The Washington Department of Ecology has received inquiries about the potential effects of Initiative 2117.
In order to update all market participants, we are providing the following statement based on publicly available information:
The Department of Ecology is focused on our current statutory obligation to implement the Climate Commitment Act and ensure the success of the cap-and-invest program.
Initiative 2117 would repeal the Climate Commitment Act, codified as Chapter 70A.65 RCW, and prohibit state agencies from “implementing any type of carbon tax credit trading, also known as ‘cap and trade’ or ‘cap and tax’ scheme, including the climate commitment act previously codified as chapter 70A.65 RCW.”
If this measure becomes law, as of the effective date, Chapter 70A.65 RCW would be repealed, and the Department of Ecology would no longer have authority provided under the repealed provisions. Ecology continues to evaluate implications of the initiative’s potential passage.
I-2117 is an initiative to the legislature, versus an initiative to the people. Initiatives to the legislature are first introduced as bills for consideration during a legislative session. If the legislature does not pass the initiative, it will be placed on the November ballot. Some available information about how I-2117 would likely be implemented is in the recently published fiscal note: Fiscal Note Package 71007. Please note that this fiscal note is limited in scope, and is only an estimation of the financial impact of I-2117 if passed by the legislature. The I-2117 fiscal note assumes that the March 6, 2024 auction would be the final auction held, if passed by the legislature.
Legislative leaders have announced that they do not plan to take action on the initiative before the legislative session ends on March 7, and that it will go to the ballot in November. Unless voters decide to approve the initiative, Ecology will continue implementing the program as it currently stands, including holding all currently scheduled auctions for 2024. The impacts related to potential voter passage of the initiative will be published in a fiscal impact statement prior to the election.
