WA HB2537

Amends RCW 70A.65.110 to update the reference date for North American Industry Classification System codes from an unspecified date to January 1, 2026, for determining emissions-intensive, trade-exposed (EITE) facility eligibility for no-cost allowances

Requires the Department of Ecology to provide recommendations by December 1, 2026, for allowance schedules for EITE facilities from January 1, 2035 through January 1, 2050, including methods for annual reductions aligned with state emissions limits

Establishes new reporting requirements for EITE facilities starting March 31, 2028, including detailed emissions breakdowns by heat temperature category (low, medium, high) and biennial greenhouse gas reduction plans verified by independent third parties

Creates a framework for facilities to receive additional no-cost allowances if production increases above baseline, specifically for aerospace manufacturing facilities (NAICS code 3364) using mass-based baselines

Provides a fallback provision: if the legislature does not adopt a new allowance schedule by December 1, 2027, EITE facilities continue receiving allowances at the 2031-2034 levels (94% of mass-based baseline or adjusted carbon intensity benchmark)