WA HB1975

Price ceiling for carbon allowances set at $80 for calendar years 2026 and 2027, with annual increases tied to the reserve auction floor price; Department of Ecology may adjust the ceiling to facilitate linkage agreements with other jurisdictions

Department of Ecology required to provide ongoing analysis and forecasts of compliance instrument markets, including prices, supply/demand trends, and market participant activity

Economic modeling results must be posted by December 31, 2026, and updated every two years thereafter, including estimates of program benefits, compliance costs, and social cost of carbon

Allowance price containment reserve expanded to 2-5% of allowance budgets from 2027-2040, with all reserve allowances through 2040 made available during the second compliance period to contain prices before linkage with other jurisdictions

Department authorized to use emergency rulemaking to adjust emissions reporting deadlines and compliance timelines if third-party data collection (such as from EPA) becomes infeasible, ensuring program remains implementable for linkage agreements