This bill creates two new state treasury accounts called the climate commitment act operating account and the climate commitment act capital account to receive proceeds from auctions of emissions allowances, and it amends and adds sections to chapter 70A.65 RCW while repealing RCW 70A.65.250, .260, and .270. It changes how auction proceeds are distributed by requiring an initial fiscal‑year deposit ($25 million in FY2028, inflation‑adjusted thereafter) to the operating account and then allocating remaining proceeds among transportation, operating, and capital accounts by specified percentages with special FY2029 rules and caps that redirect excess to the capital account. The text also requires auctions (limited to four per year plus reserves) and parallel future‑vintage auctions, says an allowance is not a property right, sets participant registration and bid guarantee rules, imposes purchase and holding limits, requires independent contractors and financial administrators for auctions, and directs the department to adopt rules to prevent collusion and market manipulation. The bill creates a broad list of authorized uses for account moneys across transportation, tribal assistance, clean water and healthy forest investments, industrial and agricultural decarbonization, building efficiency, clean manufacturing, energy affordability, landfill methane reduction, carbon removal, EV infrastructure, and other programs, and it requires that at least 25 percent of biennial appropriations from the operating and capital accounts be for specified clean water and healthy forest investments. It prohibits funding that would violate tribal treaty rights or cause significant long‑term damage to critical habitat, requires funded projects to meet specified “high labor standards” and maximize access to local workers and diverse businesses, and directs agencies to conduct environmental justice assessments with a legislative goal that at least 35 percent (goal 40%) of investments provide direct, meaningful benefits to vulnerable populations in overburdened communities and that at least 10 percent of investments be for projects supported by an Indian tribe. The act also makes procedural and enforcement changes: it expands reporting and public‑information duties (department reports to the legislature and the environmental justice council on distributions and project outcomes, with specified deadlines), designates certain auction and market‑sensitive records as confidential, revises civil penalty notice, appeal, and collection procedures, and authorizes a range of monetary penalties and administrative remedies for violations of cap‑and‑invest and related credit programs. The bill establishes tribal consultation and preapplication engagement processes (with timelines and dispute resolution), creates a prescribed fire claims pilot fund reimbursing eligible claims up to $2,000,000 per claim (expires June 30, 2033), establishes a forestry riparian easement program for qualifying small forestland owners with valuation and compensation rules, amends tax statutes to provide a state sales tax exemption for zero‑emission buses subject to a $14 million cap and to impose an excise tax on banking or sale of surplus ZEV credits (effective May 20, 2025), and directs various transfers and reporting related to those tax changes. The act takes effect July 1, 2027. Some details are incomplete in the provided text: the specific department named to administer many duties is not identified here, several statutory subsections and definitions are referenced but not included, and one capital‑account subsection and portions of certain provisions are truncated.

If enacted, the bill creates two new state accounts that will collect most auction revenue from the cap‑and‑invest program and changes how that money is split, starting with a $25 million annual front‑deposit to the operating account in fiscal 2028 and then dividing remaining proceeds roughly 73% to transportation, 12% to operating, and 15% to capital with special rules for fiscal 2029 and caps that can redirect funds to the capital account. The law directs that at least 25% of biennial appropriations from those accounts go to clean water and healthy forest projects, authorizes a wide range of spending (tribal grants, low‑income energy aid, electrification, industrial and agricultural decarbonization, landfill and methane work, carbon removal, etc.), caps agency administrative charges (about $25 million per year adjusted for inflation), tightens auction rules and participant controls, requires detailed public reporting on project outcomes and costs per ton of CO2 reduced, and sets environmental justice investment goals (at least 35% of investments to benefit vulnerable people in overburdened communities and at least 10% for tribal‑supported projects). The groups most affected are state budget officials and agencies that will allocate and report on these funds, Indian tribes who gain stronger consultation rights and prioritized funding but can also pause projects pending consultation, and regulated businesses and market participants who will face new auction participation rules, bid guarantees, holding limits, and stiffer penalty exposure. Transit agencies and tribes may get a sales tax exemption for zero‑emission buses, while vehicle manufacturers banking or selling ZEV credits face new excise taxes that raise their costs; electric utilities and other regulated parties could see larger fines and new notification duties. Several implementation details remain unclear from these excerpts—notably which specific state department runs the program, the full list of capital account uses, and some defined terms—so agencies will need further guidance before fully estimating administrative burdens, timing of payments, and exact compliance costs.