Supplemental session reshuffles Climate Commitment Act money; SRC leaders warn of future cuts to recovery programs

Don, the council’s legislative lead, delivered a detailed briefing on the 2026 supplemental session and its implications for Puget Sound recovery funding.

Don summarized the central mechanism of the session as a one‑time reallocation: unusually high CCA (Climate Commitment Act) auction revenues created an $800 million windfall that the legislature used to refinance previously bonded capital projects with CCA money, which freed cash/bond capacity that was then moved into the operating budget to help close an operating deficit. "This is kind of a ... mechanism that the legislature used to move money around to shift funding of existing projects, not to invest in anything new," Don said.

That maneuver meant programs historically funded with bonds (including several Puget Sound capital grant programs) received CCA capital funding; meanwhile some operating line items that had relied on CCA support were reduced in the final budget, including an elimination of DNR operating support for the Derelict Aquatic Structures program and reductions to regional fisheries enhancement group funding.

Don cautioned that CCA is a declining revenue source by design — revenues should fall as regulated entities reduce emissions — and that the account structure was changed during the session to create capital, operating and transportation accounts. He warned the council to expect pressure to reduce CCA‑supported operating commitments in future sessions unless alternate revenue streams are identified.

Council members flagged concerns about the intent of CCA funding: several members emphasized the statutory goal that CCA money should be additive, not replacing historic funding. Don agreed that the swap runs counter to that intent, even if the legislature labeled it a one‑time fix.

Don also reviewed key bills that passed and failed with recovery relevance: bills adjusting derelict‑vessel enforcement, account restructuring for CCA, and several bills that did not pass including ones on ocean scrubber discharges and expanded salmon advisory commissions. He encouraged members to engage in legislative tours and outreach ahead of 2027 to educate new legislative leaders about the capital and operating needs for Puget Sound recovery.

Next steps: staff will track CCA forecasts and incorporate fiscal risk into the 2027 Puget Sound legislative priority setting; the partnership expects an updated auction revenue forecast in June and will re‑assess program exposure to future cuts.