Signed by Governor Jay Inslee

Vote Smart's Synopsis:

Vote to pass a bill that reduces carbon emissions by limiting the carbon intensity of transportation fuels.

Highlights:

• Defines "carbon intensity" as the quantity of life-cycle greenhouse gas emissions, per unit of fuel energy, expressed in grams of carbon dioxide equivalent per megajoule (gCO2e/MJ) (Sec. 2-2).

• Requires the Department of Ecology to adopt rules that establish standards that reduce carbon intensity in transportation fuels used in Washington. The standards established by the rules must be based on the carbon intensity of gasoline and gasoline substitutes and the carbon intensity of diesel and diesel substitutes (Sec 3-1).

• Exempts the following fuels from rules imposed by the Department of Ecology (Sec. 5-1):

• Fuels used in volumes below thresholds adopted by the department;

• Fuels used for the propulsion of all aircraft, vessels, and railroad locomotives; and

• Fuels used for the operation of military tactical vehicles and tactical support equipment.

• Authorizes the Department of Ecology to adopt rules that are harmonized with the regulatory standards, exemptions, reporting obligations, and other clean fuels program compliance requirements of other states that (Sec. 7-1):

• Have adopted low carbon fuel standards or similar greenhouse gas emissions requirements applicable specifically to transportation fuels;

• Supply, or have the potential to supply, significant quantities of transportation fuel to Washington markets; or

• To which Washington supplies, or has the potential to supply, significant quantities of transportation fuel.

• Establishes producers, importers, distributors, users, and retailers of transportation fuels that are eligible to generate credits must register with the department if they elect to participate in the clean fuels program (Sec. 8.b).

• Requires 50% of the revenues generated by an electric utility from credits earned from the electricity supplied to retail customers by an electric utility under the clean fuels program be expended by the electric utility on transportation electrification projects, which includes projects to support the production and provision of renewable hydrogen as a transportation fuel or used in the production of transportation fuel (Sec. 9).

• Requires the fuel supply forecast for each upcoming compliance period includes, but is not limited to, the following (Sec. 11-3):

• An estimate of the volume of each transportation fuel available in Washington;

• An estimate of the total banked credits and deficits from previous compliance periods; and

• An estimate of the number of credits needed to meet the applicable clean fuels program requirements during the forecasted compliance period.

• Specifies the Department of Ecology may authorize a person, including an agency of this or another state, an employer, a private driver training facility, or other private institution, or a department, agency, or instrumentality of local government, to administer the skills examination specified by this section under the following conditions (Sec. 17.c):

• The examination is the same which would otherwise be administered by the state;

• The third-party has agreed with the state that complies with the requirements of 49 C.F.R. Sec. 383.75; and

• The director has adopted rules as to the third-party testing program and the development and justification for fees charged by any third party.

Full Bill Text