BILL REQ. #:  H-3656.3 

Read first time 01/16/2006.   Referred to Committee on Natural Resources, Ecology & Parks.

     AN ACT Relating to the creation of the forest carbon credits study panel; creating new sections; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that:
     (1) There is a growing interest in the tracking, registering, and reduction of greenhouse gas emissions at both the state and federal levels of government. This growing interest is evidenced by Washington's creation of the center for climate and rural energy development at Washington State University in 2002, as well as the 2003 west coast governor's global warming initiative launched by the governors of Washington, Oregon, and California.
     (2) Although regulatory regimes will likely be necessary to create a framework for greenhouse gas reductions, market mechanisms will play an integral role in any plan to reduce greenhouse gas emissions in the next century. Emission credit trading systems provide greenhouse gas emitting industries with an efficient market mechanism to comply with greenhouse gas regulations. Activities that store or trap carbon, such as growing forests, should be recognized in emission credit trading systems.
     (3) Forests and growing trees act as a sink for carbon by removing carbon from the atmosphere through photosynthesis and storing the carbon on a long-term basis in the biomass of the tree.
     (4) The high productivity of northwest forests provide the capacity to sequester large stocks of carbon as compared to forests in other less productive parts of the country. Managing healthy forests in longer rotations also provides greater stores of carbon than in young trees.
     (5) The owners of forest lands in the northwest have the opportunity to participate in carbon emissions trading markets by making voluntary, long-term commitments to managing their forests for optimal carbon sequestration.
     (6) An economic reward to the landowner can be achieved, in part, by permitting Washington forest owners to earn a tradable carbon credit that can be exchanged on the state, national, and international level when the landowner commits to forest management practices that enhances carbon sequestration.

NEW SECTION.  Sec. 2   (1) The forest carbon credits study panel is created to study opportunities available to the state of Washington to develop a robust carbon credit trading market for owners of forest land.
     (2) The study panel consists of twelve members as follows:
     (a) One representative of the governor's office, appointed by the governor;
     (b) Two representatives of conservation or environmental groups, appointed by the governor;
     (c) Two representatives of industries or businesses that produce carbon emissions within the state of Washington, appointed by the governor;
     (d) One representative of owners of small private forest lands, appointed by the governor;
     (e) One representative of owners of large or industrial private forest lands, appointed by the governor;
     (f) One representative of the department of natural resources, appointed by the commissioner of public lands;
     (g) One representative of the department of ecology, appointed by the director of the department of ecology;
     (h) One representative of the department of fish and wildlife, appointed by the director of the department of fish and wildlife;
     (i) One representative of the department of revenue, appointed by the director of the department of revenue; and
     (j) One representative of the department of community, trade, and economic development, appointed by the director of the department of community, trade, and economic development.
     (3) The study panel shall study and make recommendations on the following topics:
     (a) The existence or potential for development of sufficient regulatory basis for a carbon trading market that can be accessed by state forest landowners;
     (b) A definition of the market to which state forest landowners could access in selling credits;
     (c) The benefits and drawbacks of existing models in other states as applied to Washington;
     (d) Whether the implementation of a consistent protocol in all western states for the accounting of carbon sequestration capacity value will enhance carbon trading for the owners of forest lands;
     (e) What steps are necessary to create carbon credits and implement a trading market; and
     (f) Other topics decided by the study panel as necessary to explore in order to meet the charge of the study panel.
     (4) The study panel may, as necessary and as funding allows, contract with the University of Washington's school of forestry, Washington State University's center for climate and rural energy development, or other suitable institutions to obtain technical expertise on relevant forestry and economic issues pertaining to the establishment of a forest carbon credit and trading system.
     (5) Each member of the study panel shall serve without compensation, but may be reimbursed for travel expenses as authorized in RCW 43.03.050 and 43.03.060.
     (6) Staff support for the study panel shall be provided by the department of community, trade, and economic development and the department of natural resources.
     (7) The findings of the study panel, along with draft legislation developed by the study panel, shall be reported to the appropriate standing committees of the legislature by January 2, 2007.

NEW SECTION.  Sec. 3   This act expires July 31, 2007.