HB 2537 — Emissions/trade-exposed

Summary

Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 1 section(s) of the Revised Code of Washington: RCW 70A.65.1.

• RCW 70A.65.1

  manufacturing businesses is a manufacturing business manufacturing businesses facilities a report to the appropriate committees of the senate and house of representatives that describes alternative methods for determining the amount and a schedule of allowances to be provided to facilities owned or operated by each covered entity designated as an emissions- intensive, trade-exposed facility from The report must include a review of global best practices in ensuring against emissions leakage and economic harm to businesses in carbon pricing programs and describe alternative methods of emissions performance benchmarking and mass-based allocation of no cost allowances. At a minimum, the department must evaluate benchmarks based on both carbon intensity and mass, as well as the use of best available technology as a method for compliance. In developing the report, the department shall form an advisory group that includes representatives of the manufacturers listed in subsection (1) of this section. (b) compliance obligation for → s 6 are each amended to read as follows: (1) Facilities owned o overed entity must receive an allocation of allowa ered emissions at those facilities under this sub if the operations of the facility are classified a ive and trade-exposed, as determined by being engage of the processes described by the following indust and codes in the North American industry classi as those classifications existed on January 1, 2026 (b) Paper manufacturing, including pulp mills, paper mills, and paperboard milling, North American industry classification system codes beginning with 322; (c) Aerospace product and parts manufacturing, North American industry classification system codes beginning with 3364; (d) Wood products manufacturing, North American industry classification system codes beginning with 321; (e) Nonmetallic mineral manufacturing, including glass container manufacturing, North American industry classification system codes beginning with 327; (f) Chemical manufacturing, North American industry classification system codes beginning with 325; (g) Computer and electronic product manufacturing, including semiconductor and related device manufacturing, North American industry classification system codes beginning with 334; (h) Food manufacturing, North American industry classification system codes beginning with 311; (i) Cement manufacturing, North American industry classification system code 327310; (j) Petroleum refining, North American industry classification system code 324110; (k) Asphalt paving mixtures and block manufacturing from refined petroleum, North American industry classification system code 324121; (l) Asphalt shingle and coating manufacturing from refined petroleum, North American industry classification system code 324122; and (m) All other petroleum and coal products manufacturing from refined petroleum, North American industry classification system code 324199. (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 facilities during the second compliance period of the prog and subsequent compliance periods. A manufacturing facility vered by subsection (1)(a) through (m) of this section is cons red an emissions-intensive, trade-exposed facility and is eligi for allocation of no cost allowances as described in this sect In addition, any covered party that ⟦INS⟧owns or operates a manufacturing facility criteria adopted by ru so eligible for treatment as emissions- intensive, trade-expos is eligible for allocation of no cost allowances as describe is section. In developing the objective criteria under this on, the department must consider the locations of facili otentially identified as emissions- intensive, trade-exp relative to overburden s. (3)(a) For the ye ugh 2026, the annual allocation of no cost allowances fo ribution to a facility identified as emissions-intensiv -exposed must be equal to the facility's baseline ca y established using data from 2015 through 2019, or other wed under this section, multiplied by the facility's actu for each calendar year during the compliance period. Fo using the mass-based approach, the allocation of no cost shall be equal to the facility's mass-based baseline us 2015 through 2019, or other data as allowed under this (b) For the fou nning January 2027 and in each subsequent four-year annual allocation of no cost allowances established this subsection shall be adjusted according to the bench n schedules established in (b)(ii) and (iii) and (e) of tion multiplied by the facility's actual production duri , except as provided in subsection (9) of this section materia ly impacted the facility and the baseline period should be expande to include years prior to 2015. For the years 2023 through 2026, t ese facilities must be awarded no cost allowances equal to 100 pe cent of the facility's mass-based baseline. For each year during he years 2027 through 203

  amended

Action History

1. February 04, 2026

   Referred to Appropriations.

Sponsors

• (Doglio) · Primary

Subjects