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The Washington Department of Ecology is notifying Cap-and-Invest market participants about upcoming changes required under House Bill 2215 (2026). Beginning with emissions that occur in 2027, a new coverage threshold of 500 metric tons of CO₂e will apply to eligible suppliers that import gasoline, diesel, biodiesel, and propane. In addition, lubricants will be considered covered emissions under the Cap-and-Invest Program.
Ecology will publish full guidance expanding on these new requirements and how they apply to importers of gasoline, diesel, biodiesel, and propane in the coming weeks.
Summary of Changes
Beginning in 2027:
- A new, lower coverage threshold of 500 metric tons CO₂e will be applied to certain importers of gasoline, diesel, biodiesel, and propane - replacing the current 25,000 metric ton CO₂e coverage threshold.
- Some participants may remain eligible for the existing 25,000 metric ton CO₂e threshold depending on when their operations began and how their fuel imports activities are structured.
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be considered covered emissions under the program.
These changes are required by HB 2215, enacted by the 2026 Legislature.
Background
HB 2215 revises how certain fuels products are treated under the Cap-and-Invest Program:
- Lubricants are removed from coverage and will no longer result in a compliance obligation.
- The coverage threshold for certain importers of gasoline, diesel, biodiesel, and propane is lowered to 500 metric tons CO₂e per year beginning in 2027.
- Some market participants may remain eligible for the current 25,000 metric tons CO₂e threshold depending on the timing of their business operations and the nature of their fuel sourcing operations.
These updates do not change how covered emissions are calculated, but they do change which entities are covered beginning in 2027.
Impacts for Market Participants
These changes may impact requirements for certain fuel suppliers regarding whether they fall under the program’s coverage thresholds.
- Entities that import the listed fuels may become newly covered starting in 2027 if they exceed the 500 metric tons CO₂e threshold.
- Current covered entities that supply lubricants will no longer have a compliance obligation associated with those products.
Next Steps
Ecology will publish full guidance explaining how the 500 metric tons CO₂e threshold applies to importers of gasoline, diesel, biodiesel, and propane. Additional updates are expected in the coming weeks on Ecology’s Emissions Reporting and Verification webpage. Ecology will continue to provide updates related to these changes as they become available.
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