SB 5703 — Concerning fair treatment of municipal solid waste systems.

S-2031.1S-0935.2 SUBSTITUTE SENATE BILL 5703 State of Washington 69th Legislature 2025 Regular Session By Senate Ways & Means (originally sponsored by Senators Holy, Riccelli, Short, Christian, Fortunato, Lovelett, and Nobles)Nobles READReferred FIRSTto TIMECommittee 02/28/25.on Local Government.

1 SSBSB 5703 chapter indicates that emissions for any calendar year from 2015 through 2019 equaled or exceeded any of the following thresholds, or if the person is a first jurisdictional deliverer and imports electricity into the state during the compliance period:

2 SSBSB 5703 equivalent emissions if fully combusted or oxidized, excluding the amounts for fuel products that are produced or imported with a documented final point of delivery outside of Washington and combusted outside of Washington, and excluding the amounts:

(2) A((A person is a covered entity as of the beginning of the second 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 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)) A person is a covered entity as of January 1, 2036, if the person reported emissions under RCW 70A.15.2200 or provided emissions data as required by this chapter, 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)(3))) A person is a covered entity 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 2027 or 2028, where the person owns or operates a railroad company, as that term is defined in RCW p.81.04.010, and the railroad company's emissions equal or exceed 25,000 metric tons of carbon dioxide equivalent.

3(((4))) SSB(3) 5703When 81.04.010,a andcovered theentity railroadreports, company'sduring a compliance period, emissions equalfrom ora exceedfacility 25,000under metricRCW tons70A.15.2200 that are below the thresholds specified in subsection (1) ((or (2))) of carbonthis dioxidesection, equivalent.the covered entity continues to have a compliance obligation p.

(4)3 WhenSB a5703 covered entity reports, during a compliance period, emissions from a facility under RCW 70A.15.2200 that are below the thresholds specified in subsection (1) or (2) of this section, the covered entity continues to have a compliance obligation through the current compliance period.

(5)(((5))) (4) For types of emission sources described in subsection (1) of this section that begin or modify operation after January 1, 2023, and((and types of emission sources described in subsection (2) of this section that begin or modify operation after ((2027))2027,)) 2036, coverage under the program starts in the calendar year in which emissions from the source exceed the applicable thresholds in subsection (1) or((or (2)(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.

(6)(((6))) (5) For emission sources described in subsection (1) of this section that are in operation or otherwise active between 2015 and 2019 but were not required to report emissions for those years under RCW 70A.15.2200 for the reporting periods between 2015 and 2019, coverage under the program starts in the calendar year following the year in which emissions from the source exceed the applicable thresholds in subsection (1) of this section as reported pursuant to RCW 70A.15.2200 or provided as required by this chapter, or upon formal notice from the department that the source is expected to p.exceed the applicable emissions threshold for the first year that source is required to report emissions, whichever happens first.

4Sources SSBmeeting 5703these exceedcriteria theare applicablerequired emissionsto thresholdtransfer fortheir first allowances on the first transfer deadline of the year thatfollowing sourcethe isyear requiredin towhich reporttheir emissions, whicheveras happensreported first.under RCW 70A.15.2200 or p.

Sources4 meetingSB these5703 criteria are required to transfer their first allowances on the first transfer deadline of the year following the year in which their emissions, as reported under RCW 70A.15.2200 or provided as required by this chapter, were equal to or exceeded the emissions threshold.

(7)(((7))) (6) The following emissions are exempt from coverage in the program, regardless of the emissions reported under RCW 70A.15.2200 or provided as required by this chapter:

This(((8))) exemption(7) isThe availabledepartment untilshall Januarynot 1,require 2036.multiple covered entities to have a compliance obligation for the same emissions.

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5 SSB 5703 (8) The department shall not require multiple covered entities to have a compliance obligation for the same emissions.

The department must bep. notified of such an agreement at least 12 months prior to the compliance obligation period for which the agreement is applicable.

(9)(a)5 TheSB legislature5703 intendsbe tonotified promoteof asuch growingan andagreement sustainableat economyleast and12 months prior to avoidthe leakagecompliance ofobligation emissionsperiod fromfor manufacturingwhich tothe otheragreement locations.is applicable.

(((9))) (8)(a) The legislature intends to promote a growing and sustainable economy and to avoid leakage of emissions from manufacturing to other locations.

(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 this chapter and under any greenhouse gas emission p.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.

6 SSB 5703 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.

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