Washington’s Cap-and-Trade Regulation

In October 2022, the Washington State Dept. of Ecology finalized greenhouse cap-and-trade program regulations. The regulations were promulgated in furtherance of the state’s 2021 Climate Commitment Act. Washington seeks to align its market with California and Quebec’s, and may eventually link the two programs.

Over time, Washington’s market will cover 75% of the state’s largest emitters of carbon dioxide, those releasing more than 25,000 metric tons of CO2 equivalent per year. Electric and gas utilities and fuel suppliers will be covered by the program starting in 2023. Washington’s program also will require air pollution monitoring to ensure air quality improvements, and avoid CO2 equivalent offsets polluting marginalized communities.