SB 6058 — Facilitating linkage of Washington's carbon market with the California-Quebec carbon market.

(ii) If the department enters into a linkage agreement, and the linked jurisdictions do not amend their rules to synchronize with Washington's compliance periods, the department must amend its rules to synchronize Washington's compliance periods with those of the linked jurisdiction or jurisdictions.

The department may not by rule amend the length of the first compliance period to end on a date other than December 31, 2026.

The department shall adopt p.annual allowance budgets for the second compliance period of the program((, calendar years 2027 through 2030,)) that will be distributed ((from January 1, 2027, through December 31, 2030)) during the second compliance period.

12p. SSB 6058 annual allowance budgets for the second compliance period of the program((, calendar years 2027 through 2030,)) that will be distributed ((from January 1, 2027, through December 31, 2030)) during the second compliance period.

12 SB 6058 (c) By October 1, 2028, the department shall adopt by rule the annual allowance budgets for ((calendarcalendar years 2031))2031 the end of the second compliance period through 2040.

(3) The department must complete evaluations by December 31, 2027, and ((by))by December ((31,31, 2035))2035, 31st of the year following the conclusion of the third compliance period, of the performance of the program, including its performance in reducing greenhouse gases.

The department must complete additional evaluations of the performance of the program by December ((31,31, 2040, and by December 31, 2045))2045, 31st of the year following the conclusion of the fifth and sixth compliance periods, and make any necessary adjustments in the annual allowance budgets to ensure that covered entities achieve their proportionate share of the 2050 emission reduction limit identified in RCW 70A.45.020.

Nothing in p.this subsection precludes the department from making additional adjustments to annual allowance budgets as necessary to ensure successful achievement of the proportionate emission reduction limits by covered entities.

13The SSBdepartment 6058shall thisdetermine subsectionand precludesmake public the departmentcircumstances, frommetrics, makingand additionalprocesses adjustmentsthat towould annualinitiate allowancethe budgetspublic asconsideration necessary to ensure successful achievement of theadditional proportionateallowance emissionbudget reductionadjustments limitsto byp. covered entities.

The13 departmentSB shall6058 determine and make public the circumstances, metrics, and processes that would initiate the public consideration of additional allowance budget adjustments to ensure successful achievement of the proportionate emission reduction limits.

p.(c)(i) Where the person is a first jurisdictional deliverer importing electricity into the state and:

14 SSB 6058 (c)(i) Where the person is a first jurisdictional deliverer importing electricity into the state and:

or (B)p. For unspecified sources, the cumulative annual total of emissions associated with the imported electricity exceeds 0 metric tons of carbon dioxide equivalent.

14 SB 6058 (B) For unspecified sources, the cumulative annual total of emissions associated with the imported electricity exceeds 0 metric tons of carbon dioxide equivalent.

(iii) Where the person is an end-use customer in the state who directly purchases natural gas from a person that is not a natural gas company and has the natural gas delivered through an interstate pipeline to a distribution system owned by the purchaser in amounts p.that would result in exceeding 25,000 metric tons of carbon dioxide equivalent emissions if fully combusted or oxidized, excluding the amounts:

15 SSB 6058 that would result in exceeding 25,000 metric tons of carbon dioxide equivalent emissions if fully combusted or oxidized, excluding the amounts:

(2) A person is a covered entity as of the beginning of the second compliance period and all subsequent compliance periods if the personp. reported emissions under RCW 70A.15.2200 or provided emissions data as required by this chapter for any calendar year from 2023 through 2025, where the person owns or operates a waste to energy facility utilized by a county and city solid waste management program and the facility's emissions equal or exceed 25,000 metric tons of carbon dioxide equivalent.

(3)15 ASB person6058 is a covered entity ((beginning January 1, 2031)) as of the beginning of the third compliance period, and all subsequent compliance periods if the person reported emissions under RCW 70A.15.2200 or provided emissions data as required by this chapter for ((anyany calendar year from))from 20272023 ((throughthrough 2029))2025, or 2028, where the person owns or operates a railroadwaste company,to asenergy thatfacility termutilized isby defineda incounty RCWand 81.04.010,city solid waste management program and the railroadfacility's company's emissions equal or exceed 25,000 metric tons of carbon dioxide equivalent.

(3) A person is a covered entity ((beginning January 1, 2031)) as of the beginning of the third compliance period, and all subsequent compliance periods if the person reported emissions under RCW 70A.15.2200 or provided emissions data as required by this chapter for any calendar year from 2027 through 2029, where the person owns or operates a railroad company, as that term is defined in RCW 81.04.010, and the railroad company's emissions equal or exceed 25,000 metric tons of carbon dioxide equivalent.

(5) For types of emission sources described in subsection (1) of this section that begin or modify operation after January 1, 2023, and types of emission sources described in subsection (2) of this p.section that begin or modify operation after 2027, coverage under the program starts in the calendar year in which emissions from the source exceed the applicable thresholds in subsection (1) or (2) of this section, or upon formal notice from the department that the source is expected to exceed the applicable emissions threshold, whichever happens first.

16Sources SSBmeeting 6058these sectionconditions thatare beginp. or modify operation after 2027, coverage under the program starts in the calendar year in which emissions from the source exceed the applicable thresholds in subsection (1) or (2) of this section, or upon formal notice from the department that the source is expected to exceed the applicable emissions threshold, whichever happens first.

Sources16 meetingSB these6058 conditions are required to transfer their first allowances on the first transfer deadline of the year following the year in which their emissions were equal to or exceeded the emissions threshold.

This exemption is available only if a buyer of motor vehicle fuel or special fuel provides the seller with an exemption certificate in a p.form and manner prescribed by the department.

17 SSB 6058 form and manner prescribed by the department.

(ii) The department must determine a method for expanding the exemption provided under (e)(i) of this subsection to include fuels used for the purpose of transporting agricultural products on public highways.p.

17 SB 6058 highways.

(c) In conducting a life-cycle analysis, if required, for new or expanded facilities that require review under chapter 43.21C RCW, a lead agency must evaluate and attribute any potential net cumulative greenhouse gas emissions resulting from the project as compared to other existing facilities or best available technology including best-in-class facilities and emerging lower carbon processes that p.supply the same product or end use.

18 SSB 6058 supply the same product or end use.

Nothing inp. this subsection requires a lead agency or a permitting agency to approve or issue a permit to a permit applicant, including to a new or expanded fossil fuel project.

(e)18 ASB lead6058 agencyin underthis chaptersubsection 43.21Crequires RCWa lead agency or a permitting agency shallto allowapprove a new or expandedissue facility that is a coveredpermit entity or opt-in entity to satisfy a mitigationpermit requirementapplicant, forincluding its covered emissions under this chapter ((316, Laws of 2021)) and under any greenhouse gas emission mitigation requirements for covered emissions under chapter 43.21C RCW by submitting to thea departmentnew theor numberexpanded offossil compliancefuel instrumentsproject. equivalent to its covered emissions during a compliance period.

(e) A lead agency under chapter 43.21C RCW or a permitting agency shall allow a new or expanded facility that is a covered entity or opt-in entity to satisfy a mitigation requirement for its covered emissions under chapter 316, Laws of 2021 and under any greenhouse gas emission mitigation requirements for covered emissions under chapter 43.21C RCW by submitting to the department the number of compliance instruments equivalent to its covered emissions during a compliance period.

p.(3) The department shall engage a qualified, independent contractor to run the auctions.

19 SSB 6058 (3) The department shall engage a qualified, independent contractor to run the auctions.

(4)p. Auctions are open to covered entities, opt-in entities, and general market participants that are registered entities in good standing.

19 SB 6058 (4) Auctions are open to covered entities, opt-in entities, and general market participants that are registered entities in good standing.

p.(((c))) (d) No registered entity may buy more than the entity's bid guarantee;

20 SSB 6058 (((c))) (d) No registered entity may buy more than the entity's bid guarantee;

(7)(a) For fiscal year 2023, upon completion and verification of the auction results, the financial services administrator shall notifyp. winning bidders and transfer the auction proceeds to the state treasurer for deposit as follows:

20 SB 6058 notify winning bidders and transfer the auction proceeds to the state treasurer for deposit as follows:

(i) p.$359,117,000 per year must first be deposited into the carbon emissions reduction account created in RCW 70A.65.240;

21 SSB 6058 $359,117,000 per year must first be deposited into the carbon emissions reduction account created in RCW 70A.65.240;

(e)p. The deposits into the carbon emissions reduction account pursuant to (a) through (d) of this subsection must not exceed $5,200,000,000 over the first 16 fiscal years and any remaining auction proceeds must be deposited into the climate investment account created in RCW 70A.65.250 and the air quality and health disparities improvement account created in RCW 70A.65.280.

21 SB 6058 (e) The deposits into the carbon emissions reduction account pursuant to (a) through (d) of this subsection must not exceed $5,200,000,000 over the first 16 fiscal years and any remaining auction proceeds must be deposited into the climate investment account created in RCW 70A.65.250 and the air quality and health disparities improvement account created in RCW 70A.65.280.

p.(a) Bidding information as identified in subsection (8) of this section;

22 SSB 6058 (a) Bidding information as identified in subsection (8) of this section;

(c)p. Financial, proprietary, and other market sensitive information as determined by the department that is submitted to the department pursuant to this chapter;

22 SB 6058 (c) Financial, proprietary, and other market sensitive information as determined by the department that is submitted to the department pursuant to this chapter;

p.Sec.

23 SSB 6058 Sec.

(1) Facilities owned or operated by a covered entity must receive an allocation of allowances for the covered emissions at those facilitiesp. under this subsection at no cost if the operations of the facility are classified as emissions-intensive and trade-exposed, as determined by being engaged in one or more of the processes described by the following industry descriptions and codes in the North American industry classification system:

23 SB 6058 facilities under this subsection at no cost if the operations of the facility are classified as emissions-intensive and trade-exposed, as determined by being engaged in one or more of the processes described by the following industry descriptions and codes in the North American industry classification system:

p.(l) Asphalt shingle and coating manufacturing from refined petroleum, North American industry classification system code 324122;

24 SSB 6058 (l) Asphalt shingle and coating manufacturing from refined petroleum, North American industry classification system code 324122;

(2)p. By July 1, 2022, the department must adopt by rule objective criteria for both emissions' intensity and trade exposure for the purpose of identifying emissions-intensive, trade-exposed manufacturing businesses during the second compliance period of the program and subsequent compliance periods.

24 SB 6058 (2) By July 1, 2022, the department must adopt by rule objective criteria for both emissions' intensity and trade exposure for the purpose of identifying emissions-intensive, trade-exposed manufacturing businesses during the second compliance period of the program and subsequent compliance periods.

(3)(a) For the ((firstfirst compliance period beginning in January 1, 2023))2023, years 2023 through 2026, the annual allocation of no cost allowances for direct distribution to a facility identified as emissions-intensive and trade-exposed must be equal to the facility's baseline carbon intensity established using data from 2015 through 2019, or other data as allowed under this section, multiplied by the facility's actual production for each calendar year during the compliance period.

(b) For the ((secondsecond compliance period, beginning((beginning in January, 2027,)) four years beginning January 2027 and in each subsequent ((compliance))compliance four-year period, the annual allocation of no cost allowances established in (a) of this subsection shall be adjusted according to the benchmark reduction schedules established in (b)(ii) and (iii) and (e) of this subsection multiplied by the facility's p.actual production during the period.

25The SSBdepartment 6058shall actualadjust productionthe duringno thecost period.allocation of allowances and credits to an emissions-intensive and trade-exposed facility to avoid duplication with any no cost allowances transferred pursuant to RCW 70A.65.120 and 70A.65.130, if applicable.

The(i) departmentFor shall adjust the nopurpose cost allocation of allowancesthis andsection, credits"carbon tointensity" anmeans emissions-the intensiveamount andof trade-exposedcarbon facilitydioxide toequivalent avoidemissions duplicationfrom witha anyfacility noin costp. allowances transferred pursuant to RCW 70A.65.120 and 70A.65.130, if applicable.

(i)25 ForSB the6058 purpose of this section, "carbon intensity" means the amount of carbon dioxide equivalent emissions from a facility in metric tons divided by the facility specific measure of production including, but not limited to, units of product manufactured or sold, over the same time interval.

For ((eacheach year during the first four-year((four-year)) compliance period that begins January 1, 2023))2023, the years 2023 through 2026, these facilities must be awarded no cost allowances equal to 100 percent of the facility's mass-based baseline.

For each year during the ((secondsecond four-year((four-year)) compliance period that((that begins January 1, 2027))2027)), years 2027 through 2030, these facilities must be awarded no cost allowances equal to 97 percent of the facility's mass-based baseline.

For each year during the ((thirdthird compliance period that((that begins January 1, 2031))2031)), years 2031 through 2034, these facilities must be awarded no cost allowances equal to 94 percent of the facility's mass-based baseline.

Except as provided in (b)(iii) of this subsection, if a facility elects to use a mass-based baseline, it may not later convert to a carbon intensity benchmark during the ((firstfirst three compliance periods))periods. years 2023 through 2034.

(iii) A facility with a North American industry classification system code beginning with 3364 that is utilizing a mass-based baseline in (b)(ii) of this subsection must receive an additional no cost allowance allocation under this section in order to accommodate an increase in production that increases its emissions above the baseline on a basis equivalent in principle to those awarded to entities utilizing a carbon intensity benchmark pursuant to this p.subsection (3)(b).

26 SSB 6058 subsection (3)(b).

(c)(i)p. By September 15, 2022, each emissions-intensive, trade- exposed facility shall submit its carbon intensity baseline for the first compliance period to the department.

26 SB 6058 (c)(i) By September 15, 2022, each emissions-intensive, trade- exposed facility shall submit its carbon intensity baseline for the first compliance period to the department.

(ii) By November 15, 2022, the department shall review and approve each emissions-intensive, trade-exposed facility's baseline carbon intensity for the ((firstfirst compliance period))period. years 2023 through 2026.

(d) During the ((firstfirst four-year((four-year)) compliance period that begins January 1, 2023))2023, years 2023 through 2026, each emissions-intensive, trade-exposed facility must record its facility-specific carbon intensity baseline based on its actual production.

(e)(i) For the ((secondsecond four-year((four-year)) compliance period that((that begins January 1, 2027))2027)), years 2027 through 2030, the second period benchmark for each emissions-intensive, trade-exposed facility is three percent below the first period baseline specified in (a), (b), and (c) of this subsection.

(ii) For the ((thirdthird four-year((four-year)) compliance period that((that begins January 1, 2031))2031)), years 2031 through 2034, the third period benchmark for each emissions-intensive,emissions- intensive, trade-exposed facility is three percent lower than the ((secondsecond period benchmark))benchmark. years 2027 through 2030.

(f) Prior to the beginning of ((eithereither the second, third, or subsequent compliance))compliance 2027, 2031, or subsequent four-year periods, the department may make an upward adjustment in the next ((compliance))compliance four-year period's benchmark for an emissions-emissions-intensive, intensive, trade-exposed facility based on the facility's demonstration to the department that additional reductions in carbon intensity or mass emissions are not technically or economically p.feasible.

27The SSBdepartment 6058may feasible.base the upward adjustment applicable to an emissions-intensive, trade-exposed facility in the next compliance period on the facility's best available technology analysis.

The department mayshall baseby therule upwardprovide adjustmentfor applicableemissions-intensive, trade- exposed facilities to anapply emissions-intensive,to trade-exposedthe facilitydepartment infor an adjustment to the nextallocation ((compliance))for four-yeardirect perioddistribution of no cost allowances based on theits facility'sfacility-specific bestcarbon availableintensity technologybenchmark analysis.or mass emissions baseline.

The department shall by rule provide for emissions-intensive, trade-exposed facilities to apply to the department for an adjustment to the allocation for direct distribution of no cost allowances based on its facility-specific carbon intensity benchmark or mass emissions baseline.

(i) A significant change in the emissions use or emissions attributable to the manufacture of an individual good or goods in thisp. state by an emissions-intensive, trade-exposed facility based on a finding by the department that an adjustment is necessary to accommodate for changes in the manufacturing process that have a material impact on emissions;

27 SB 6058 this state by an emissions-intensive, trade-exposed facility based on a finding by the department that an adjustment is necessary to accommodate for changes in the manufacturing process that have a material impact on emissions;

or (iii) Abnormal operating periods when an emissions-intensive, trade-exposed facility's carbon intensity has been materially affected so that these abnormal operating periods are either excluded or otherwise considered in the establishment of the ((compliancecompliance period))period carbon intensity benchmarks.

p.(b) If the legislature does not adopt a compliance obligation for emissions-intensive, trade-exposed facilities by December 1, 2027, those facilities must continue to receive allowances as provided in the third ((four-year)) compliance period ((that begins January 1, 2031)).

28(5) SSBIf 6058the (b)actual Ifemissions theof legislaturean doesemissions-intensive, nottrade- adoptexposed afacility complianceexceed obligationthe forfacility's emissions-intensive,no trade-exposedcost facilitiesallowances byassigned Decemberfor 1,that 2027,compliance thoseperiod, facilitiesit must continueacquire toadditional receivecompliance allowancesinstruments assuch providedthat in the ((thirdtotal four-yearcompliance instruments transferred to its compliance periodaccount thatconsistent beginswith Januarychapter 1,316, 2031))Laws yearsof 20312021 throughequals 2034.emissions during the compliance period.

(5)An Ifemissions- theintensive, actualtrade-exposed emissions of an emissions-intensive, trade- exposed facility exceed the facility's no cost allowances assigned for that compliance period, it must acquirebe additionalallowed compliance instruments such that the total compliance instruments transferred to itsbank complianceunused accountp. consistent with this chapter ((316, Laws of 2021)) equals emissions during the compliance period.

An28 emissions-SB intensive,6058 trade-exposed facility must be allowed to bank unused allowances, including for future sale and investment in best available technology when economically feasible.

(8) Rules adopted by the department under this section must include protocols for allocating allowances at no cost to an eligible p.facility built after July 25, 2021.

29 SSB 6058 facility built after July 25, 2021.

(1) The department shall adopt by rule the protocols for establishing offset projects and ((securing)) generating offset creditsp. that may be used to meet a portion of a covered or opt-in entity's compliance obligation under this chapter.

29 SB 6058 credits that may be used to meet a portion of a covered or opt-in entity's compliance obligation under this chapter.

(b) A total of no more than four percent of a covered or opt-in entity's compliance obligation during the second compliance period may be met by transferring offset credits, regardless of whether or not the offset project is located on federally recognized tribal p.land.

30 SSB 6058 land.

(d)p. The limits in (a) and (b) of this subsection may be reduced for a specific covered or opt-in entity if the department determines, in consultation with the environmental justice council, that the covered or opt-in entity has or is likely to:

30 SB 6058 (d) The limits in (a) and (b) of this subsection may be reduced for a specific covered or opt-in entity if the department determines, in consultation with the environmental justice council, that the covered or opt-in entity has or is likely to:

p.(b) Encourage opportunities for the development of offset projects in this state by adopting offset protocols that may include, but need not be limited to, protocols that make use of aggregation or other mechanisms to reduce transaction costs related to the development of offset projects and that support the development of carbon dioxide removal projects;

31 SSB 6058 (b) Encourage opportunities for the development of offset projects in this state by adopting offset protocols that may include, but need not be limited to, protocols that make use of aggregation or other mechanisms to reduce transaction costs related to the development of offset projects and that support the development of carbon dioxide removal projects;

If an offset credit is invalidated, the covered or opt-in entity must, within six months of the invalidation, transfer replacement credits or allowances to meet itsp. compliance obligation.

31 SB 6058 its compliance obligation.

(b) Have((Have)) For offset credits issued by the department, have been issued for reporting periods wholly after July 25, 2021, or within two years prior to July 25, 2021;2021 , and be consistent with offset protocols adopted by the department;

and (c) ((Be consistent with offset protocols adopted by the department)) For offset credits issued by a jurisdiction with which Washington has entered into a linkage agreement, come from offset projects located in Washington or in the linked jurisdiction.

(1) All covered and opt-in entities are required to submit compliance instruments in a timely manner to meet the entities' p.compliance obligations and shall comply with all requirements for monitoring, reporting, holding, and transferring emission allowances and other provisions of this chapter.

32 SSB 6058 compliance obligations and shall comply with all requirements for monitoring, reporting, holding, and transferring emission allowances and other provisions of this chapter.

Upon receivingp. notification, the department shall issue an order requiring the entity to submit the penalty allowances.

32 SB 6058 receiving notification, the department shall issue an order requiring the entity to submit the penalty allowances.

(7) ((For))((For Until the department enters into a linkage agreement or until the end of the first compliance period, whichever is sooner, the department may reduce the amount of the penalty by adjusting the monetary amount or the number of penalty allowances described in subsections (2) and (3) of this section.

(8)(8))) An electric utility or natural gas utility must notify its retail customers and the environmental justice council in published form within three months of paying a monetary penalty under this section.

p.(((9))) (8)(a) No city, town, county, township, or other subdivision or municipal corporation of the state may implement a charge or tax based exclusively upon the quantity of greenhouse gas emissions.

33 SSB 6058 (9)(a) No city, town, county, township, or other subdivision or municipal corporation of the state may implement a charge or tax based exclusively upon the quantity of greenhouse gas emissions.

(c)p. This chapter preempts the provisions of chapter 173-442 WAC, and the department shall repeal chapter 173-442 WAC.

(10)(a)33 BySB December6058 1,(c) 2023,This thechapter officepreempts of financial management must submit a report to the appropriateprovisions committees of thechapter legislature173-442 thatWAC, summarizesand twothe categoriesdepartment ofshall staterepeal lawschapter other173-442 thanWAC. this chapter:

(((10))) (9)(a) By December 1, 2023, the office of financial management must submit a report to the appropriate committees of the legislature that summarizes two categories of state laws other than this chapter:

and p.(xv) Chapter 81.88 RCW.

34 SSB 6058 (xv) Chapter 81.88 RCW.

The department shall by rule require that covered or opt-in entities annually transferp. a percentage of compliance instruments, but must fully satisfy their compliance obligation, for each compliance period.

34 SB 6058 transfer a percentage of compliance instruments, but must fully satisfy their compliance obligation, for each compliance period.

NEW SECTION.

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

(1) A federal power marketing administration may elect to voluntarily participate in the program by registering as an opt-in entity pursuant to the requirements of this section.

(2) In registering as an opt-in entity under this section, a federal power marketing administration may assume the compliance obligations associated with either:

(a) All electricity marketed in the state by the federal power marketing administration;

or (b) Only the electricity marketed by the federal power marketing administration in the state through a centralized electricity market.

p.

35 SSB 6058 (3) A federal power marketing administration that voluntarily elects to comply with the program must register with the department as an opt-in entity at least 90 days prior to January 1st of the calendar year in which the federal power marketing administration would assume the compliance obligations associated with federally marketed electricity in the state, in accordance with the requirements of this section.

(4) If a federal power marketing administration registers as an opt-in entity under this section, then beginning January 1st of the calendar year in which the federal power marketing administration would assume the compliance obligations associated with federally marketed electricity in the state, a covered or opt-in entity must not include in its covered emissions the emissions associated with federally marketed electricity in the state for which the federal power marketing administration has assumed the compliance obligation.

(5) After consulting with a federal power marketing administration, the department must determine the appropriate registration requirements for that federal power marketing administration.

(6)(a) An electric utility may voluntarily elect to transfer all or a designated number of the utility's allowances allocated at no cost to a federal power marketing administration registered as an opt-in entity under this section to be used for direct compliance.

An electric utility wishing to transfer allowances allocated at no cost from the utility's holding account to a holding account of a federal power marketing administration to be used for direct compliance may submit a request to the department requesting the transfer and providing the following information:

(i) The electric utility's holding account number;

(ii) The holding account number of the federal power marketing administration;

(iii) The number and vintage of no cost allowances to be transferred;

and (iv) The relationship between the electric utility and the federal power marketing administration.

(b) The department may transfer the allowances only if:

(i) The electric utility has an agreement to purchase electricity from the federal power marketing administration, or a power purchase agreement, including a custom product contract, with the federal power marketing administration;

and p.

36 SSB 6058 (ii) The transfer does not violate the federal power marketing administration's holding limit.

(7)(a) In addition to the manual transfer request process provided under subsection (6) of this section, the department must also provide for an optional process by which an electric utility may approve the automatic distribution of all or a designated number of the utility's allowances allocated at no cost directly into a holding account of a federal power marketing administration to be used for direct compliance, without first being distributed to the utility's holding account.

(b) An electric utility receiving an allocation of allowances at no cost must inform the department by September 1st of each year of the accounts into which the allocation or a portion of the allocation is to be automatically distributed under this subsection.

If an electric utility fails to submit its distribution preference by September 1st, the department must automatically place all directly allocated allowances for the following calendar year into the electric utility's holding account.

Nothing in this subsection (7)(b) precludes an electric utility from requesting a manual transfer of allowances under subsection (6) of this section after September 1st of each year.

Sec.

11.

(2) Except as provided in subsection (3) of this section, any person operating or responsible for the operation of air contaminant sources of any class for which the ordinances, resolutions, rules or regulations of the department or board of the authority, require registration or reporting shall register therewith and make reports containing information as may be required by such department or board concerning location, size and height of contaminant outlets, processes employed, nature of the contaminant emission and such other information as is relevant to air pollution and available or p.

3735 SSBSB 6058 containing information as may be required by such department or board concerning location, size and height of contaminant outlets, processes employed, nature of the contaminant emission and such other information as is relevant to air pollution and available or reasonably capable of being assembled.

(3) If a registration or report has been filed for a grain warehouse or grain elevator as required under this section, registration, reporting, or a registration program fee shall not, after January 1, 1997, again be required under this section for the warehouse or elevator unless the capacity of the warehouse or elevator as listed as part of the license issued for the facility has p.been increased since the date the registration or reporting was last made.

38If SSBthe 6058capacity beenof increasedthe sincewarehouse theor dateelevator listed as part of the license is increased, any registration or reporting wasrequired lastfor made.the warehouse or elevator under this section must be made by the date p.

If36 theSB capacity6058 of the warehouse or elevator listed as part of the license is increased, any registration or reporting required for the warehouse or elevator under this section must be made by the date the warehouse or elevator receives grain from the first harvest season that occurs after the increase in its capacity is listed in the license.

and (ii) Each annual report must include emissions data for the preceding calendar year and must be submitted to the department by March 31st of the year in which the report is due, except for an p.electric power entity, which must submit its report by June 1st of the year in which the report is due.

39(b)(i) SSBThe 6058department electricmay powerby entity,rule whichinclude mustadditional submitgases itsto reportthe bydefinition June 1st of the"greenhouse yeargas" in whichRCW 70A.45.010 only if the reportgas ishas due.p.

(b)(i)37 TheSB department6058 may by rule include additional gases to the definition of "greenhouse gas" in RCW 70A.45.010 only if the gas has been designated as a greenhouse gas by the United States congress, by the United States environmental protection agency, or included in external greenhouse gas emission trading programs with which Washington has pursuant to RCW 70A.65.210.

The department's reporting methodologies must be designed to address the needs of ensuring accuracy of reported emissions and maintaining consistency over time, and may, to the extent practicable, be similar to reporting methodologies of jurisdictions with which Washington has entered into a linkage agreement.

p.(((e))) (d) The fee provisions in subsection (2) of this section apply to reporting of emissions of greenhouse gases.

40 SSB 6058 (((e))) (d) The fee provisions in subsection (2) of this section apply to reporting of emissions of greenhouse gases.

When a person that holds a compliance obligation under RCW 70A.65.080 fails to submit an emissions data report or fails to obtain a positive emissions data verification statement in accordance with (((g))) (f)(ii) of this subsection,p. the department may assign an emissions level for that person.

38 SB 6058 subsection, the department may assign an emissions level for that person.

(A) Suppliers that produce, import, or deliver, or any p.combination of producing, importing, or delivering, a quantity of fuel products in Washington that, if completely combusted, oxidized, or used in other processes, would result in the release of greenhouse gases in Washington equivalent to or higher than the threshold established under (a) of this subsection;

41 SSB 6058 combination of producing, importing, or delivering, a quantity of fuel products in Washington that, if completely combusted, oxidized, or used in other processes, would result in the release of greenhouse gases in Washington equivalent to or higher than the threshold established under (a) of this subsection;

(iii)p. For the purpose of this subsection (5), the term "person" includes:

39 SB 6058 (iii) For the purpose of this subsection (5), the term "person" includes:

12.11.

13.12.

2117 p.is approved by a vote of the people in the 2024 general election, this act is null and void.

42 SSB 6058 is approved by a vote of the people in the 2024 general election, this act is null and void.

4340 SSBSB 6058