This bill amends existing law (RCW 70A.65.260) and adds new sections to chapters 70A.65, 28A.160, and 28A.150 RCW to create and fund a climate commitment account and to provide specific new allocations to school districts. It expands the list of eligible uses for the climate commitment account, requires the account to receive moneys from the climate investment account, and states that funds may be spent only after appropriation and only for projects physically located in Washington. The amendment includes limits on uses (for example, not to violate tribal treaty rights or cause significant long-term damage to critical habitat) and requires investments to produce long-term environmental benefits and increased resilience. The bill requires the Department of Commerce, consulting with the Utilities and Transportation Commission, to calculate a "school utility impact percentage" for each school district by September 1, 2026 and annually thereafter, and report it to the Office of Superintendent of Public Instruction (OSPI). OSPI must allocate additional funding from the climate commitment account to school districts: one allocation equal to each district’s student transportation allocation multiplied by 0.01166 to offset increased fuel costs, and a second allocation equal to one half of a district’s utilities and insurance allocation (under RCW 28A.150.260(8)) multiplied by the district’s school utility impact percentage; these allocations are explicitly not part of the state’s program of basic education. Sections establishing the transportation and utility allocations take effect September 1, 2026. Important referenced definitions and amounts—such as the detailed statutory description of the cap and invest program, the treatment of no‑cost allowances, and the underlying allocation amounts in RCW 28A.160.180 and RCW 28A.150.260(8)—are not included in the extracted text and therefore are not described here.

If enacted, school districts would likely get extra state money aimed at offsetting higher fuel costs for pupil transportation and some increased utility and insurance costs that arise from Washington’s cap-and-invest program. The Department of Commerce (with input from the Utilities and Transportation Commission) must calculate a district-by-district “school utility impact percentage” by September 1, 2026 and each year after, and the Office of Superintendent of Public Instruction would use that percentage and fixed formulas to distribute payments from the climate commitment account starting September 1, 2026. Practically, district budgets could see a new, targeted revenue stream tied to existing transportation and utilities funding lines, but only if the legislature appropriates money from the climate commitment account. How much money districts actually receive is uncertain because the formulas rely on other statutory allocation amounts and on Commerce’s calculation method (including how no-cost allowances are treated), which are not included here. The Department of Commerce, UTC, OSPI, and the Legislature will take on new ongoing responsibilities: Commerce must produce the impact percentage, OSPI must make the allocations, and the Legislature must authorize spending. The amended law also directs significant tribal funding and bars uses that would violate tribal treaty rights or cause long-term ecological harm, so some climate account dollars are explicitly committed and use restrictions could limit what’s available for schools.