WA HB1856

Municipal gas utilities with greenhouse gas emissions under 27,000 metric tons of CO2 equivalent in any year prior to 2022 may elect an alternative emission reduction pathway instead of remaining covered entities under the Climate Commitment Act

Utilities choosing this pathway must submit written notice and a plan to the Department of Ecology by September 1, 2025, and reduce emissions below 22,500 metric tons of CO2 equivalent by 2030 and maintain that level thereafter

The plan must demonstrate targeted spending on emission reduction activities equal to or exceeding what would have been spent on compliance under the standard program through 2030

Utilities failing to meet the 2030 emissions target revert to covered entity status for the third compliance period and must submit penalty compliance instruments for each ton of uncovered emissions from 2026-2030

The Department of Ecology must adopt emergency rules to adjust the program's allowance budget for 2026 and beyond if a utility elects the alternative pathway