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The Washington Department of Ecology is responding to questions we have received regarding the potential impacts of Initiative 2117.
In order to update all market participants and interested parties at the same time, we are providing the following statement:
The Department of Ecology is focused on our statutory obligation to implement the Climate Commitment Act and the Cap-and-Invest Program pursuant to current law.
I-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.”
Unless I-2117 passes and takes effect, Ecology will continue implementing the Climate Commitment Act and the Cap-and-Invest Program as it currently stands, including holding all scheduled auctions and enforcing all compliance deadlines.
Covered and opt-in entities are required to submit compliance instruments equal to 30% of their 2023 covered emissions by the compliance deadline of Nov. 1, 2024. Failure to do so will result in an obligation to submit up to four penalty allowances for every one unsubmitted compliance instrument. Failure to meet this requirement within six months may result in civil penalties.
If I-2117 passes and takes effect, Chapter 70A.65 RCW would be repealed, and Ecology would no longer have authority provided under the repealed provisions. I-2117 would not repeal the statutes governing Ecology’s Greenhouse Gas Reporting Program, and Ecology would continue implementing this program if the initiative becomes law.
In the event that I-2117 is passed by voters, its earliest effective date would be Dec. 5, 2024. We have received questions about how we would implement the initiative upon its effective date. Many of these questions require Ecology to speculate about how it might respond to facts and circumstances not yet known. We do not believe it is appropriate for Ecology to speculate in this manner, as doing so could be unintentionally misleading. Regardless of the circumstances, Ecology will continue to abide by applicable law.
We remain committed to updating Cap-and-Invest market participants and interested parties about the potential impacts of I-2117 as new information becomes available.
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