WA HB1409

Increases the carbon intensity reduction target for transportation fuels from 20% to 45% below 2017 levels by January 1, 2038, with the Department of Ecology authorized to further adjust to 55% if zero emission vehicle rules are not enforced or emissions reductions are insufficient

Establishes a graduated annual reduction schedule: 0.5% in 2023-2024, 1% in 2025, 5% additional in 2026, 4% additional in 2027, and 3-4% additional each year from 2028-2038

Creates a detailed penalty structure for clean fuels program violations, including up to $10,000 per day for late reports, up to $1,000 per credit/deficit for misreporting, and up to four times credit clearance market price for unretired deficits

Requires the Department of Ecology to publish credit market analysis including prices, trends, trading volumes by fuel type, and in-state biofuel feedstock production data on its website

Removes previous requirements that tied carbon intensity increases to biofuel production facility milestones, replacing them with a simpler condition that at least one new biofuel facility must receive permits after January 1, 2025, before exceeding 20% reduction