This bill creates a new chapter in Title 79 RCW and authorizes the Department of Natural Resources to enter long-term payment-for-ecosystem-service contracts (up to 125 years) and to offer ecosystem service and carbon credits in compliance or voluntary marketplaces. It defines key terms (for example, carbon credit, ecosystem service credit, ecosystem service project developer and broker) and authorizes the department to contract by public auction or direct negotiation subject to board rules, require a published notice of intent to negotiate within 90 days before negotiations begin, and deposit proceeds into the appropriate state treasury account. The Board of Natural Resources must approve contract terms and set a minimum payment (valid for 180 days or longer by resolution), and where a board minimum exists the department may set the final payment based on current market prices. The bill amends existing laws governing state forestlands and state-owned aquatic lands to add “ecosystem services” as a contractable or salable resource, and changes revenue distribution rules. For state forestlands acquired under RCW 79.22.040, up to 25 percent (as determined by the board) of proceeds may be returned to the forest development account for administration, reforestation, and protection (the board may raise that limit to 27 percent during specified biennia); remaining balances are paid to counties with special land-pool and proration rules. For state forestlands acquired under RCW 79.22.010, proceeds are split 50/50 between the forest development account and distributions prorated to the state general fund (for public schools) and county taxing districts. The act also amends RCW 79.105.150 to require moneys from sale/lease of aquatic lands, sale of valuable materials from aquatic lands, and sale of ecosystem services to be deposited in the aquatic lands enhancement account and used for specified enhancement programs. The bill reenacts and amends RCW 79.22.050 to clarify that state forestland is reserved from sale but valuable materials or ecosystem services may be sold or the land leased if the department finds it in the state’s best interest. The act includes administrative timing and payment mechanics: the department must certify county distribution amounts to the state treasurer within seven working days of receipt and the state treasurer must distribute funds to counties four times per month with no more than ten days between payments; counties under 16,000 population have special indebtedness application rules. Affected entities named include the Department of Natural Resources, the Board of Natural Resources, the state treasurer, counties, school districts, ecosystem service developers and brokers, and ecosystem service marketplaces. Some provisions and amendment texts referenced (including full text of sections 1–4 creating the new chapter, the amended texts of RCW 79.64.110, RCW 79.105.150, and the reenacted RCW 79.22.050, and the full definition of “valuable materials”) are not included in the extracted facts, so certain implementation details and precise statutory language are not available here.

If enacted, the Department of Natural Resources can enter long-term (up to 125-year) contracts and sell standardized ecosystem service credits from state forestlands and aquatic lands, using auctions, direct negotiation, or private developers/brokers, and must publish notice before negotiating. Money from those sales will flow into existing state accounts: for many state forestlands a portion (typically up to 25%, or up to 27% in specified biennia) can be kept for forest development, with the remainder paid to the county where the land sits (and special rules for land-pool counties); for other forestlands the split is 50/50 between the forest development account and prorated school/county distributions; proceeds from aquatic lands sales go to the aquatic lands enhancement account. Practically, this creates a new revenue stream and new administrative duties for DNR, the Board of Natural Resources, and the state treasurer (including quick certification and more frequent county payments), gives project developers and brokers new business opportunities, and may lock in long-term land commitments that limit other uses of public lands; actual revenue and payments will vary with market prices, the board’s minimum payment settings, and details not included here (several amended sections and implementation rules are missing from the provided text).