HB 2401 — Providing for the responsible management of refrigerant gases with a higher global warming potential than carbon dioxide that are used in appliances or other infrastructure.

(4) AThe refrigerant stewardship organization and any person hired by the refrigerant stewardship organization to carry out services related to refrigerant recovery, transport, collection, or reclamation must manage covered refrigerants in a manner consistent with best practices consistent with federal refrigerant management regulations under sections 608 and 609 of the clean air act (40 C.F.R.

(5) AThe refrigerant stewardship organization may suspend or terminate a collection site that does not adhere to the collection site criteria in the approved plan or that poses an immediate health or safety concern.

AThe refrigerant stewardship organization must notify the department upon suspending or terminating a collection site.

(1) AThe refrigerant stewardship organization must carry out promotional activities in support of plan implementation including, but not limited to:

(2) During the first year of program implementation and every five years thereafter, a refrigerant stewardship organization must p.

10 SHBHB 2401 (2) During the first year of program implementation and every five years thereafter, the refrigerant stewardship organization must carry out a survey of the program's nonproducer participants awareness to determine the effectiveness of the requirements of the program and awareness of the program established under this chapter.

AThe refrigerant stewardship organization must share the results of the awareness surveys with the department, who may choose to make the information public.

(1) AThe refrigerant stewardship organization must ensure adequate funding is available to fully implement its stewardship plan, including the implementation of aspects of the plan addressing:

(2)(a) AThe refrigerant stewardship organization must develop and implement a system to collect charges from participating producers to cover the costs of plan implementation in an equitable, environmentally sound, and socially just manner.

Except as provided in (f)(e) of this subsection, athe refrigerant stewardship organization's system of charges must utilize a standard per-mass unit assessment applied based on the volume of covered refrigerants introduced into Washington.

(b) The system of charges must apply equally regardless of whether that refrigerant is contained in precharged equipment or manufactured,p. imported, distributed, or sold directly onto the market as bulk covered refrigerants.

For11 prechargedHB equipment,2401 manufactured, imported, distributed, or sold directly onto the systemmarket ofas p.bulk covered refrigerants.

11(c) SHBIn 24012029, chargesan mayinitial relyrate onof reasonableat estimationsleast $7.00 per pound of covered refrigerant volumesmust containedbe used to calculate the charges due from producers in the prechargedfirst equipment.year of the program.

(c)(d) ToIn allowsubsequent ayears, refrigerantthe stewardship organization to establish an equitable and reasonable system of charges fordue from producers of precharged equipment and bulk covered refrigerants, and to allow the refrigerant stewardship organization to calculate recovery rates for purposes of section 5 of this act, a refrigerant stewardship organization may requirebe aadjusted produceras tofollows: provide product specifications and product sale and distribution volumes in or into Washington for precharged equipment and bulk covered refrigerants.

(d)(i) InThe 2028,refrigerant stewardship organization may propose an initialadjustment rateto ofthe atdepartment leastto $7.00adjust perthe poundrate ofbased coveredon refrigerantthe mustperformance beassessment useddescribed toin calculatesection 5 of this act, and the chargesdepartment duemay fromreview producersand inmake thea firstdetermination yearwhether ofto approve the program.adjustment;

(e) In subsequent years, the charges due from producers may be adjusted as follows:

(i) A refrigerant stewardship organization may propose an adjustment to the department to adjust the rate based on the performance assessment described in section 5 of this act, and the department may review and make a determination whether to approve the adjustment;

(f)(e) Applicable no earlier than in calendar year 2031 of program operations, and using the process specified in (e)(d) of this subsection, athe refrigerant stewardship organization's system of chargescharge may utilize an assessment that is weighted based on the global warming potential of each covered refrigerant, with a proportionally higher fee being assessed for gases with comparatively higher global warming potential.

(4) AThe refrigerant stewardship organization is responsible for all costs of recovered covered refrigerant collection, transportation, p.processing, education, administration, and agency reimbursement in accordance with best environmental management practices.

12(5) SHBThe 2401refrigerant processing,stewardship education,organization administration,is not authorized to reduce or cease collection, education and agencyoutreach, reimbursementor inother accordanceactivities withimplemented bestunder environmentalan managementapproved practices.plan based on the achievement of program performance goals or achieving a level of p.

(5)12 AHB refrigerant2401 stewardship organization is not authorized to reduce or cease collection, education and outreach, or other activities implemented under an approved plan based on the achievement of program performance targets or achieving a level of programmatic efficacy that is higher than that required in section 5 of this act.

(6)(a) To encourage persons to manage recovered covered refrigerants through the program and to ensure that the program targetsgoals established in section 5 of this act are achieved, athe refrigerant stewardship organization must propose in its plan, and carry out in its program, the payment of a financial incentive for each mass unit, such as pound of covered refrigerant, that a person furnishes to the program for management.

AThe refrigerant stewardship organization must demonstrate to the department that the amount of the financial incentive for each unit of covered refrigerant will be sufficient to incentivize the use of the program by service technicians or other persons with unwanted recovered covered refrigerant, to discourage illegal dumping or venting of refrigerants or other pollutants, and must be in addition to any other incentive payments offered for the same covered refrigerantsproducts or precharged equipment through utility rebate, energy efficiency, or other programs.

(b) The financial incentives offered through the program may vary as appropriate to ensure the achievement of the performancegoals targets established in section 5 of this act in an efficient manner.

In developing the financial incentives, athe refrigerant stewardship organization may consider any combination of the following:

p.(7) The refrigerant stewardship organization must reimburse demonstrable costs incurred at a collection site as a result of a serving as a collection site for the program including, but not limited to, associated labor costs, transportation costs, and other costs associated with safety, accessibility, and operation of the collection site.

13(8) SHBIt 2401is (c) If the departmentintent determines that a refrigerant stewardship organization has not met a performance target established in section 5 of this act, the departmentlegislature mayto requirenot theincentivize refrigerant stewardshipdestruction organization to increase the value of the financial incentive established under this subsection.chapter.

(7)As A refrigerant stewardship organization must reimburse demonstrable costs incurred at a collection site as a result of a serving as a collection site for the programnationwide including,p. but not limited to, associated labor costs, transportation costs, and other costs associated with safety, accessibility, and operation of the collection site.

(8)(a)13 ItHB is2401 thehydrofluorocarbon intentphasedown oframps down the legislatureuse toof nothydrofluorocarbon incentivizerefrigerants, refrigerantthe destructiondepartment undermay thisevaluate chapter in the initialbenefits years of programincentivizing implementation.destruction.

(b)On Asor federalafter programsJanuary under1, 2035, the Americandepartment innovationmay, inby manufacturingrule, act,set an incentive for destruction of covered refrigerants which may not be used for any carbon credits or other greenhouse gas offset credits, including thoseunder inchapter 4070A.65 C.F.R.RCW.

Part 84, and similar state programs phase down the use of hydrofluorocarbon refrigerants, the department may evaluate the benefits of incentivizing destruction, and on or after January 1, 2035, the department may by rule set an incentive for destruction of covered refrigerants that may not be used for any carbon credits or other greenhouse gas offset credits, including under chapter 70A.65 RCW.

(1) Beginning July 1, 2028,2029, retail establishments may not sell, offer for sale, otherwise make available for sale, install, or otherwise furnish to customers a covered refrigerant precharged p.equipment unless the producer of the covered refrigerant participates in a refrigerant stewardship organization.

14(2) SHBA 2401refrigerant equipmentservice containingprovider aor coveredretail refrigerantestablishment unlessis in compliance with the producerrequirements responsibleof forsubsection (1) of this section and is not subject to penalties as long as the prechargedwebsite equipmentmade participatesavailable inby the department under section 12 of this act lists, as of the date a product is made available for retail sale, a producer of a covered product, or brand and appliance model of a covered appliance, sold by the retail establishment or refrigerant stewardshipservice organization.provider as being a participant in an approved plan or the implementer of an approved plan.

(2) A retail establishment is in compliance with the requirements of subsection (1) of this section and is not subject to penalties as long as the website made available by the department under section 12 of this act lists, as of the date the precharged equipment is made available for retail sale, the producer responsible for the brand and appliance model of the precharged appliance, sold by the retail establishment as being a participant in an approved plan or the implementer of an approved plan.

However, a retail establishment that agrees to make a retail location availablep. to serve as a collection site or otherwise offers refrigerant recovery services for a program must comply with the requirements for collection sites and service providers, consistent with section 6 of this act.

(4)14 AHB retail2401 establishmentavailable sellingto orserve offeringas prechargeda equipmentcollection containingsite coveredor refrigerantotherwise foroffers salerefrigerant inrecovery Washingtonservices mustfor providea informationprogram tomust customers,comply providedwith to the retailrequirements establishmentfor bycollection eachsites refrigerantand stewardshipservice organization,providers, regardingconsistent availablewith end-of-lifesection management6 optionsof forthis coveredact. refrigerants collected by the refrigerant stewardship organization.

The(4) informationA thatretail aestablishment refrigerantselling stewardshipor organizationoffering mustprecharged makeequipment availablecontaining tocovered retailrefrigerant establishmentsfor andsale refrigerantin serviceWashington providers must include,provide butinformation isto notcustomers, limitedprovided to,to in-storethe signage, written materials, and other promotional materials that retail establishmentsestablishment andor refrigerant service providersprovider mustby usethe torefrigerant informstewardship customersorganization, ofregarding the available end-of-life management options for covered refrigerantsproducts collected by the refrigerant stewardship organization.

The information that a refrigerant stewardship organization must make available to retail establishments and refrigerant service providers must include, but is not limited to, in-store signage, written materials, and other promotional materials that retail establishments and refrigerant service providers must use to inform customers of the available end-of-life management options for covered products collected by the refrigerant stewardship organization.

(a) InformEmphasize customersto regardingconsumers the climateimportance impacts of refrigerants;using the program established under this chapter for unwanted covered products;

(b) Encourage customers to choose a service technician participating in the program and encourage customers to confirm with p.their service technician that the customer's refrigerants will be reclaimed;

15 SHB 2401 their service technician that the customer's refrigerants will be reclaimed;

(1) By June 1, 2029,2030, and each June 1st thereafter, athe refrigerant stewardship organization must submit an annual report to the department covering the preceding calendar year of program implementation.

(a)p. An independent financial audit of a program implemented by the refrigerant stewardship organization, including a breakdown of the program's expenses, such as collection, storage, transportation, and other operational activities in support of the program;

15 HB 2401 (a) An independent financial audit of a program implemented by the refrigerant stewardship organization, including a breakdown of the program's expenses, such as collection, storage, transportation, and other operational activities in support of the program;

and (iii) A calculation of the recovery rate and other performance targets established under section 5 of this act, including the sources of data relied upon in the recovery rate calculation;

p.(e) A summary of the activities carried out at the collection sites;

16 SHB 2401 (e) A summary of the activities carried out at the collection sites;

(iii) Recovery rates and progress towards performance goals and targets;

and (iv) The program necessary to continue progress towards performance goals and targets;

(2)p. On March 1st, June 1st, September 1st, and December 1st of each year in which a refrigerant stewardship organization implements a program, a refrigerant stewardship organization must submit to the department an updated list of participating producers of covered refrigerants and precharged equipment, and the brands and models for precharged equipment, to be posted on the department's website.

(3)16 TheHB nonproducer2401 participants(2) inOn aMarch refrigerant1st, stewardshipJune organization,1st, suchSeptember as1st, distributors and wholesalersDecember 1st of bulkeach coveredyear refrigerantsin orwhich prechargedthe equipment,refrigerant arestewardship requiredorganization toimplements keepa recordsprogram, of information needed by the refrigerant stewardship organization tomust fulfillsubmit to the refrigerantdepartment stewardshipan organization'supdated reportinglist requirementsof listedparticipating inproducers thisof sectioncovered refrigerants and toprecharged aidequipment, and the performancebrands assessmentand requirementsmodels listedfor inprecharged sectionequipment, 5to ofbe thisposted act.on the department's website.

Nonproducer(3) participantsThe mustnonproducer reportparticipants informationin tothe a refrigerant stewardship organizationorganization, insuch aas formdistributors and mannerwholesalers prescribedof bulk covered refrigerants or precharged equipment, are required to keep records of information needed by the refrigerant stewardship organization,organization to fulfill the refrigerant stewardship organization's reporting requirements listed in this section and consistentto withaid the following:performance assessment requirements listed in section 5 of this act.

(a)Nonproducer Byparticipants Marchmust 31streport ofinformation eachto yearthe a refrigerant stewardship organization implementsin a program,form distributors and wholesalersmanner mustprescribed reportby tothe each refrigerant stewardship organizationorganization, quantities and typesconsistent ofwith coveredthe refrigerantsfollowing: sold to them by each producer participating in that refrigerant stewardship organization and p.

17(a) SHBBy 2401March 31, 2029, and every year thereafter, distributors and wholesalers must report to the refrigerant stewardship organization quantities and types of covered refrigerants sold to them by each producer and subsequently resold by them for use in the state of Washington, and not neighboring states, in the prior year;

(d) The department may require athe refrigerant stewardship organization to submit any of the records listed in (a) through (c) of this subsection at any time.

AThe refrigerant stewardship organization may request that the information or records be made available only for the confidential use of the department, the director of the department, or the appropriate division of the department.

The director of the department must give consideration to the request and ifp. this action is not detrimental to the public interest and is otherwise in accordance with the policies and purposes of chapter 43.21A RCW, the director must grant the request for the information to remain confidential as authorized in RCW 43.21A.160.

17 HB 2401 if this action is not detrimental to the public interest and is otherwise in accordance with the policies and purposes of chapter 43.21A RCW, the director must grant the request for the information to remain confidential as authorized in RCW 43.21A.160.

By December 31, 2026,2027, the department shall adopt rules as necessary to implement, administer, and enforce this chapter.

(2)(a) By April 1, 2027,2028, and every April 1st thereafter, the department must:

p.(i) Identify the projected annual costs to implement, administer, and enforce this chapter;

18(ii) SHBDetermine 2401a (i)total Identifyannual fee payment to be paid by the projectedrefrigerant annualstewardship costsorganization that is adequate to implement,cover, administer,but andnot enforceexceed, the costs identified in (a)(i) of this chapter;subsection;

(ii)(iii) DetermineBy aDecember total31, annual2027, feeadopt paymentrules to beequitably paiddetermine bythe eachannual refrigerantfee stewardshippayment organizationby that is adequate to cover, but not exceed, the costsrefrigerant identifiedstewardship inorganization; (a)(i) of this subsection;

(iii)and By(iv) DecemberSend 31,notice 2026,to adoptthe rulesrefrigerant tostewardship equitablyorganization determineof thefee annualamounts feedue paymentconsistent bywith arules refrigerantadopted stewardshipunder organization;(a)(iii) of this subsection.

and (iv) Send notice to a refrigerant stewardship organization of fee amounts due consistent with rules adopted under (a)(iii) of this subsection.

(3)(a)p. The department must review new, updated, and revised plans submitted by a refrigerant stewardship organization.

18 HB 2401 (3)(a) The department must review new, updated, and revised plans submitted by the refrigerant stewardship organization.

(ii) Review new, updated, and revised refrigerant stewardship organization plans within 120180 days of receipt of a complete plan;

AThe refrigerant stewardship organization must submit a new or revised plan within 60 days after receipt of the letter of disapproval.

p.(I) Use the enforcement powers specified in section 13 of this act;

19 SHB 2401 (I) Use the enforcement powers specified in section 13 of this act;

(4) The department must review annual reports submitted by athe refrigerant stewardship organization as required in section 10 of this act.

(c)p. Make a determination as to whether or not an annual report meets the requirements of section 10 of this act and notify a refrigerant stewardship organization of the:

19 HB 2401 (c) Make a determination as to whether or not an annual report meets the requirements of section 10 of this act and notify the refrigerant stewardship organization of the:

(5) Consistent with section 6 of this act, the department may grant an infeasibility waiver temporarily exempting, for the duration of a plan, athe refrigerant stewardship organization from the requirement to provide a permanent collection site in each county.

The department may only grant an exemption if the refrigerant stewardship organization demonstrates that no refrigerant distributor, wholesaler, or service provider exists to service a collection site, no local government or retail establishment has voluntarily elected to serve as a collection site, and that access to collection services by persons in possession of recovered covered refrigerants will not be substantially affected by the lack of a p.permanent collection site in a low population density county.

20 SHB 2401 permanent collection site in a low population density county.

(a) Lists details of eachthe refrigerant stewardship organization along with its member producers, participants, and the covered refrigerants and brands and models precharged equipment that are included under the refrigerant stewardship organization's plan;

NEWp. SECTION.

20 HB 2401 NEW SECTION.

p.(b) Revoke the refrigerant stewardship organization's plan approval and require the refrigerant stewardship organization to implement its contingency plan;

21 SHB 2401 (b) Revoke the refrigerant stewardship organization's plan approval and require the refrigerant stewardship organization to implement its contingency plan;

NEWp. SECTION.

21 HB 2401 NEW SECTION.

Producers and athe refrigerant stewardship organization, acting on behalf of producers that prepare, submit, and implement a refrigerant stewardship organization plan pursuant to this chapter and who are thereby subject to regulation by the department, are hereby granted immunity from state laws relating to antitrust, restraint of trade, unfair trade practices, and other regulation of trade and commerce, for the limited purpose of planning, reporting, and operating the stewardship program, including:

Expenditures from the account may be used only for administering, implementing, and enforcing the p.requirements of this chapter.

22 SHB 2401 requirements of this chapter.

(4) Compensation of a person whose position is primarily representing the refrigerant stewardship organization relative to the passage,p. defeat, approval, or modification of legislation that is being considered by a government entity;

22 HB 2401 passage, defeat, approval, or modification of legislation that is being considered by a government entity;

p.Sec.

23 SHB 2401 Sec.

(b)p. Orders issued pursuant to RCW 18.104.043, 18.104.060, 43.27A.190, 70A.15.2520, 70A.15.3010, 70A.300.120, 70A.350.070, 70A.245.020, 70A.65.200, 70A.555.110, 70A.560.020, section 13 of this act, 86.16.020, 88.46.070, 90.14.130, 90.46.250, 90.48.120, and 90.56.330.

23 HB 2401 (b) Orders issued pursuant to RCW 18.104.043, 18.104.060, 43.27A.190, 70A.15.2520, 70A.15.3010, 70A.300.120, 70A.350.070, 70A.245.020, 70A.65.200, 70A.555.110, 70A.560.020, section 13 of this act, 86.16.020, 88.46.070, 90.14.130, 90.46.250, 90.48.120, and 90.56.330.

p.(g) Decisions of local conservation districts related to the denial of approval or denial of certification of a dairy nutrient management plan;

24 SHB 2401 (g) Decisions of local conservation districts related to the denial of approval or denial of certification of a dairy nutrient management plan;

(k) Decisions of the department of fish and wildlife to issue, deny, condition, or modify a hydraulic project approval permit under chapterp. 77.55 RCW, to issue a stop work order, to issue a notice to comply, to issue a civil penalty, or to issue a notice of intent to disapprove applications.

24 HB 2401 chapter 77.55 RCW, to issue a stop work order, to issue a notice to comply, to issue a civil penalty, or to issue a notice of intent to disapprove applications.

p.(c) Appeals of decisions by the department under RCW 90.03.110 and 90.44.220.

25 SHB 2401 (c) Appeals of decisions by the department under RCW 90.03.110 and 90.44.220.

(1) Any civil penalty provided in RCW 18.104.155, 70A.15.3160, 70A.205.280, 70A.300.090, 70A.20.050, 70A.245.040, 70A.245.050, 70A.245.070, 70A.245.080, 70A.245.130, 70A.245.140, 70A.65.200, 70A.455.090, 70A.555.110, 70A.560.020, section 13 of this act, 88.46.090, 90.03.600, 90.46.270, 90.48.144, 90.56.310, 90.56.330, and 90.64.102 and chapter 70A.355 RCW shall be imposed by a notice in writing, either by certified mail with return receipt requested or by personal service, to the person incurring the penalty from the departmentp. or the local air authority, describing the violation with reasonable particularity.

25 HB 2401 department or the local air authority, describing the violation with reasonable particularity.

p.(b) 30 days after receipt of the notice of disposition by a local air authority on application for relief from penalty, if such an application is made;

26 SHB 2401 (b) 30 days after receipt of the notice of disposition by a local air authority on application for relief from penalty, if such an application is made;

(5) All penalties recovered shall be paid into the state treasury and credited to the general fund except those penalties imposed pursuantp. to RCW 18.104.155, which shall be credited to the reclamation account as provided in RCW 18.104.155(7), RCW 70A.15.3160, the disposition of which shall be governed by that provision, RCW 70A.245.040 and 70A.245.050, which shall be credited to the recycling enhancement account created in RCW 70A.245.100, RCW 70A.300.090, 70A.555.110, and 70A.560.020, which shall be credited to the model toxics control operating account created in RCW 70A.305.180, RCW 70A.65.200, which shall be credited to the climate investment account created in RCW 70A.65.250, RCW 90.56.330, which shall be credited to the coastal protection fund created by RCW 90.48.390, ((and)) RCW 70A.355.070, which shall be credited to the underground storage tank account created by RCW 70A.355.090, and section 13 of this act, which shall be credited to the climate commitment account created in RCW 70A.65.260.

26 HB 2401 pursuant to RCW 18.104.155, which shall be credited to the reclamation account as provided in RCW 18.104.155(7), RCW 70A.15.3160, the disposition of which shall be governed by that provision, RCW 70A.245.040 and 70A.245.050, which shall be credited to the recycling enhancement account created in RCW 70A.245.100, RCW 70A.300.090, 70A.555.110, and 70A.560.020, which shall be credited to the model toxics control operating account created in RCW 70A.305.180, RCW 70A.65.200, which shall be credited to the climate investment account created in RCW 70A.65.250, RCW 90.56.330, which shall be credited to the coastal protection fund created by RCW 90.48.390, ((and)) RCW 70A.355.070, which shall be credited to the underground storage tank account created by RCW 70A.355.090, and section 13 of this act, which shall be credited to the climate commitment account created in RCW 70A.65.260.

Moneys in the p.account may be spent only after appropriation.

27 SHB 2401 account may be spent only after appropriation.

(d)p. Programs, activities, or projects that deploy renewable energy resources, such as solar and wind power, and projects to deploy distributed generation, energy storage, demand-side technologies and strategies, and other grid modernization projects;

27 HB 2401 (d) Programs, activities, or projects that deploy renewable energy resources, such as solar and wind power, and projects to deploy distributed generation, energy storage, demand-side technologies and strategies, and other grid modernization projects;

(v) Grants, rebates, and other financial incentives for agricultural harvesting equipment, heavy duty trucks, agricultural p.pump engines, tractors, and other equipment used in agricultural operations;

28 SHB 2401 pump engines, tractors, and other equipment used in agricultural operations;

(i)p. Programs, activities, or projects that improve energy efficiency, including district energy, and investments in market transformation of high efficiency electric appliances and equipment for space and water heating;

28 HB 2401 (i) Programs, activities, or projects that improve energy efficiency, including district energy, and investments in market transformation of high efficiency electric appliances and equipment for space and water heating;

(A) Full p.wage replacement, health benefits, and pension contributions for every worker within five years of retirement;

29 SHB 2401 wage replacement, health benefits, and pension contributions for every worker within five years of retirement;

(v)p. Transportation, municipal service delivery, and technology investments that increase a community's capacity for clean manufacturing, with an emphasis on communities in greatest need of job creation and economic development and potential for commute reduction;

29 HB 2401 (v) Transportation, municipal service delivery, and technology investments that increase a community's capacity for clean manufacturing, with an emphasis on communities in greatest need of job creation and economic development and potential for commute reduction;

p.(2) Moneys in the account may not be used for projects or activities that would violate tribal treaty rights or result in significant long-term damage to critical habitat or ecological functions.

30 SHB 2401 (2) Moneys in the account may not be used for projects or activities that would violate tribal treaty rights or result in significant long-term damage to critical habitat or ecological functions.

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

30 HB 2401 remainder of the act or the application of the provision to other persons or circumstances is not affected.

31 SHBHB 2401