HB2957 – Regulating indirect sources under the Clean Air Act and reducing building emissions.
Prime Sponsor – Representative Fitzgibbon (D; 34th District; Seattle)
Current status – Introduced in the House Committee on Appropriations March 2nd and scheduled for a hearing and executive session the same afternoon at 1:30 PM. An amended substitute passed out of committee (at 1:50 AM…); referred to Rules.
Next step would be – Action by the Rules Committee.
Legislative tracking page for the bill.
Comments – There’s a staff bill analysis available.
The substitute’s additional definition of “indirect emissions” for the purposes of the act restricts them to emissions from “fuels” ; it also adds what seems like a vague and inadequate definition of “leakage”. It allows the Department of Ecology to get additional data from producers and distributors if that’s needed to calculate the indirect emissions it’s authorized to regulate. It rewrites the section on credits for biofuels to improve the prose, without changing the substance as far as I can see. It now specifies the energy-intensive and trade-exposed facilities that the Department can treat with special consideration, to the extent needed to prevent leakage, by using a list of industry classification codes. (It also specifies that the special consideration does not extend to their products.) The amendment adds an additional preemption, prohibiting local air authorities, cities and counties from adopting a clean fuels standard or low carbon fuel standard until January 1, 2023, if Ecology adopts a clean fuels standard or low carbon fuel standard by January 1, 2021.
Summary –
The bill responds to the recent Supreme Court decision holding that Ecology didn’t have the statutory authority to regulate fossil fuel production and distribution through the Clean Air Act because that didn’t authorize it to regulate indirect emissions. The bill revises the definitions of emissions to specify both direct and indirect ones, and explicitly authorizes Ecology and local air authorities to use the Act to regulate the emissions from the production and distribution of any product in the state emitting over 25,000 tonnes a year of greenhouse gases, and of all fossil fuels.
It requires Ecology to adopt a rule, taking effect after October 1, 2021, that specifies emission thresholds for regulated sources. It authorizes Ecology to collect fees to cover the administrative costs of the program, to rely on market-based mechanisms including bankable tradeable credits to achieve emission reductions, and to provide special consideration for energy-intensive and trade-exposed industries, but only to the extent necessary to address leakage. Ecology is to provide biofuels with credits that adjust their obligations to take account of the difference between their lifecycle emissions and those of whatever fossil fuels they’re expected to replace. If it regulates direct or indirect emissions sources other than fossil fuels, it has to provide a mechanism for using credits or offsets from forest carbon sequestration in meeting those obligations.
The bill directs the Utilities and Transportation Commission to allow timely recovery of prudent and reasonable compliance costs by utilities.
It would delay implementing the 2018 residential energy code until July 1, 2022, if the Legislature provided policies and funding for existing residential retrofit programs that produced larger greenhouse gas emissions reductions.
It prohibits any local caps, taxes or fees on greenhouse gas emissions, and any local restrictions on natural gas infrastructure in new buildings until 2023.
It would make the new Clean Air Act authority null and void if a more comprehensive program that put a price on greenhouse gas emissions and was forecast to achieve the State’s targets were enacted.