Senate committee hears bill to strengthen Washington clean fuels standard, raise 2038 carbon‑intensity target

Representative Fitzgibbon, sponsor of House Bill 1409, told the Senate Environment, Energy and Technology Committee that the bill would strengthen Washington’s Clean Fuels Program and create a more tailored enforcement approach.

"With this bill, create a more tailored approach, based on the size of the violation, penalties that are tailored to the that that I think are more appropriate for the kinds of violations that we would be likely to see in this program," Representative Fitzgibbon said.

The bill would require the Department of Ecology to reduce the carbon intensity of regulated transportation fuels to 45% below 2017 levels by 2038 and would allow Ecology, subject to conditions, to set a 55% reduction by 2038. Ecology would make intermediate target adjustments beginning in 2026; the bill also limits increases until at least one new or expanded in‑state biofuel facility has received an applicable permit. The bill removes certain JLARC and session‑adjournment gating conditions in current law.

Why it matters: Supporters said HB 1409 would restore market certainty and improve incentives for in‑state clean fuel production. Leah Missick of Climate Solutions told the committee the West Coast market is evolving and Washington risks falling behind without stronger targets: "This update will also balance our climate policies in relation to each other, helping us cut pollution more efficiently and affordably." Scott Richards of Clean Fuels Alliance America said Washington’s program has already reduced emissions and that tighter targets would better position the state to attract investments.

Key provisions and program mechanics

- Target: 45% reduction in fuel carbon intensity by 2038, with a potential 55% target if Ecology finds certain implementation and emissions benchmarks are unmet. - Intermediate targets: Ecology must set intermediate adjustments beginning in 2026. - In‑state production trigger: Ecology may not increase the standard beyond a cumulative 20% reduction until at least one new or expanded in‑state biofuel facility has obtained an applicable permit (streamlined permitting language appears in the bill). - Penalties and accounts: The bill replaces Clean Air Act penalty authority with a program‑specific penalty schedule, routs penalties into a new carbon emissions reduction account, and makes penalties appealable to the Pollution Control Hearings Board. - Market transparency: Ecology must publish market analysis and forecasts (price comparisons, supply/demand trends and market activity) on its website.

Support and concerns

Supporters included transportation utilities and environmental organizations that argued stronger, clearer goals and tailored enforcement will spur clean fuels and investments. Logan Barr of Tacoma Public Utilities said a stronger program would "give utilities like ours the certainty to move forward with critical projects." Joel Creswell of the Department of Ecology testified as technical staff that rapid growth in renewable diesel has increased credit supply and depressed credit prices, reducing market incentives, and that a stronger carbon intensity standard will better align incentives with state greenhouse gas limits.

Opponents or cautioning voices raised affordability concerns. Industry and consumer advocates warned that program changes can affect fuel prices and urged state analysis of consumer impacts; witnesses noted recent variances in credit prices and urged monitoring and modeling before further changes.

What did not happen today

The hearing was a public briefing and testimony session; the committee did not take a formal vote on the bill during this meeting.

Provenance

Topic introduced: "staff, may we have a briefing on house bill 14 0 9?" (block_0, evidence excerpt).

Topic finish: committee closed the public hearing on HB 14‑09 and moved on to other bills (block_4699, evidence excerpt).