Engrossed Second Substitute House Bill 2215 (passed both chambers March 12, 2026) amends the Climate Commitment Act framework in multiple RCW sections, adds a new section to chapter 39.26 RCW, and takes effect immediately as an emergency measure. The bill revises which persons and facilities are “covered entities” for program compliance, establishes timing for when newly covered sources must begin transferring allowances, and directs the Department of Ecology to adopt rules and methodologies (including an October 1, 2026 deadline for a methodology addressing imported electricity in a centralized market, developed in consultation with linked jurisdictions, the Department of Commerce, and the Utilities and Transportation Commission). The bill makes procedural and substantive changes to reporting, verification, registration, and market participation. It requires registration of covered entities and allows opt-in entities and general market participants with specified rights and limits; it establishes a secure electronic tracking system with separate nontransferable compliance accounts and tradable holding accounts. It sets reporting deadlines (annual reports due by March 31 or June 1 for electric power entities), requires verification at minimum for reporters with emissions at or above 25,000 metric tons CO2e, and authorizes the department to assign emissions levels if required reports or verifications are not submitted. It also lists multiple exemptions from coverage (including specified aviation and watercraft fuels, certain coal-fired generation, CO2 from biomass, certain agricultural fuel uses with phased changes beginning January 1, 2030, national security facilities, certain landfill emissions, and lubricants beginning January 1, 2027) and directs life-cycle analysis procedures for lead permitting agencies under chapter 43.21C RCW. The bill changes enforcement procedures and penalties and adds procurement and preemption provisions. It requires entities that fail to submit sufficient compliance instruments to submit a penalty equal to four allowances for each missing instrument within six months, authorizes monetary penalties up to $10,000 per day per violation (and up to $50,000 per day for specific violations cited in the bill), allows reduction of penalty amounts until linkage or the end of the first compliance period, and makes orders and penalties appealable to the Pollution Control Hearings Board. Beginning January 1, 2027, sellers of gasoline, diesel, biodiesel, or propane are eligible for state or municipal contracts only if they are registered as covered or opt-in entities or can document fuel purchases from such registered entities. The bill also preempts chapter 173-442 WAC and directs its repeal. Important details are missing from the extracted text: several defined terms, the exact numeric threshold referenced in one subsection, the full text of the amended RCW sections cited, and completion of truncated provisions, so some operational specifics cannot be determined from these excerpts alone.

If enacted, more fuel suppliers, electricity importers, refineries, rail operators, waste-to-energy operators and some facility owners will face regular greenhouse gas reporting, verification, registration, and allowance obligations once they exceed the stated thresholds (commonly 25,000 metric tons CO2e, with a 500-ton rule for certain new small sellers), and larger reporters must verify emissions. Those entities will likely see new ongoing costs for monitoring, verification, fees, and buying or holding compliance allowances, and they face stepped enforcement: if they miss allowance transfers they must surrender four penalty allowances for each missing instrument within six months and may also face monetary penalties up to $10,000 per day (and up to $50,000 per day for specified violations). Sellers of gasoline, diesel, biodiesel, or propane who want state or municipal contracts after January 1, 2027 must be registered as covered or opt-in entities or document that their fuel came from such an entity, which creates a practical barrier to doing business with the state for unregistered sellers. The Department of Ecology will need to adopt rules, run a public tracking system, create an electricity-import methodology by October 1, 2026 in consultation with linked jurisdictions, and coordinate with EFSEC, Commerce, and the Utilities and Transportation Commission, shifting administrative workload and creating compliance obligations for entities and new public disclosure of holdings and affiliations. Several important details are missing from the provided text—full definitions for terms like “first jurisdictional deliverer,” exact timing for some coverage start dates, and the complete changes to related RCWs—so the precise timing and scope of who becomes covered and when, and some fee and threshold mechanics, remain uncertain.