Washington committee hears industry, labor and environmental views on bill to require EITE decarbonization planning

Madam Chair opened the Environment and Energy Committee hearing on House Bill 2537 on Jan. 27 and called for a staff report from committee staffer Jake Lipson, who summarized existing Climate Commitment Act (CCA) allowance allocations and how HB 2537 would change the post-2034 reporting and allocation framework.

Jake Lipson told the committee that EITE facilities currently receive no-cost allowances equal to baseline emissions in the first compliance period and that the statute schedules two 3% reductions in subsequent four‑year periods through 2034. He said HB 2537 would require Ecology’s legislatively directed report to include methods for annual reductions consistent with allowance budgets and state emission limits, methods to adjust allowances for leakage risk, and policy-design recommendations for consigning allowances and investing proceeds in facility emission‑reduction activities.

Representative Beth D'Alessio, the bill’s prime sponsor, said the measure is intended to gather better information from roughly 40 EITE facilities so the legislature and Ecology can tailor post‑2034 policy and avoid leakage while maintaining the state’s climate…