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SB 6058

Facilitating linkage of Washington's carbon market with the California-Quebec carbon market.

2023-2024 Regular Session Introduced by Sam Hunt and 8 co-sponsors

Authorizes linking Washington's carbon market with the California–Quebec system, aligning rules, periods, and instruments to enable cross‑jurisdiction trading.

Effective date Contingent**.
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Bill Summary · SB 6058

Summary — SB 6058 (2024): Facilitating linkage of Washington's carbon market with the California–Quebec market

Status: Chapter 352, 2024 Laws. Governor signed 3/28/2024. Effective date: contingent (see statute). Introduced 1/9/2024. Sponsor: Sen. Nguyen; by request of Dept. of Ecology.

Main purpose

SB 6058 amends Washington’s Climate Commitment Act (CCA) to enable and facilitate interstate linkage between Washington’s cap‑and‑invest carbon market and the California–Quebec cap‑and‑trade system. The bill makes statutory changes to definitions, reporting, program design, and administrative authorities so Washington can harmonize rules and accept compliance instruments from linked jurisdictions.

Key provisions and changes

  • Synchronizing compliance periods: If the Department of Ecology (Ecology) enters a linkage agreement, Ecology must amend its CCA compliance‑period rules as needed to synchronize Washington’s compliance periods with those of linked jurisdiction(s).
  • Electricity importers as covered entities: Importers of unspecified sources of electricity that have any associated greenhouse gas (GHG) emissions — and that were not purchased from a federal power marketing entity — are designated as covered entities subject to CCA compliance obligations.
  • Federal power marketing entities (e.g., Bonneville Power Administration): Establishes a process allowing a federal power marketing entity to voluntarily register as an opt‑in entity with Ecology and assume the CCA compliance obligation for power it markets.
  • Auction and holding limits: Modifies auction purchase limits applicable to covered and opt‑in entities and revises holding limits for general market participants (the bill changes the statutory limits that previously governed how many allowances different participant types may buy or hold). Exact numeric revisions are specified in the bill text.
  • GHG reporting alignment: Amends state GHG reporting provisions under the state Clean Air Act so reporting and rulemaking can be aligned with federal reporting requirements and with jurisdictions with which Washington links its market.
  • Definitions and program language: Updates several statutory definitions in chapter 70A.65 RCW (for example, language governing biofuels definitions and compliance instrument recognition) to improve interoperability with external trading programs and linked jurisdictions.
  • Penalties and administrative clarifications: The bill includes conforming provisions addressing transfers/recognition of external compliance instruments and enforcement; details are in the enacted text.

Who is affected

  • Covered entities under the CCA (fuel suppliers, large facilities, and now certain electricity importers).
  • Federal power marketing entities that may choose to opt in.
  • Utilities, marketers, traders and other market participants who buy, hold, or sell allowances.
  • Dept. of Ecology — given new rulemaking and administrative duties to synchronize compliance periods and implement linkage‑related changes.
  • Entities subject to GHG reporting requirements may see alignment changes.

Procedural / timeline notes

  • The bill passed the Legislature and was signed by the Governor on 3/28/2024; it contains a contingency for its effective date as specified in the statute.
  • Multiple amendments were proposed during House committee consideration (including proposals addressing legislative approval of linkage, transparency of negotiations, third‑party price analysis, and price ceiling limits). Some of those amendment ideas were debated but not all were adopted into the final enacted bill.

For precise legal language, numeric auction or holding limit changes, and the conditional effective date trigger, consult the enacted chapter (Chapter 352, 2024 Laws) and the bill text in RCW chapter 70A.65 as amended.

Compiled from official sources — confirm details with the bill’s official record.

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