs of approximately $2.8 million each biennium, including:

Additionally, money would not be available for future transportation projects. The 2024 supplemental budget transportation spending plan, approved by the Legislature and used to develop future budgets, plans on spending $1 billion for various projects. These projects include:

Climate Active Transportation Account and Climate Transit Programs Account

Impact on the Climate Active Transportation and Climate Transit Programs Accounts in the current biennium:

(See Table 4 on page 28.)

Significant Activities that would be Eliminated in SFY 2025 under the Initiative:

None

Future Impacts from SFY 2026–SFY 2029:

For the purposes of this fiscal impact statement, it is assumed future spending from the accounts will end when the remaining fund balances are exhausted. It’s unknown what funding may be available to spend beyond June 30, 2025.

Climate Investment Account

Impact on the Climate Investment Account in the current biennium:

(See Table 5 on page 28.)

Significant activities that would be eliminated under the initiative:

Activities that would cease in SFY 2025 under the initiative:

Impact on the Climate Commitment Account in the current biennium:

(See Table 6 on page 29.)

Significant activities in SFY 2025 that would be eliminated under the initiative:

Future impacts from SFY 2026–SFY 2029:

The ECY and other agencies would lose anticipated future spending authority for ongoing programs of approximately $35 million each biennium to administer the Climate Commitment Act. ECY would lose funding no longer required for administration of the cap-and-invest program. ECY would lose funding to expand the state’s air quality monitoring network and improve air quality standards in overburdened communities highly impacted by air pollution.

The ECY would also lose $31.5 million per biennium for grants to Tribes to increase capacity to engage and work on climate-related projects and for carbon offset project development and $3.8 million to make improvements to Washington’s inventory of greenhouse gas emissions.

Natural Climate Solutions Account

Impact on the Natural Climate Solutions Account in the current biennium:

(See Table 7 on page 30.)

Significant activities in SFY 2025 that would be eliminated under the initiative:

Future Impacts from SFY 2026–SFY 2029:

Sixteen state agencies would lose anticipated future spending authority for ongoing programs of approximately $200 million in state fiscal years 2026–2027 and $130 million in state fiscal years 2028–2029 for multiple activities including clean energy development, environmental justice work and climate adaptation planning.

Future impacts from SFY 2026–SFY 2029:

Nine state agencies would lose anticipated future spending authority for ongoing programs of approximately $50 million each biennium to continue work on programs and projects which increase the resilience of the state’s waters, forests and other vital ecosystems to the impacts of climate change; conserve forestlands; and increase natural carbon-pollution reduction capacity.

Air Quality and Health Disparities Investment Account

Impact on the Air Quality and Health Disparities Investment Account in the current biennium:

(See Table 8 on page 30.)

Activities in SFY 2025 that would be eliminated under the initiative:

Future impacts from SFY 2026–SFY 2029:

The account would be eliminated along with $40 million in anticipated future funding for ongoing programs administered by ECY to improve air quality and reduce health disparities in overburdened communities.

Other state agency spending impacts

Compliance costs:

The University of Washington (UW) and Washington State University (WSU) are covered entities under the Climate Commitment Act and are required to purchase or acquire compliance instruments (carbon-emission allowances and offset credits) to account for their covered greenhouse gas emissions. Under the initiative, this requirement would be eliminated. The UW would save an estimated $3.4 million in state fiscal year 2025 and $3.8 million each year in state fiscal years 2026–2029. WSU would save $3.3 million in state fiscal year 2025 and $3.7 million each year in state fiscal years 2026–2029.

Both universities receive state funding to cover a portion of this obligation cost. The remainder must be paid for by other funding sources. The UW currently receives $1,733,000 in State General Fund each state fiscal year to pay for a portion of their obligation. WSU currently receives $1,718,000 in State General Fund each state fiscal year to pay for a portion of their obligation. The 2024 supplemental operating budget provided an additional $4.3 million in state fiscal year 2024 and $2.6 million in state fiscal year 2025 from the State General Fund for WSU to pay for their obligation.

Federal funding:

Several state agencies and local governments use Climate Commitment Act funding as a required match to receive federal funding, and this match funding is often required before applying for federal grants. Under the initiative, these federal grants would be at risk if the Climate Commitment Act funds are not replaced. It is unknown exactly how much federal funding the state or local governments would receive that would be matched with Climate Commitment Act funding in the future. Therefore, the potential impact of the initiative on the amount of federal funds the state and local governments would receive is indeterminate. Some examples are included.

Currently, Transit Formula and Special Needs grant local projects use Climate Commitment Act funding for federal match. The federal amount that would not be funded each fiscal year is approximately $12 million. For rural mobility projects, the amount is approximately $8 million each fiscal year.

The Cascadia High-Speed Rail Program was accepted under the Corridor Identification and Development (CID) Program, which is a long-term federal grant pipeline. Federal funding for the next steps for the High-Speed Rail Program requires state matching funds. The program is currently negotiating with the federal railroad administration for a CID grant award amount. These negotiations assume availability of $25 million of Climate Commitment Act funding in the current biennium for state match – and ability to extend spending, if needed – to align with the reimbursement cycle for the federal grant. Under the initiative, WSDOT would be unable to accept $391.7 million of federal funding in state fiscal years 2025–2029 through the CID Program without alternative funding.

Rulemaking:

Under the initiative, ECY would conduct rulemaking from January 2025 through December 2027 to repeal Climate Commitment Act rules and to amend rules regarding greenhouse gas emission reporting. Estimated costs are $1.2 million from the State General Fund for staff to conduct this rulemaking and for support from the Office of the Attorney General.

Lease costs:

WSU has leased a building in Richland, Washington to house the Institute for Northwest Energy Futures and is paying for this lease with funding from the Climate Commitment Act. WSU is contractually obligated for future expenses through December 1, 2026. Under the initiative, this funding would be eliminated, and WSU would need to find other funds to pay these expenses. The cost is estimated at $810,000 in state fiscal year 2026 and $809,000 in state fiscal year 2027 and would likely be paid for with the State General Fund.

Performance audit:

Under the initiative, the Joint Legislative Audit and Review Committee (JLARC) would not conduct a mandated performance audit of Climate Commitment Act implementation which is required by December 1, 2029. The estimated savings to JLARC is $200,000 from the State General Fund in state fiscal year 2029.

Local government impacts

Grant and award programs

Passage of the initiative would reduce Climate Commitment Act funding provided by state agencies to local governments and K–12 public schools. Currently, cities, counties, K–12 schools, and other local entities can receive grants, loan, or contract funding from approximately 130 programs across dozens of state agencies. Under the initiative, all these programs would lose funding past June 30, 2025. Between December 5, 2024, and June 30, 2025, approximately 50 programs and $415.7 million would be eliminated. It is unknown which local governments would apply for grants or loans and be awarded funding, or the amounts of such awards that would be eliminated under the initiative.

Significant programs in SFY 2025 that would be eliminated under the initiative:

Impacts on publicly owned electricity utilities

Currently, 53 cities, counties, and other publicly owned entities that provide electricity to local ratepayers participate in the cap-and-invest program that would be eliminated under the initiative. Currently, these utilities receive free allowances to cover the total cost burden of compliance, including administrative costs and the costs of acquiring allowances or offset credits equal to the carbon emissions from the power plants that serve their ratepayers. These utilities can use the free allowances to meet their cap-and-invest compliance obligations. Alternatively, they can use some of the free allowance value to implement programs that benefit ratepayers. Under the initiative, through 2030, the total value of the free allowances that these entities would not receive is forecasted at $1.3 billion.

Impacts on publicly owned natural gas utilities

Two cities in Washington provide natural gas to local ratepayers. They participate in the Climate Commitment Act’s cap-and-invest program due to the level of their carbon emissions: the City of Enumclaw and the City of Ellensburg. The initiative repeals the cap-and-invest program, and these two cities would no longer be required to acquire allowances or offset credits equal to their carbon emission levels. Under the initiative, through 2030, the total value of the free allowances that these cities would not receive is forecasted at $13.4 million.

Table 1 – Projected revenue impact to Washington State

AccountSFY 2025SFY 2026SFY 2027SFY 2028SFY 2029
Carbon Emissions Reduction Account($672,271,000)($71,823,000)($71,823,000)($71,823,000)($71,823,000)
Climate Transit Programs Account$0($201,106,000)($201,106,000)($201,106,000)($201,106,000)
Climate Active Transportation Account$0($86,188,000)($86,188,000)($86,188,000)($86,188,000)
Climate Investment Account, portions of which are distributed to the Climate Commitment Account and Natural Climate Solutions Account($79,285,000)($472,765,000)($422,789,000)($402,426,000)($301,837,000)
Air Quality and Health Disparities Improvement Account($2,500,000)($10,000,000)($10,000,000)($10,000,000)($10,000,000)
General Fund-State($3,400,000)($7,100,000)($7,400,000)($7,800,000)($8,100,000)
Workforce Education Investment Account($600,000)($1,200,000)($1,200,000)($1,300,000)($1,400,000)
Total($758,056,000)($850,182,000)($800,566,000)($780,643,000)($680,514,000)

Table 2 – Projected spending impact to Washington State:

AccountSFY 2025SFY 2026SFY 2027SFY 2028SFY 2029
Carbon Emissions Reduction Account($435,594,125)($1,387,000)($1,387,000)($1,387,000)($1,387,000)
Transportation Carbon Emissions Reduction Account$230,354,125$0$0$0$0
Climate Active Transportation Account$0($9,533,500)($9,533,500)($9,533,500)($9,533,500)
Climate Transit Programs Account$0($179,850,000)($179,850,000)($179,850,000)($179,850,000)
Climate Investment Account($35,256,884)($35,443,000)($35,443,000)($35,094,000)($35,094,000)
Climate Commitment Account($896,196,884)($102,620,000)($97,523,000)($66,026,000)($64,389,000)
Natural Climate Solutions Account($282,251,136)($25,392,000)($27,953,000)($22,956,000)($25,853,000)
Air Quality and Health Disparities Investment Account($19,333,611)$0$0$0$0
Consolidated Climate Account$653,797,443$0$0$0$0
General Fund-State($6,349,000)($6,152,000)($6,364,000)($7,500,000)($7,700,000)
General Fund-Federal($45,000,000)($70,000,000)($70,000,000)($70,000,000)($236,700,000)
Total($835,829,954)($430,377,000)($428,053,500)($392,346,500)($590,506,500)

Table 3 – Impact on the Carbon Emissions Reduction Account in the current biennium:

AgencySpending authority eliminatedSpending authority transferred to the Transportation Carbon Emissions Reduction Account
Department of Commerce($5,000,000)$0
Department of Ecology($4,000,000)$0
Department of Enterprise Services($13,500,000)$0
Department of Natural Resources$0$671,724
Joint Transportation Committee($477,000)$2,243,091
Washington State Department of Transportation($182,263,000)$227,439,310
Washington State Parks & Recreation Commission$0$0
Total($205,240,000)$230,354,125

Table 4 – Impact on the Climate Active Transportation and Climate Transit Programs Accounts in the current biennium:

AgencySpending authority eliminatedSpending authority retained
Transportation Improvement Board$0$7,067,000
Washington State Department of Transportation$0$322,984,552
Total$0$330,051,552

Table 5 – Impact on the Climate Investment Account in the current biennium:

AgencySpending authority eliminatedSpending authority transferred to the Consolidated Climate Account
Department of Ecology($12,081,799)$21,058,099
Department of Health$0$489,012
Department of Licensing$0$0
Environmental and Land Use Hearings Office$0$838,354
Office of Financial Management($2,370)$565,450
Recreation and Conservation Office$0$116,800
Washington State Conservation Commission($105,000)$0
Total($12,189,169)$23,067,715

Table 6 – Impact on the Climate Commitment Account in the current biennium:

AgencySpending authority eliminatedSpending authority transferred to the Consolidated Climate Account
Central Washington University($16,973,000)$1,300,473
Columbia River Gorge Commission$0$70,250
Department of Architectural and Historic Preservation$0$506,755
Department of Children, Youth and Families$0$3,199,000
Department of Commerce($269,919,794)$303,908,217
Department of Corrections($600,000)$1,600,000
Department of Ecology($9,792,103)$17,917,345
Department of Enterprise Services($1,617,575)$0
Department of Health$120,000$79,236,333
Department of Labor & Industries$0$3,463,669
Department of Natural Resources($862,000)$5,423,409
Department of Revenue$0$281,500
Department of Social and Health Services($9,958,915)$0
Department of Veteran’s Affairs$0$200,000
Energy Facility Site Evaluation Council($68,000)$4,561,612
Employment Security Department$0$329,837
Eastern Washington University($9,998,000)$50,000
Governor’s Office of Indian Affairs$0$495,218
Office of Financial Management($875,000)$3,240,284
Office of the Superintendent of Public Instruction($30,000,000)$7,525,000
The Evergreen State College$0$0
University of Washington($39,053,000)$9,055,869
Washington State Board of Community & Technical Colleges($2,475,000)$5,781,000
Washington State Conservation Commission($3,048,483)$22,400,000
Washington State Department of Agriculture($3,407,000)$2,553,592
Washington State Department of Fish & Wildlife$0$1,056,113
Washington State Parks & Recreation Commission($950,000)$1,462,443
Washington State University($13,000,000)$352,823
Western Washington University($7,000,000)$0
Workforce Training Board$0$508,273
Total($419,717,870)$476,479,014

Table 7 – Impact on the Natural Climate Solutions Account in the current biennium:

AgencySpending authority eliminatedSpending authority transferred to the Consolidated Climate Account
Department of Commerce($7,975,000)$2,600,546
Department of Ecology($2,079,963)$21,451,072
Department of Enterprise Services$0$0
Department of Health$0$22,828
Department of Natural Resources($54,594,358)$26,464,652
Military Department$0$84,022
Recreation and Conservation Office($72,006,000)$57,279,700
University of Washington$0$486,602
Washington State Conservation Commission($5,603,713)$24,331,293
Washington State Department of Agriculture($5,000,000)$114,884
Washington State Department of Fish and Wildlife$0$1,145,241
Washington State Parks & Recreation Commission($75,000)$936,263
Total($147,334,034)$134,917,102

Table 8 – Impact on the Air Quality and Health Disparities Investment Account in the current biennium:

AgencySpending authority eliminatedSpending authority transferred to the Consolidated Climate Account
Department of Ecology$0$19,333,611
Total$0$19,333,611

Argument for

Vote “Yes” on I-2117 to repeal Washington’s expensive, unfair, and wasteful CO2 tax
The CO2 tax increases the cost of gasoline and energy and drives up the price of everything we buy. A hidden tax that hurts low-income people most while providing large handouts to special interests. That’s why a bipartisan group of climate scientists, farmers, small business owners, and environmental justice advocates is voting “Yes” on I-2117 to cut energy prices and protect jobs.

The CO2 tax is built on broken promises

Politicians promised the CO2 tax would make gasoline prices go up by only “pennies.” Instead, the CO2 tax added nearly 40 cents per gallon at the pump, making Washington’s fuel some of the most expensive in the nation. Plus, the tax will double in just a few years.

Energy inflation hits low-income families hardest

While working families struggle with higher prices, politicians offer token, election-year “credits” to hide the real costs of the tax. The state even made it illegal for utilities to tell people the CO2 tax is hiking up their bills. This tax is unfair and kills small businesses and good jobs.

The CO2 tax goes mainly to government and special interests—not fighting climate change

The CO2 tax gives billions to government bureaucrats, with little left for tackling pollution and climate change. Lots of cash for special interests, but almost nothing to stop wildfires or improve air quality. Vote “Yes” to support environmental action that prioritizes the planet not politics.

Argument against

I-2117 is a purposely misleading, poorly written initiative that won’t do a thing to guarantee lower costs for working families. It will endanger our health and safety and would devastate our transportation system.
I-2117 is a threat to our air, land and water - putting our health at risk.
I-2117 would jeopardize vital protections for our waterways, including rivers, lakes and streams. It would mean more toxic pollution in the air we breathe, resulting in more adults and kids suffering with asthma and illness. It would gut programs that protect our communities from wildfires and eliminate efforts to support salmon recovery and fish habitat.
I-2117 threatens the safe, reliable functioning of our entire transportation system.
I-2117 would cut one-third of funding for our state’s already stretched transportation plan, making traffic congestion worse and commutes even longer. These drastic cuts would impact every corner of our state, putting major road and bridge projects addressing congestion, safety and freight mobility in danger of severe delays or outright cancellation.
I-2117 reduces funding to restore a ferry system already in crisis and would drastically slash transit service.

An unprecedented coalition opposes I-2117.

The devastating harm I-2117 would cause has produced a uniquely broad and diverse coalition united in opposition. Over 350 organizations – including firefighters, small businesses, leading companies, doctors, nurses, labor unions and environmental leaders – and Tribal Nations have joined together to fiercely oppose I-2117. No to more pollution. No to more traffic congestion. No on I-2117. It’s a bad deal for Washington.

Rebuttal of argument against

Advocates of the CO2 tax – the largest energy tax in state history – claim it doesn’t increase energy costs. They know this is false. We all felt the harm from soaring gasoline prices. Repealing the tax lowers prices. Tax supporters also know the law prohibits the taxes from maintaining roads and bridges. Ending the tax will not hurt transportation. Don’t be fooled by dishonest scare tactics. Vote “Yes” to pay less and protect low-income Washingtonians.

Rebuttal of argument for

The people behind I-2117 make many misleading claims. If its supporters wanted to lower gas prices, they should have pushed an initiative to cut the gas tax. There is nothing in I-2117 that guarantees lower gas prices – but it will mean more pollution in our air and waterways, and more asthma and illness. It will devastate our transportation system, increasing traffic congestion and commute times, and costing jobs. Don’t be fooled. Vote no on 2117.

Written by

Nichole Banegas, Environmental Justice Leader; Cliff Mass, Professor of Atmospheric Sciences; Ben Tindall, Executive Director of Save Family Farming; Sheri Call, President & CEO, Washington Trucking Associations; Todd Myers, environmental author, former Puget Sound Salmon Recovery Councilmember; Matt Boehnke, State Senator, 8th Legislative District
Contact: No information submitted

Written by

Mark Riker, Executive Secretary, Washington Building & Construction Trade Council; Leonard Forsman, Chairman Suquamish Tribe, Affiliated Tribes of Northwest Indians; Maia Bellon, The Nature Conservancy in Washington, Board Chair, Tumwater; Richard de Sam Lazaro, Transportation Choice Coalition, Board President; Lindsey Kirsch, Pediatric Registered Nurse; Jason Wilkins, State Council of Firefighters, Spokane, Wildland Taskforce Leader
Contact: (206) 331-3969; info@no2117.com; no2117.com

Complete Text

AN ACT Relating to prohibiting all state agencies, counties, and cities from implementing any type of carbon tax credit trading, also known as “cap and trade” or “cap and tax” scheme; adding a new section to chapter 70A.65 RCW; creating a new section; and repealing RCW 43.21C.520, 70A.15.1100, 70A.45.110, 70A.65.005, 70A.65.010, 70A.65.020, 70A.65.030, 70A.65.040, 70A.65.050, 70A.65.060, 70A.65.070, 70A.65.080, 70A.65.090, 70A.65.100, 70A.65.110, 70A.65.120, 70A.65.130, 70A.65.140, 70A.65.150, 70A.65.160, 70A.65.170, 70A.65.180, 70A.65.200, 70A.65.210, 70A.65.220, 70A.65.230, 70A.65.240, 70A.65.250, 70A.65.260, 70A.65.270, 70A.65.280, 70A.65.290, 70A.65.300, 70A.65.305, 70A.65.310, 70A.65.900, and 70A.65.901.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.

A new section is added to chapter 70A.65 RCW to read as follows:

All state agencies are prohibited from implementing any type of carbon tax credit trading, also known as “cap and trade” or “cap and tax” scheme, including the climate commitment act previously codified as chapter 70A.65 RCW. This prohibition applies whether the resulting increased costs are imposed on fuel recipients or fuel suppliers.

NEW SECTION. Sec. 2.

The following acts or parts of acts are each repealed:

  1. RCW 43.21C.520 (Review of greenhouse gas emissions from a new or expanded facility) and 2021 c 316 s 34;
  2. RCW 70A.15.1100 (Issuance of enforceable order—Overburdened communities) and 2021 c 316 s 35;
  3. RCW 70A.45.110 (Siting of certain facilities) and 2021 c 316 s 36;
  4. RCW 70A.65.005 (Findings—Intent) and 2021 c 316 s 1;
  5. RCW 70A.65.010 (Definitions) and 2022 c 181 s 10 & 2021 c 316 s 2;
  6. RCW 70A.65.020 (Environmental justice review) and 2022 c 181 s 5.2 & 2021 c 316 s 3;
  7. RCW 70A.65.030 (Environmental justice assessment) and 2023 c 475 s 1902, 2023 c 475 s 936, 2022 c 182 s 104, 2022 c 181 s 13, & 2021 c 316 s 4;
  8. RCW 70A.65.040 (Environmental justice council—Duties) and 2022 c 182 s 105, 2022 c 181 s 14, & 2021 c 316 s 5;
  9. RCW 70A.65.050 (Governance structure) and 2021 c 316 s 7;
  10. RCW 70A.65.060 (Cap on greenhouse gas emissions) and 2021 c 316 s 8;
  11. RCW 70A.65.070 (Annual allowance budget and timelines) and 2022 c 181 s 1 & 2021 c 316 s 9;
  12. RCW 70A.65.080 (Program coverage) and 2022 c 179 s 14 & 2021 c 316 s 10;
  13. RCW 70A.65.090 (Requirements) and 2021 c 316 s 11;
  14. RCW 70A.65.100 (Auctions of allowances) and 2023 c 475 s 937, 2022 c 181 s 3, & 2021 c 316 s 12;
  15. RCW 70A.65.110 (Allocation of allowances to emissions-intensive, trade-exposed industries) and 2021 c 316 s 13;
  16. RCW 70A.65.120 (Allocation of allowances to electric utilities) and 2021 c 316 s 14;
  17. RCW 70A.65.130 (Allocation of allowances to natural gas utilities) and 2021 c 316 s 15;
  18. RCW 70A.65.140 (Emissions containment reserve withholding) and 2022 c 181 s 11 & 2021 c 316 s 16;
  19. RCW 70A.65.150 (Allowance price containment) and 2022 c 181 s 7 & 2021 c 316 s 17;
  20. RCW 70A.65.160 (Price ceiling) and 2022 c 181 s 7 & 2021 c 316 s 18;
  21. RCW 70A.65.170 (Offsets) and 2022 c 181 s 12 & 2021 c 316 s 19;
  22. RCW 70A.65.180 (Assistance program for offsets on tribal lands) and 2021 c 316 s 20;
  23. RCW 70A.65.200 (Enforcement—Penalty) and 2022 c 181 s 4 & 2021 c 316 s 23;
  24. RCW 70A.65.210 (Linkage with other jurisdictions) and 2021 c 316 s 24;
  25. RCW 70A.65.220 (Adoption of rules) and 2021 c 316 s 25;
  26. RCW 70A.65.230 (Investments—Legislative intent—Evaluation) and 2022 c 182 s 426, 2022 c 181 s 8, & 2021 c 316 s 26;
  27. RCW 70A.65.240 (Carbon emissions reduction account) and 2022 c 182 s 10 & 2021 c 316 s 27;
  28. RCW 70A.65.250 (Climate investment account) and 2023 c 475 s 938, 2023 c 435 s 12, 2022 c 253 s 2, & 2021 c 316 s 28;
  29. RCW 70A.65.260 (Climate commitment account) and 2023 c 475 s 939, 2022 c 179 s 17, & 2021 c 316 s 29;
  30. RCW 70A.65.270 (Natural climate solutions account) and 2021 c 316 s 30;
  31. RCW 70A.65.280 (Air quality and health disparities improvement account) and 2021 c 316 s 31;
  32. RCW 70A.65.290 (Joint legislative audit and review committee—Program implementation analysis. (Expires June 30, 2030.)) and 2021 c 316 s 32;
  33. RCW 70A.65.300 (Distributions of moneys—Annual report) and 2021 c 316 s 46;
  34. RCW 70A.65.305 (Tribal consultation) and 2022 c 253 s 1;
  35. RCW 70A.65.310 (Covered or opt-in entity compliance obligation) and 2022 c 181 s 2;
  36. RCW 70A.65.900 (Short title—2021 c 316) and 2021 c 316 s 37;
  37. RCW 70A.65.901 (Suspension of certain sections and rules) and 2021 c 316 s 39.

NEW SECTION. Sec. 3.

The provisions of this act are to be liberally construed to effectuate the policies, purposes, and intent of this act.

NEW SECTION. Sec. 4.

If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

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