"NEW SECTION.  Sec. 1   FINDINGS. The legislature finds that Washington should maintain its leadership on climate change by continuing Washington's participation in the development of any federal or regional programs to reduce greenhouse gas emissions.
     The legislature finds that by continuing its participation in the development of federal and regional programs to reduce greenhouse gas emissions, Washington maximizes its ability to influence and shape those programs so that they may reflect Washington's emissions portfolio, including the state's hydroelectric system, aid Washington's forest resources and agricultural industries, reduce Washington's expenditures on imported fuels, and create a strong economy.
     The legislature further finds that by continuing Washington's participation in the development of federal and regional programs to reduce greenhouse gas emissions, Washington has the opportunity to protect Washington families and small businesses from undue financial impacts arising from the transition to a clean energy future, to protect Washington's economy from disadvantages resulting from competition with industries that do not participate in carbon control efforts, and provide appropriate credit for those businesses that have taken early actions to reduce greenhouse gas emissions.
     The legislature further finds that well-designed climate policies should mitigate any impacts on the cost and affordability of food, housing, energy, transportation, and other routine expenses on low and moderate-income people, and ensure that economic benefits are available to both urban and rural communities, and to traditionally underserved communities.
     The legislature further finds the continued efforts to reduce greenhouse gases in the transportation sector through the continued development of alternative fuels, improved vehicle technologies, and providing choices that reduce overall vehicle miles traveled to be critical steps in creating jobs, fostering economic growth, and reducing our reliance on foreign petroleum-based transportation fuels.

NEW SECTION.  Sec. 2   NATIONAL AND REGIONAL GREENHOUSE GAS REDUCTION PROGRAMS. (1) The office of the governor and the department are directed to represent the state's interests in the development of a national program to reduce greenhouse gas emissions. As part of this effort, the department is directed to continue to participate in the western climate initiative to develop a regional program to reduce greenhouse gas emissions. This regional program must be used to influence the national program to reduce greenhouse gas emissions.
     (2) In order to provide needed information to the legislature, government agencies, and those persons who are responsible for significant emissions of greenhouse gases so that they may effectively plan for the long-term emissions reductions under RCW 70.235.020, the department shall develop:
     (a) Its best estimate of emissions levels in 2012 for persons that the department reasonably believes emit twenty-five thousand metric tons of carbon dioxide equivalent or greater each year;
     (b) The trajectory of emissions reductions necessary to meet the 2020 requirement of reducing the state's greenhouse gas emissions to 1990 levels; and
     (c) An assessment of the state's emissions sources and sectors where reductions in the state's greenhouse gas emissions cannot be realized and the sectors are necessary to ensure the economic viability of the state.
     (3) The department shall develop the estimated 2012 emissions levels and the 2020 reduction trajectories in consultation with business and other interested stakeholders by December 15, 2009. The reduction trajectories must reflect the department's best estimate of each person's proportionate share of the 2020 reductions and must consider each person's use of industry best practices and of fuels that are either carbon neutral or that do not emit greenhouse gases. Consideration may be given to industries whose processes are inherently energy intensive.
     (4) The department shall provide each person with its estimate of the person's 2012 emissions levels and the 2020 reduction trajectory as soon as they are available, but no later than December 15, 2009. Each person or groups of persons representing a sector of Washington's economy may recommend strategies or actions to the department that they believe would achieve the needed reductions. The recommendations must be provided to the department by June 15, 2010.
     (5) The department shall provide a report to the legislature by December 31, 2010, that includes the 2012 emissions estimates, the 2020 reduction trajectories, and the strategies and actions, including complementary policies that collectively will achieve the state's 2020 emissions reduction in RCW 70.235.020. The report must also include a description of any additional authority that is needed to implement the identified strategies or actions.
     (6) For purposes of this section, emissions of carbon dioxide from industrial combustion of biomass in the form of fuel wood, wood waste, wood byproducts, including pulping liquor, and wood residuals may not be considered a greenhouse gas as long as the region's silvicultural sequestration capacity is maintained or increased.

NEW SECTION.  Sec. 3   ACCOUNTABILITY. The governor shall designate a currently employed full-time equivalent person as the single point of accountability for all energy and climate change initiatives within state agencies. All agencies, councils, or work groups with energy or climate change initiatives must coordinate with this designee. This position must be funded from current full-time equivalent allocations without increasing budgets or staffing levels. If duties must be shifted in the agency, they must be shifted to current full-time equivalent allocations.

NEW SECTION.  Sec. 4   FORESTRY OFFSET POLICY. The department, in consultation with the department of natural resources and the forest carbon working group, shall develop recommendations for the state's policy for forestry offset projects within Washington. The agencies and the forest carbon working group must use the 2008 report of the forest carbon working group as the starting point in developing the policy. The final policy must be submitted to the legislature by December 31, 2010. The policy recommendations must address:
     (1) Specific standards and guidelines that will support carbon accounting in managed forests participating in an offset program;
     (2) Recommendations on how any carbon that is reduced or sequestered by a forestry offset project may be eligible for an offset credit available to coal-fired power plants under section 7 of this act, and within regional and federal climate policies;
     (3) Recognition of management activities that increase carbon stocks including, but not limited to, thinning, lengthening rotations, increased retention of trees after harvest, fertilization, genetics, timber stand improvement, fire management, and specific site class and productivity of a managed forest;
     (4) Specific standards and guidelines to support wood products accounting, recognizing that carbon is stored in products after trees are harvested, including the use of the one hundred year method which estimates the amount of carbon stored in the wood products that are projected to remain in use over one hundred years;
     (5) Guidelines on how transfer of development rights or on-site cluster development projects may be used to create forestry offset projects;
     (6) Guidelines on how forestry offset projects and forestry financial incentive programs can work together so that Washington's forest landowners will not be disadvantaged in comparison to other jurisdictions participating in a national or regional cap and trade program;
     (7) How to verify or certify carbon stocks in a manner that will not be administratively burdensome; and
     (8) Specific standards for how landowners who are no longer able or willing to meet their offset obligations can opt out of the program. The specific standards must require the landowner to procure other allowances or offsets equal to the offsets issued under the management plan for any offsets they have sold and surrender those offsets and any unsold offsets to the state.

NEW SECTION.  Sec. 5   FINANCIAL INCENTIVES FOR FORESTRY. The department of ecology, in consultation with the department of natural resources and the forest carbon working group, shall develop and deliver to the legislature by December 31, 2010, recommendations for financial incentives for forestry and forest products that will recognize and encourage forest land management and use of forest products that will maintain or increase carbon sequestration, including, but not limited to:
     (1) Thinning, lengthening of rotations, increased retention of trees at harvest, fertilization, genetics, timber stand improvement, and fire management;
     (2) Production of wood products while maintaining or increasing carbon stocks on the ground; and
     (3) Retention of high carbon stocks where there is no obligation to retain such stocks.

NEW SECTION.  Sec. 6   AGRICULTURAL OFFSET POLICY. The department, in consultation with Washington State University, the department of agriculture, and the agriculture carbon working group shall develop recommendations for agricultural offset projects within Washington. The agencies and the agricultural carbon working group must use the 2008 report of the agricultural carbon working group as the starting point in developing the policy. The final recommendations of the agriculture carbon working group must be submitted to the legislature by December 31, 2010. The policy recommendations must address:
     (1) A process and timeline to survey, catalog, and map Washington soils in a manner that describes the carbon soil sequestration level of the soils;
     (2) Activities that would increase carbon sequestration in soils and therefore potentially qualify as offset projects; and
     (3) Recommendations on how any carbon that is reduced or sequestered by an agricultural offset project may be eligible for an offset credit available to coal-fired power plants under section 7 of this act, and within regional and federal climate policies.

NEW SECTION.  Sec. 7   A new section is added to chapter 70.94 RCW to read as follows:
     STANDARDS FOR COAL-FIRED POWER PLANTS. (1) This section only applies to coal-fired power plants within Washington that burn over one million tons of coal per year.
     (2) By 2015, coal-fired power plants must reduce emissions of greenhouse gases by one million metric tons unless the state is participating in a national or regional cap and trade program by or during 2012 that covers the emissions from these plants.
     (3) The department shall negotiate and implement a compliance agreement with the coal-fired power plants covered by this section that describes how the required emissions reduction will be accomplished. The compliance agreement may include, but is not limited to, measures such as the substitution of biomass and other renewable resources for more carbon-intensive fuels as well as the limited use of offset projects. No more than forty-nine percent of the total emissions reductions from the coal-fired power plants covered by this section may be satisfied with offsets. The department shall report to the legislature on the status and content of the compliance agreement by December 31, 2011.
     (4)(a) If an order or approval is required as a result of the reductions required under subsection (2) of this section, the department shall issue the order or approval within sixty days of receipt of a complete application that demonstrates to the department's satisfaction that the coal-fired power plant will achieve the emissions reduction required by this section.
     (b) Within thirty days after issuing an order or approval, the department must submit to the legislature notice of the issuance of an order or approval and the findings that led to the issuance of the order or approval. The department must also post the notice of the issuance of an order or approval and the findings that led to the issuance of the order or approval on their department web site.
     (5) If a coal-fired power plant subject to this section has begun to reduce its emissions as a result of this requirement and the state subsequently participates in a national or regional cap and trade program, the state shall advocate for appropriate credit to be given for these early reductions.
     (6) If the compliance agreement under this section requires substitution of biomass or other renewable resources for more carbon intensive fuels, the substitution does not constitute an upgrade as defined in RCW 80.80.010.

NEW SECTION.  Sec. 8   A new section is added to chapter 47.38 RCW to read as follows:
     ALTERNATIVE FUELS CORRIDOR PILOT. (1) As a necessary and desirable step to encourage public and private investment in both electric vehicle infrastructure and alternative fuel distribution infrastructure, the legislature authorizes an alternative fuels corridor pilot project capable of supporting electric vehicle charging and battery exchange technologies, and providing alternative fuel distribution sites.
     (2) To the extent permitted under federal programs, rules, or law, the department of transportation shall pursue partnership agreements with other public and private entities for the use of land and facilities along state routes and within interstate highway rights-of-way for an alternative fuels corridor pilot project. The department of transportation shall strive to have the partnership agreement in place by June 30, 2010. At a minimum, the pilot project must:
     (a) Limit renewable fuel and vehicle technology offerings to those with a forecasted demand over the next fifteen years and approved by the department of transportation;
     (b) Ensure that a pilot project site does not compete with existing retail businesses in the same geographic area for the provision of the same refueling services, recharging technologies, or other retail commercial activities;
     (c) Provide existing truck stop operators and retail truck refueling businesses with an absolute right of first refusal over the offering of refueling and recharging services to class six trucks with a maximum gross vehicle weight of twenty-six thousand pounds within the same geographic area identified for a possible pilot project site;
     (d) Reach agreement with the department of services for the blind ensuring that any activities at host sites do not materially affect the revenues forecasted from their vending operations at each site;
     (e) Regulate the internal rate of return from the partnership, including provisions to reduce or eliminate the level of state support once the partnership attains economic self-sufficiency;
     (f) Be limited to not more than five locations on state-owned land within federal interstate rights-of-way or state highway rights-of-way in Washington; and
     (g) Be limited in duration to a term of years reasonably necessary for the partnership to recover the cost of capital investments, plus the regulated internal rate of return.
     (3) The department of transportation is not responsible for providing capital equipment or operating refueling or recharging services. The department of transportation must provide periodic status reports on the pilot project to the office of financial management and the relevant standing committees of the legislature at least every biennium.

NEW SECTION.  Sec. 9   A new section is added to chapter 43.19 RCW to read as follows:
     ELECTRIFICATION OF THE WEST COAST INTERSTATE. (1) The office of the governor, in consultation with the department of community, trade, and economic development, the department of ecology, the department of general administration, the department of transportation, and Washington State University, shall develop a project for the electrification of the west coast interstate and associated metropolitan centers.
     (2) The project should be developed in collaboration with representatives of Oregon and California, the federal government, and the private sector, as appropriate.
     (3) The state shall seek federal funds for purchasing electric vehicles and the installation of public infrastructure for electric and other high-efficiency, zero or low-carbon vehicles. The department of ecology shall also seek funds to expand the network of truck stop electrification facilities and port electrification facilities.

Sec. 10   RCW 47.80.030 and 2005 c 328 s 2 are each amended to read as follows:
     (1) Each regional transportation planning organization shall develop in cooperation with the department of transportation, providers of public transportation and high capacity transportation, ports, and local governments within the region, adopt, and periodically update a regional transportation plan that:
     (a) Is based on a least cost planning methodology that identifies the most cost-effective facilities, services, and programs;
     (b) Identifies existing or planned transportation facilities, services, and programs, including but not limited to major roadways including state highways and regional arterials, transit and nonmotorized services and facilities, multimodal and intermodal facilities, marine ports and airports, railroads, and noncapital programs including transportation demand management that should function as an integrated regional transportation system, giving emphasis to those facilities, services, and programs that exhibit one or more of the following characteristics:
     (i) Crosses member county lines;
     (ii) Is or will be used by a significant number of people who live or work outside the county in which the facility, service, or project is located;
     (iii) Significant impacts are expected to be felt in more than one county;
     (iv) Potentially adverse impacts of the facility, service, program, or project can be better avoided or mitigated through adherence to regional policies;
     (v) Transportation needs addressed by a project have been identified by the regional transportation planning process and the remedy is deemed to have regional significance; and
     (vi) Provides for system continuity;
     (c) Establishes level of service standards for state highways and state ferry routes, with the exception of transportation facilities of statewide significance as defined in RCW 47.06.140. These regionally established level of service standards for state highways and state ferries shall be developed jointly with the department of transportation, to encourage consistency across jurisdictions. In establishing level of service standards for state highways and state ferries, consideration shall be given for the necessary balance between providing for the free interjurisdictional movement of people and goods and the needs of local commuters using state facilities;
     (d) Includes a financial plan demonstrating how the regional transportation plan can be implemented, indicating resources from public and private sources that are reasonably expected to be made available to carry out the plan, and recommending any innovative financing techniques to finance needed facilities, services, and programs;
     (e) Assesses regional development patterns, capital investment and other measures necessary to:
     (i) Ensure the preservation of the existing regional transportation system, including requirements for operational improvements, resurfacing, restoration, and rehabilitation of existing and future major roadways, as well as operations, maintenance, modernization, and rehabilitation of existing and future transit, railroad systems and corridors, and nonmotorized facilities; and
     (ii) Make the most efficient use of existing transportation facilities to relieve vehicular congestion and maximize the mobility of people and goods;
     (f) Sets forth a proposed regional transportation approach, including capital investments, service improvements, programs, and transportation demand management measures to guide the development of the integrated, multimodal regional transportation system. For regional growth centers, the approach must address transportation concurrency strategies required under RCW 36.70A.070 and include a measurement of vehicle level of service for off-peak periods and total multimodal capacity for peak periods; and
     (g) Where appropriate, sets forth the relationship of high capacity transportation providers and other public transit providers with regard to responsibility for, and the coordination between, services and facilities.
     (2) Regional transportation planning organizations encompassing at least one county planning under RCW 36.70A.040 with a population greater than two hundred forty-five thousand must adopt a regional transportation plan for those counties that implement the goals to reduce annual per capita vehicle miles traveled under RCW 47.01.440.
     (3) The organization shall review the regional transportation plan biennially for currency and forward the adopted plan along with documentation of the biennial review to the state department of transportation.
     (((3))) (4) All transportation projects, programs, and transportation demand management measures within the region that have an impact upon regional facilities or services must be consistent with the plan and with the adopted regional growth and transportation strategies.
     (5) In satisfying the requirements of subsections (2) and (3) of this section, the organization shall review and document consistency with locally adopted comprehensive plans of all jurisdictions fully planning under chapter 36.70A RCW within the boundary of the organization and shall identify any potential conflicts between the locally adopted comprehensive plans and regional efforts to reduce per capita vehicle miles.

Sec. 11   RCW 43.19.648 and 2007 c 348 s 202 are each amended to read as follows:
     AGGREGATE PURCHASING OF ELECTRIC VEHICLES. (1) Effective June 1, 2015, all state agencies and local government subdivisions of the state, to the extent determined practicable by the rules adopted by the department of community, trade, and economic development pursuant to RCW 43.325.080, are required to satisfy one hundred percent of their fuel usage for operating publicly owned vessels, vehicles, and construction equipment from electricity or biofuel.
     (2) The department of general administration is directed to work with California, Oregon, other states, federal agencies, local governments, and private fleet owners to encourage aggregate purchasing of electric vehicles to the maximum extent possible.
     (3) Except for cars owned or operated by the Washington state patrol, when tires on vehicles in the state's motor vehicle fleet are replaced, they must be replaced with tires that have the same or better rolling resistance as the original tires.

NEW SECTION.  Sec. 12   TRIBAL GOVERNMENTS. (1) The department must consult with tribal governments upon request on elements of the state's climate change program that may impact tribal governments, such as their voluntary development of offset projects.
     (2) Nothing in this chapter is intended to expand state authority over Indian country as that term is defined in 18 U.S.C. Sec. 1151.

NEW SECTION.  Sec. 13   Captions used in this act are not any part of the law.

NEW SECTION.  Sec. 14   Sections 1 through 4 and 6 of this act are each added to chapter 70.235 RCW.

NEW SECTION.  Sec. 15   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 16   If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2009, in the omnibus appropriations act, this act is null and void."