The Washington State Clean Energy Transformation Act (CETA), codified in Revised Code of Washington (RCW) 19.405, mandates a transition to a 100% clean electricity supply for Washington’s electric utilities by 2045. A key component of this transition involves the establishment of greenhouse gas (GHG) reduction targets. Specifically, CETA requires a 50% reduction in GHG emissions from 2019 levels by 2030, an 80% reduction by 2040, and a 100% reduction by 2045. The Act also addresses the role of out-of-state renewable energy purchases and the responsible retirement of fossil fuel-fired generation. Utilities are required to develop integrated resource plans that demonstrate how they will meet these targets, including provisions for energy efficiency, demand response, and renewable energy procurement. The concept of “clean electricity” as defined in the Act is crucial, encompassing renewable resources and other zero-emission sources. The Act also allows for the use of certain out-of-state electricity resources, provided they meet specific environmental attributes and are acquired through mechanisms that ensure they contribute to the overall clean energy transition and do not simply displace emissions elsewhere without a net benefit. The framework emphasizes a just transition, considering impacts on communities and workers.

The Washington State Department of Ecology, under the authority of the Washington State Clean Air Act, specifically RCW 70.235.020, is empowered to adopt rules and regulations to reduce greenhouse gas emissions. The Clean Energy Transformation Act (CETA), codified in RCW 19.405, mandates that Washington’s electricity be 100% clean energy by 2045, with interim goals. It also establishes a greenhouse gas (GHG) cap for the electricity sector, which is intended to decline over time. The GHG cap is not a static number; rather, it is a declining limit on emissions from electricity generation serving Washington consumers. Compliance with this cap is achieved through various mechanisms, including the purchase of clean energy credits, participation in a cap-and-invest program, or other approved methods that demonstrate emission reductions. The intent of CETA is to drive the transition to renewable energy sources and reduce the carbon intensity of the state’s electricity supply, thereby contributing to Washington’s overall climate goals. The concept of a declining emissions cap is a cornerstone of market-based environmental regulation, aiming to incentivize innovation and cost-effective emission reductions by setting a clear, predictable limit on pollution.

The Washington State Legislature enacted the Climate Commitment Act (CCA) in 2021, establishing a cap-and-invest program to reduce greenhouse gas emissions. This program sets a declining limit on emissions from covered sectors and requires entities to obtain allowances for their emissions. The act mandates that a significant portion of the revenue generated from the auction of these allowances be invested in projects that benefit communities disproportionately impacted by climate change and pollution, as well as in clean energy and climate resilience initiatives. Specifically, the CCA directs that at least 35% of the revenue be invested in projects that provide direct and meaningful benefits to these overburdened communities. Furthermore, the act mandates that at least 10% of the revenue be allocated to tribal governments for climate-related projects. The remaining revenue is to be invested in programs that support clean transportation, energy efficiency, and climate resilience. The goal is to achieve a 95% reduction in greenhouse gas emissions below 1990 levels by 2050. The CCA is a cornerstone of Washington’s strategy to address climate change, aligning with the state’s broader environmental justice goals and its commitment to a clean energy future. The program’s design aims to create a market-based incentive for emissions reductions while ensuring that the transition to a low-carbon economy is equitable.

The Washington State Legislature, through initiatives like the Climate Commitment Act (CCA), aims to reduce greenhouse gas emissions and foster a transition to a clean energy economy. The CCA establishes a cap-and-trade program, which is a market-based approach to emissions reduction. Under this program, covered entities must surrender allowances for their emissions. The Washington State Department of Ecology is responsible for implementing and overseeing the CCA. The program’s design includes provisions for setting declining caps on emissions, allocating allowances, and conducting auctions for allowances. Revenue generated from allowance auctions is directed towards investments in climate resilience, clean transportation, and other environmental justice initiatives, as outlined in RCW 70A.65.120. The question tests the understanding of how the CCA incentivizes emission reductions through the creation of a market for emission allowances and the allocation of auction revenue for specific climate-related purposes. The core mechanism is the cap-and-trade system, where scarcity of allowances drives up their price, encouraging entities to reduce emissions to avoid purchasing expensive allowances. The subsequent reinvestment of auction revenue further supports the transition to a low-carbon economy, aligning with the act’s overarching goals.

The question concerns the application of Washington’s Greenhouse Gas Emissions Performance Standard for electricity generation, as established by the Clean Air Act and related state regulations, specifically focusing on the state’s commitment to reducing emissions from in-state electricity sources. The core of the issue is determining the compliance pathway for a hypothetical utility operating in Washington that relies on electricity imported from out-of-state coal-fired power plants. Washington’s regulatory framework, particularly under RCW 70A.45.020, mandates that electricity sold in Washington must be generated from sources that meet specific greenhouse gas (GHG) intensity standards, or the utility must offset the emissions. For imported electricity, the state’s approach is to attribute the emissions from the generating facility to the utility importing the power if those emissions exceed the state’s defined standard. Utilities can achieve compliance through various means, including directly purchasing power from qualifying low-emission sources, entering into power purchase agreements with such sources, or acquiring and retiring Renewable Energy Credits (RECs) or equivalent carbon offsets that are demonstrably tied to emission reductions in the electricity sector. The key is that the emissions associated with the electricity consumed within Washington must be accounted for and managed to meet the state’s climate goals. Therefore, a utility importing electricity from a coal plant that exceeds the state’s GHG intensity standard must either ensure the imported power’s emissions are brought into compliance or procure equivalent emission reductions through other mechanisms recognized by Washington State.

Washington’s Clean Energy Transformation Act (CETA), codified in Revised Code of Washington (RCW) 19.405, mandates a transition to a 100% clean energy electricity supply by 2045. The Act establishes interim goals, including achieving 80% clean energy by 2030 and 100% greenhouse gas-neutral by 2030. Utilities are required to develop and submit clean energy implementation plans to the Utilities and Transportation Commission (UTC) detailing how they will meet these targets. These plans must address energy efficiency, renewable energy resources, grid modernization, and equitable access to clean energy benefits. The Act also includes provisions for customer engagement, workforce development, and addressing the impacts of the transition on vulnerable communities. The concept of a “just transition” is central, aiming to ensure that the shift to clean energy does not disproportionately harm workers or communities historically reliant on fossil fuel industries. The CETA allows for certain exemptions or modifications to the clean energy requirements under specific circumstances, such as ensuring reliability or affordability, but these must be justified and approved by the UTC. The Act’s implementation involves ongoing oversight by the UTC, which reviews utility plans, monitors progress, and can impose penalties for non-compliance. The focus is on a phased approach, encouraging innovation and market-based solutions while providing regulatory certainty for utilities and stakeholders.

The Washington State Legislature enacted the Climate Commitment Act (CCA) in 2021, establishing a cap-and-invest program for greenhouse gas emissions. This program sets declining limits on emissions from covered sectors and requires entities to obtain allowances for their emissions. The CCA mandates that a significant portion of the revenue generated from the auction of these allowances be invested in programs that benefit communities disproportionately impacted by climate change and pollution, as well as those that foster climate resilience and clean energy transitions. Specifically, the Act dedicates a substantial percentage of these proceeds to the Climate Commitment Account, which funds various initiatives. Key to understanding the distribution and utilization of these funds is the legislative intent to promote environmental justice and support a just transition for workers and communities affected by the shift away from fossil fuels. The allocation prioritizes projects that reduce emissions, enhance adaptation and resilience, and provide direct benefits to vulnerable populations, aligning with the state’s broader climate goals and equity considerations.

The Washington State Legislature, through the Climate Commitment Act (CCA), enacted comprehensive legislation to address greenhouse gas emissions. The CCA established a cap-and-invest program, which is a market-based approach to reduce emissions. Under this program, the state sets a declining limit, or “cap,” on the total amount of greenhouse gases that can be emitted by covered entities. These entities must obtain “allowances” for each ton of carbon dioxide equivalent they emit. Allowances can be purchased through auctions or traded on a secondary market. The revenue generated from the sale of these allowances is then reinvested in projects that further climate goals, such as clean energy, transportation electrification, and environmental justice initiatives. The program’s design inherently links emissions reduction with economic incentives, as entities that reduce their emissions below their allocated allowances can sell their surplus allowances, while those exceeding their cap must purchase additional allowances, thereby increasing their costs. This mechanism drives innovation and investment in low-carbon technologies and practices. The specific design of the cap-and-invest program, including the initial cap, the rate of decline, and the allocation of allowances, is crucial for its effectiveness in achieving Washington’s emissions reduction targets as mandated by state law.

The Washington State Legislature, through initiatives like the Climate Commitment Act (CCA), has established a cap-and-invest program. This program aims to reduce greenhouse gas emissions by setting declining caps on emissions for covered sectors and allowing entities to trade allowances. The revenue generated from the auction of these allowances is then reinvested in projects that further climate goals, promote environmental justice, and benefit communities disproportionately affected by pollution and climate change. Key to the CCA’s implementation is the establishment of an emissions baseline and the annual reduction of the emissions cap. The program is designed to achieve a specific percentage of statewide greenhouse gas emissions reductions by a target year, as mandated by state law. The revenue allocation process prioritizes investments in areas such as clean transportation, energy efficiency, and climate resilience, ensuring that the transition to a low-carbon economy is equitable. The effectiveness of the CCA is measured by its ability to drive down emissions within covered sectors while simultaneously fostering economic opportunities in green industries and supporting vulnerable populations. The core principle is to create a market-based incentive for emissions reduction that is predictable and ensures environmental integrity. The program’s structure includes provisions for stakeholder engagement and periodic review to adapt to evolving scientific understanding and policy needs.

The Washington State Clean Energy Transformation Act (CETA), codified in RCW 19.405, mandates a transition to a 100% clean electricity supply for all Washington customers by 2045. This transition involves a phased approach. By 2030, electricity suppliers must demonstrate that 80% of their electricity sold in Washington is generated from clean energy sources. By 2035, this requirement increases to 90%. The final phase requires 100% clean energy by 2045. The Act defines “clean energy” to include renewable resources like solar, wind, and hydroelectric power, as well as nuclear power, and specifies that certain greenhouse gas-emitting resources, such as coal, are prohibited from being used to meet the clean energy targets. The Act also establishes a framework for electricity conservation and energy efficiency programs, and includes provisions for ensuring grid reliability and affordability during the transition. The specific percentage of clean energy required by 2030 is a key milestone in this legislative framework, representing a significant step towards the ultimate goal.

The Washington State Legislature’s approach to climate change mitigation and adaptation often involves a multi-faceted strategy that integrates sector-specific regulations with broader market-based mechanisms. The state has established ambitious greenhouse gas (GHG) reduction targets, necessitating a comprehensive suite of policies. One key aspect of this strategy is the regulation of emissions from the transportation sector, which is a significant contributor to overall GHGs in Washington. The Clean Car Standards, adopted by Washington, align with California’s emissions standards, which are generally more stringent than federal standards. These standards require automakers to sell a certain percentage of zero-emission vehicles (ZEVs) and advanced clean vehicles in the state. Furthermore, Washington has implemented the Climate Commitment Act (CCA), a cap-and-trade program that places a declining limit on the total amount of GHGs that can be emitted by covered sectors, including transportation fuels. Under the CCA, entities covered by the program must acquire allowances for their emissions. The revenue generated from allowance auctions is then invested in projects that further reduce emissions and promote climate resilience, often prioritizing investments in communities disproportionately impacted by climate change and pollution. The question asks about the primary mechanism for achieving transportation sector emissions reductions in Washington under its climate change framework. While direct regulation of vehicle efficiency (like fuel economy standards) is part of the Clean Car Standards, and investments in public transit are a component of climate strategy, the CCA’s cap-and-trade system directly incentivizes and mandates emissions reductions across covered industries, including those supplying transportation fuels. The CCA’s design specifically targets the reduction of emissions from fossil fuel combustion in the transportation sector by creating a market price for carbon and limiting total emissions. This makes it a foundational and overarching mechanism for driving reductions in this sector, in conjunction with other complementary policies.

The Washington State Legislature, through initiatives like the Climate Commitment Act (CCA), has established a framework for reducing greenhouse gas emissions. The CCA mandates the creation of a cap-and-invest program, which sets a declining limit on emissions from covered sectors and allows companies to purchase allowances for their emissions. This program aims to drive investment in clean technologies and emission reduction projects. A key aspect of the CCA is the allocation and auctioning of these allowances. The revenue generated from allowance auctions is then directed towards specific climate-related investments and initiatives, often referred to as “Climate Commitment Act investments.” These investments are intended to further the state’s climate goals, support communities disproportionately affected by pollution, and promote economic opportunities in the clean energy sector. Understanding the interplay between the cap-and-invest mechanism, allowance allocation, auction revenue, and the subsequent investment strategies is crucial for grasping the operationalization of Washington’s climate policy. The specific details of how allowances are distributed, the frequency and structure of auctions, and the criteria for allocating investment funds are all integral components of the CCA’s effectiveness.

Washington’s Climate Commitment Act (CCA), codified in Revised Code of Washington (RCW) 70A.65, establishes a cap-and-invest program to reduce greenhouse gas emissions. The program sets a declining limit on emissions from covered sectors and requires entities to obtain and surrender allowances for their emissions. The CCA mandates that a significant portion of the revenue generated from the auction of these allowances be invested in projects that benefit communities disproportionately impacted by pollution and climate change, as well as in clean energy and climate resilience initiatives. The act specifies that at least 60% of the proceeds from allowance auctions must be allocated to these environmental justice and climate investments. The remaining funds can be used for other state purposes, including general fund appropriations, but the core principle is the dedicated investment in climate solutions and equitable outcomes. Therefore, when considering the allocation of allowance auction revenue, the primary statutory mandate for direct climate and environmental justice investments is the 60% threshold.

The Washington State Legislature enacted the Climate Commitment Act (CCA) in 2021, establishing a cap-and-invest program to reduce greenhouse gas emissions. Under this program, covered entities must acquire allowances for their emissions. The CCA directs that proceeds from the auction of these allowances be deposited into the Climate Investment Account. This account is specifically designated for investments in projects that reduce greenhouse gas emissions and provide benefits to communities disproportionately impacted by climate change and pollution. The Washington State Department of Commerce is tasked with administering these funds, prioritizing projects that align with the CCA’s goals. These priorities include investments in clean transportation, energy efficiency, renewable energy, and natural climate solutions, with a strong emphasis on equity and environmental justice. Therefore, the primary legal mandate for the allocation of CCA proceeds is to fund projects that mitigate climate change and advance social equity, as administered through the Climate Investment Account.

The question probes the understanding of Washington State’s approach to carbon pricing, specifically how the Clean Air Act (CAA) and the state’s climate goals interact within the framework of the Climate Commitment Act (CCA). The CCA, enacted through Engrossed Substitute House Bill 1091 (ESHB 1091), established a cap-and-invest program for greenhouse gas emissions in Washington. This program sets a declining cap on emissions from covered sectors and requires covered entities to obtain allowances for their emissions. The “invest” component refers to the revenue generated from the auction of these allowances, which is then directed towards climate investments, including those that benefit communities disproportionately impacted by pollution and climate change. The CAA, while providing a federal framework for air quality management, does not mandate a specific cap-and-invest program at the state level. Therefore, Washington’s CCA is a state-level initiative that complements, rather than directly derives its pricing mechanism from, the federal CAA’s existing provisions for criteria pollutants. The concept of a “carbon tax” is distinct from a cap-and-invest system, although both aim to internalize the cost of carbon emissions. A carbon tax sets a direct price per ton of carbon, whereas cap-and-invest sets a quantity limit and allows the market to determine the price through allowance trading. Washington’s CCA is fundamentally a cap-and-invest program, not a direct carbon tax. The revenue from the CCA is statutorily dedicated to specific climate-related investments and tribal consultation, as outlined in ESHB 1091. The primary objective of the CCA is to reduce greenhouse gas emissions in alignment with Washington’s ambitious climate targets.

Washington’s Climate Commitment Act (CCA), enacted in 2021, establishes a cap-and-invest program designed to reduce greenhouse gas emissions across the state. The program sets declining limits on emissions for covered sectors, requiring entities to hold allowances for their emissions. These allowances can be bought at auctions or traded. The CCA mandates that a significant portion of the revenue generated from allowance sales be invested in projects that benefit communities disproportionately impacted by pollution and climate change, as well as in climate resilience and clean energy initiatives. This focus on equity and targeted investment is a key feature distinguishing it from purely market-based mechanisms. The CCA also includes provisions for periodic review and adjustment of the program to ensure it remains effective in meeting its emission reduction targets. The concept of “emissions budget” refers to the total amount of greenhouse gases allowed to be emitted by covered entities within a specific compliance period, which decreases over time. The program’s design aims to drive innovation in clean technologies and promote a just transition to a low-carbon economy.

The Washington State Clean Air Act, specifically Revised Code of Washington (RCW) 70A.65.040, addresses greenhouse gas emissions. This statute mandates the development of a climate commitment strategy by the Department of Ecology, which includes setting emissions reduction targets. For the purpose of this statute, the baseline year for emissions reduction targets is established as 2019. The law requires that by 2030, Washington must reduce its net greenhouse gas emissions by at least 50% below the 2019 levels. By 2050, the target is a reduction of at least 95% below 2019 levels, and to achieve net-zero greenhouse gas emissions. The core of this question lies in identifying the legally mandated baseline year for these ambitious reduction goals, which is crucial for understanding the scope and timeframe of Washington’s climate policy framework. The statute clearly defines this baseline to ensure a consistent and measurable approach to tracking progress towards its climate objectives.

Washington’s approach to climate change mitigation and adaptation is multifaceted, drawing upon statutory authority and administrative rule-making. The state has established greenhouse gas (GHG) emissions reduction targets through legislation such as the Climate Commitment Act (CCA), codified in Revised Code of Washington (RCW) 70A.65. The CCA mandates specific percentage reductions in statewide GHG emissions from 2019 levels by 2035, 2040, and 2050. A key mechanism for achieving these targets is the establishment of an emissions trading program, also part of the CCA. This program creates a cap-and-trade system where regulated entities must hold allowances for their emissions. The total number of allowances decreases over time, incentivizing emission reductions. The Washington Department of Ecology is the primary agency responsible for implementing and enforcing the CCA and its associated regulations, including the development of the cap-and-trade program rules, the setting of the emissions cap, and the allocation and auctioning of allowances. The revenue generated from allowance auctions is designated for specific purposes, including investments in communities disproportionately impacted by climate change and pollution, as outlined in the legislation. Other relevant statutes and initiatives, such as the Clean Energy Transformation Act (CETA), RCW 19.405, which mandates a 100% clean energy supply for Washington by 2045, complement the GHG reduction efforts. The state also engages in adaptation planning, considering impacts on natural resources, infrastructure, and public health, often through interagency coordination and public engagement processes.

The Washington State Legislature, through initiatives like the Climate Commitment Act (CCA), has established a cap-and-invest program. This program sets a declining limit, or cap, on greenhouse gas emissions from covered sectors. Businesses within these sectors must obtain allowances for each ton of carbon dioxide equivalent they emit. As the cap decreases over time, the scarcity of allowances increases, driving up their price. The “invest” component refers to the revenue generated from the auction of these allowances, which is then reinvested in projects that further reduce emissions and promote climate resilience, particularly benefiting communities disproportionately impacted by pollution and climate change. This mechanism creates a direct economic incentive for businesses to reduce their emissions to avoid purchasing expensive allowances or to sell surplus allowances if they reduce emissions below their allocated cap. The revenue recycling ensures that the transition to a low-carbon economy is supported by funding for adaptation and mitigation strategies.

The Washington State Legislature, through initiatives like the Climate Commitment Act (CCA), aims to reduce greenhouse gas emissions and promote clean energy. The CCA establishes a cap-and-trade program, which is a market-based mechanism. Under this program, a declining cap is set on the total amount of greenhouse gases that can be emitted by covered entities. These entities must obtain allowances for each ton of emissions. The market price of these allowances is determined by supply and demand. The revenue generated from the auction of these allowances is then allocated to various climate-related investments and programs, as outlined in RCW 70A.65.230. This approach seeks to incentivize emission reductions by making pollution more expensive, while simultaneously funding adaptation and mitigation efforts. The key legal framework here is the CCA itself, which is codified in Chapter 70A.65 RCW. The question probes the understanding of the fundamental mechanism of the CCA and its revenue utilization, distinguishing it from other regulatory approaches.

The Washington State Legislature enacted the Climate Commitment Act (CCA), codified in Revised Code of Washington (RCW) Chapter 70A.65, to address greenhouse gas emissions. A key component of the CCA is the establishment of an emissions trading program. Under this program, covered entities, such as large industrial facilities and fuel suppliers, are required to hold allowances for each ton of covered greenhouse gas emissions. The total number of allowances available in a given year is capped and declines over time, creating scarcity and incentivizing emission reductions. The program allows for the trading of these allowances, enabling entities that can reduce emissions cost-effectively to sell surplus allowances to entities facing higher abatement costs. The CCA also includes provisions for the use of offsets, which are emission reductions achieved from projects outside the capped sectors that meet strict verification standards. These offsets can be used by covered entities to meet a limited portion of their compliance obligations. The program’s design aims to achieve specific emission reduction targets for Washington State, aligning with broader climate goals. The concept of “emissions intensity” is relevant in the context of allowance allocation and potential future adjustments to the program, but the primary compliance mechanism revolves around the absolute quantity of emissions relative to the total allowance cap.

The Washington State Legislature enacted the Climate Commitment Act (CCA), codified in Revised Code of Washington (RCW) Chapter 70A.65, to address greenhouse gas emissions. The CCA establishes a cap-and-invest program, which is a market-based mechanism designed to reduce emissions from the state’s largest sources. Under this program, a declining cap is set on the total amount of greenhouse gases that covered entities can emit. These entities must hold allowances for each ton of carbon dioxide equivalent they emit. Allowances can be purchased at auctions or traded on a secondary market. A portion of the revenue generated from allowance auctions is then invested in projects that benefit communities disproportionately impacted by climate change and pollution, and support climate resilience. The CCA’s structure aims to incentivize emissions reductions by making polluting more expensive, while simultaneously funding climate solutions and ensuring an equitable transition. The question assesses understanding of the primary mechanism and funding source established by Washington’s landmark climate legislation.

The question pertains to the legal framework governing greenhouse gas emissions in Washington State, specifically concerning the interplay between state-level regulations and federal environmental law, such as the Clean Air Act. Washington’s approach to climate change mitigation often involves market-based mechanisms and sector-specific regulations designed to achieve emission reduction targets. Understanding the legal authority for these measures, particularly how they align with or supplement federal mandates, is crucial. The Washington State Legislature has enacted statutes like the Climate Commitment Act (CCA), which establishes a cap-and-trade program for covered sectors. This program aims to reduce emissions by setting a declining cap on emissions and allowing entities to trade allowances. The legal basis for such a program draws from the state’s authority to regulate air quality and protect public health and the environment, often interpreted broadly under state administrative procedure acts and environmental protection statutes. The effectiveness and legality of these state programs are frequently scrutinized in relation to federal preemption doctrines and the scope of authority granted to state agencies by the legislature. When considering challenges to such regulations, courts often examine whether the state law conflicts with federal law or intrudes upon areas reserved for federal regulation. The specific details of the CCA, including its allowance allocation, auctioning mechanisms, and use of proceeds, are all subject to legal interpretation and potential litigation. The question tests the understanding of which specific legislative act provides the foundational authority for Washington’s cap-and-trade system, a cornerstone of its climate policy. The Climate Commitment Act is the direct legislative enactment that established this system.

The Washington State Growth Management Act (GMA), codified in RCW Chapter 36.70A, mandates that counties and cities plan for future development to ensure that public facilities and services are adequate to serve the population. This includes planning for transportation, water, sewer, and schools. While the GMA primarily focuses on land use planning and urban growth, its provisions implicitly require consideration of climate change impacts on infrastructure and resource availability. Specifically, the requirement for adequate public facilities and services necessitates an understanding of how climate change may affect the capacity, reliability, and cost of these essential systems. For instance, increased precipitation events could strain stormwater management systems, requiring updated infrastructure planning. Sea-level rise could impact coastal infrastructure, necessitating adaptation measures. The GMA’s directive to consider environmental protection (RCW 36.70A.020) also encourages the integration of climate resilience into comprehensive plans. Therefore, while not explicitly a climate law, the GMA serves as a foundational legal framework within Washington State that requires local governments to address the implications of climate change through their land use and infrastructure planning processes. The question asks about the primary legal mandate that compels Washington State’s local governments to plan for the impacts of climate change on public facilities and services. This mandate stems from the Growth Management Act’s requirement for adequate public facilities and services to support projected population growth. While other environmental statutes may touch upon climate-related issues, the GMA is the overarching land use planning law that necessitates this forward-looking infrastructure and service planning.

The Washington State Legislature, through the Climate Commitment Act (CCA), established a cap-and-invest program designed to reduce greenhouse gas emissions. This program sets a declining cap on emissions from covered sectors and requires entities to obtain allowances for their emissions. These allowances can be purchased at auctions or traded. The revenue generated from allowance sales is then invested in projects that further reduce emissions and benefit communities disproportionately affected by climate change and pollution. The CCA’s framework for emissions reduction is primarily driven by market-based mechanisms, specifically the cap-and-trade system. The act mandates a specific trajectory for emissions reductions, aiming for a 95% reduction below 2019 levels by 2050. The program’s design incorporates provisions for equity and environmental justice, ensuring that investments from the program address historical inequities. The Washington Department of Ecology is the primary agency responsible for implementing and overseeing the CCA. The act also allows for the creation of offsets, which are emission reductions achieved outside the capped sectors, to be used by regulated entities to meet a portion of their compliance obligations, subject to strict criteria and verification.

The Washington State Legislature enacted the Climate Commitment Act (CCA) in 2021, establishing a cap-and-invest program designed to reduce greenhouse gas emissions across the state’s economy. This program sets a declining limit, or cap, on the total amount of greenhouse gases that can be emitted by covered entities. Businesses exceeding their allocated allowances must purchase allowances from the market or invest in emission reduction projects. The revenue generated from the sale of these allowances is then reinvested into programs that benefit communities disproportionately affected by climate change and pollution, as well as supporting climate resilience and clean energy initiatives. The CCA’s objective is to achieve specific emission reduction targets aligned with Washington’s climate goals, which are rooted in scientific assessments of climate change impacts relevant to the Pacific Northwest, including sea-level rise, changes in precipitation patterns, and increased wildfire risk. The program’s design incorporates principles of environmental justice by prioritizing investments in communities that have historically borne the brunt of environmental degradation and are most vulnerable to climate impacts. This approach reflects a broader trend in state-level climate policy to integrate equity considerations into mitigation and adaptation strategies, moving beyond purely market-based mechanisms to address social and environmental justice dimensions of climate action. The CCA’s effectiveness is subject to ongoing review and adaptation based on emission trends and program outcomes.

The Washington State Legislature, through the Climate Commitment Act (CCA), established a cap-and-invest program designed to reduce greenhouse gas emissions. This program sets a declining limit, or cap, on the total amount of greenhouse gas emissions that can be emitted by covered entities. For emissions exceeding their allocated allowances, these entities must purchase allowances at auctions or through secondary markets. The revenue generated from these allowance sales is then invested in projects that further climate goals, promote environmental justice, and benefit communities disproportionately impacted by pollution and climate change. Key to the program’s design is the concept of emission reduction credits (ERCs), which can be generated by entities for verifiable emission reductions beyond their compliance obligations. These ERCs can then be sold to other covered entities that may find it more cost-effective to purchase them rather than reduce their own emissions or buy allowances. The CCA’s framework explicitly allows for the use of such credits as a compliance mechanism, provided they meet stringent verification standards and are issued under approved protocols. Therefore, a company that has already achieved significant emission reductions through voluntary measures prior to the CCA’s implementation, and can verify these reductions according to the program’s guidelines, can generate and utilize these credits for compliance purposes within the cap-and-invest system. This incentivizes early action and provides flexibility in achieving emissions targets.

The Washington State Legislature, through initiatives like the Climate Commitment Act (CCA), has established a cap-and-invest program. This program sets declining limits on greenhouse gas emissions for covered sectors and requires entities to obtain allowances for their emissions. These allowances can be purchased at auctions or traded in a secondary market. The CCA mandates that a significant portion of the revenue generated from allowance auctions be invested in projects that reduce emissions and provide benefits to communities disproportionately impacted by pollution and climate change. This includes investments in clean transportation, energy efficiency, and renewable energy infrastructure. The “cap” aspect of the program refers to the legally binding limit on total emissions, which gradually decreases over time, forcing covered entities to innovate and reduce their carbon footprint. The “invest” aspect refers to the allocation of auction revenue to fund climate mitigation and adaptation strategies. The program’s design aims to create a market-based incentive for emissions reduction while ensuring that the transition to a low-carbon economy is equitable and benefits vulnerable populations within Washington State.

The Washington State Legislature enacted the Climate Commitment Act (CCA) in 2021, establishing a cap-and-invest program for greenhouse gas emissions. This program is designed to reduce emissions from the state’s largest sources by setting a declining limit on emissions and requiring covered entities to obtain allowances for their emissions. These allowances can be purchased through quarterly auctions or traded on a secondary market. The revenue generated from allowance sales is allocated to specific climate-related investments and programs, as outlined in the legislation. Key provisions include the establishment of an emissions cap that decreases over time, requirements for covered entities to hold sufficient allowances to cover their emissions, and the creation of a Climate Investment Account to fund various initiatives aimed at reducing emissions, promoting clean energy, and addressing climate impacts. The CCA’s design draws upon principles of market-based environmental regulation, seeking to achieve emissions reductions cost-effectively by allowing flexibility for regulated entities while ensuring overall environmental goals are met. The program’s success is contingent on its ability to drive innovation and investment in low-carbon technologies and practices across Washington’s economy.

The Washington State Legislature enacted the Climate Commitment Act (CCA) in 2021, establishing a cap-and-invest program designed to reduce greenhouse gas emissions across the state. This program places a declining limit, or cap, on the total amount of greenhouse gases that large emitters can release. Companies that emit above a certain threshold must obtain allowances for each ton of carbon dioxide equivalent they emit. The total number of allowances issued decreases over time, creating scarcity and driving up the price of emissions. The CCA also includes provisions for investing the proceeds from allowance auctions into projects that benefit communities disproportionately affected by pollution and climate change, as well as supporting climate resilience and clean energy initiatives. Key to the program’s implementation is the role of the Washington State Department of Ecology in managing the cap, overseeing the allowance allocation and auction process, and ensuring compliance. The program is designed to achieve a 95% reduction in greenhouse gas emissions below 1990 levels by 2050, with interim targets set for 2030 and 2035. The CCA also allows for linkage with other carbon markets, such as California’s cap-and-trade program, to expand the market and provide greater flexibility for regulated entities. The act explicitly addresses environmental justice by directing a significant portion of the revenue to communities that have historically borne a disproportionate burden of environmental pollution.