Subject of Possible Rule Making: The rule making will adopt new chapter 173-446B WAC, Climate Commitment Act funds reporting. The rule will establish reporting requirements for recipients of cap-and-invest auction revenue so that ecology can complete annual reports to the state legislature, as required by the Climate Commitment Act (RCW 70A.65.300). It will define what, when, and how recipients must report their expenditures to ecology. Additionally, the rule will outline the process to determine whether projects result in greenhouse gas (GHG) emissions reductions. For projects that do, it will outline the process to calculate the quantity of GHG emissions reduced.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule making is required by RCW 70A.65.300(3). The data submitted based on the rule's requirements will allow ecology to produce an annual report to the legislature, as required by RCW 70A.65.300(1). This rule making will also outline the process to determine the GHG emissions reductions resulting from emissions-reducing projects. Information about emissions reductions and cost-benefit ratios will be included in ecology's annual report.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: This rule making will set requirements for recipients of auction revenue. Other state entities that regulate or have interest in this subject are the office of financial management (OFM), the governor's office, the environmental justice council, and the legislature. We plan to coordinate with the regulated agencies through OFM by seeking the input of agency budget directors and other designated staff concerned with climate accounts. We also plan to work with commerce's state efficiency and environmental performance office to seek the input of state agency staff involved in estimating GHG reductions for state agency operations. We will work with the environmental justice council, particularly on the issue of how we report on expenditures in overburdened communities. We are communicating with California air resources board staff who work on similar topics in California to understand the best approaches to developing methodologies and receiving data from agencies.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Harrison Ashby, Department of Ecology, Air Quality Program, P.O. Box 47600, Olympia, WA 98504-7600, phone 360-485-2771, Washington relay service or TTY call 711 or 877-833-6341, email harrison.ashby@ecy.wa.gov, website https://ecology.wa.gov/Regulations-Permits/Laws-rules-rulemaking/Rulemaking/WAC-173-446B, sign up to receive email notices https://public.govdelivery.com/accounts/WAECY/subscriber/new?topic_id=WAECY_285.

Additional comments: Interested parties can stay informed about the rule making and public involvement opportunities as described above. Ecology will extend an offer for government-to-government consultation with tribal governments during each phase of rule development.