On page 2, line 6 of the amendment, after "(1)" strike all material through "(2)" on line 13 and insert "(a) The office of the governor and the department are directed to represent the state's interest in the development of a national program to reduce greenhouse gas emissions. These efforts must protect Washington's interests without influence from any decisions made as part of the western climate initiative, and reflect Washington's manufacturing, hydroelectric, forestry, and agricultural interests.
     (b) The office of the governor and the department may continue to participate and monitor efforts to create a regional cap and trade program with the following guidance:
     (i) Allowances under any proposed cap and trade program may not be auctioned without prior approval of the legislature;
     (ii) Cost containment and market design mechanisms must be included in any system to protect the state's economy from volatile and escalating costs of allowances or offsets and market manipulation;
     (iii) The threshold for regulation will not be reduced below twenty-five thousand metric tons of carbon dioxide equivalents annually;
     (iv) The point of regulation will be imposed on the entity that has control over emissions;
     (v) The point of regulation will be placed on stationary sources within Washington to better enable integration with the federal system;
     (vi) New entrants must be encouraged, but not to the detriment of existing entities and sectors; and
     (vii) Mechanisms and regulations must not place Washington industries at a competitive disadvantage among member states.
     (2) The department is not authorized to issue any new rules implementing any elements of proposals for a regional greenhouse gas reduction strategy or cap and trade policy without prior legislative direction.
     (3)"

     Renumber the remaining subsections consecutively and correct any internal references accordingly.