BILL REQ. #:  H-0226.1 

Read first time 01/15/2007.   Referred to Committee on Agriculture & Natural Resources.

     AN ACT Relating to reducing statewide greenhouse gas emissions; amending RCW 70.94.030; and adding new sections to chapter 70.94 RCW.

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

Sec. 1   RCW 70.94.030 and 2005 c 197 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Air contaminant" means dust, fumes, mist, smoke, other particulate matter, vapor, gas, odorous substance, or any combination thereof.
     (2) "Air pollution" is presence in the outdoor atmosphere of one or more air contaminants in sufficient quantities and of such characteristics and duration as is, or is likely to be, injurious to human health, plant or animal life, or property, or which unreasonably interfere with enjoyment of life and property. For the purpose of this chapter, air pollution shall not include air contaminants emitted in compliance with chapter 17.21 RCW.
     (3) "Air quality standard" means an established concentration, exposure time, and frequency of occurrence of an air contaminant or multiple contaminants in the ambient air which shall not be exceeded.
     (4) "Ambient air" means the surrounding outside air.
     (5) "Authority" means any air pollution control agency whose jurisdictional boundaries are coextensive with the boundaries of one or more counties.
     (6) "Best available control technology" (BACT) means an emission limitation based on the maximum degree of reduction for each air pollutant subject to regulation under this chapter emitted from or that results from any new or modified stationary source, that the permitting authority, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such a source or modification through application of production processes and available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment or innovative fuel combustion techniques for control of each such a pollutant. In no event shall application of "best available control technology" result in emissions of any pollutants that will exceed the emissions allowed by any applicable standard under 40 C.F.R. Part 60 and Part 61, as they exist on July 25, 1993, or their later enactments as adopted by reference by the director by rule. Emissions from any source utilizing clean fuels, or any other means, to comply with this subsection shall not be allowed to increase above levels that would have been required under the definition of BACT as it existed prior to enactment of the federal clean air act amendments of 1990.
     (7) "Best available retrofit technology" (BART) means an emission limitation based on the degree of reduction achievable through the application of the best system of continuous emission reduction for each pollutant that is emitted by an existing stationary facility. The emission limitation must be established, on a case-by-case basis, taking into consideration the technology available, the costs of compliance, the energy and nonair quality environmental impacts of compliance, any pollution control equipment in use or in existence at the source, the remaining useful life of the source, and the degree of improvement in visibility that might reasonably be anticipated to result from the use of the technology.
     (8) "Board" means the board of directors of an authority.
     (9) "Carbon dioxide equivalent" has the same meaning assigned to that term in RCW 80.70.010.
     (10) "Control officer" means the air pollution control officer of any authority.
     (((10))) (11) "Department" or "ecology" means the department of ecology.
     (((11))) (12) "Emission" means a release of air contaminants into the ambient air.
     (((12))) (13) "Emission standard" and "emission limitation" mean a requirement established under the federal clean air act or this chapter that limits the quantity, rate, or concentration of emissions of air contaminants on a continuous basis, including any requirement relating to the operation or maintenance of a source to assure continuous emission reduction, and any design, equipment, work practice, or operational standard adopted under the federal clean air act or this chapter.
     (((13))) (14) "Fine particulate" means particulates with a diameter of two and one-half microns and smaller.
     (((14))) (15) "Greenhouse gas" or "greenhouse gases" includes the following gases: Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexaflouride.
     (16) "Greenhouse gas emissions level" means the total annual emissions of greenhouse gases in the state expressed in tons of carbon dioxide equivalents. The term includes all emissions of greenhouse gases from the generation of electricity delivered to and consumed in Washington regardless of the state in which the electricity was originally generated.
     (17) "Greenhouse gas emission reduction measures" means programs, measures, standards, and allowable alternative compliance mechanisms applicable to sources or categories of sources that are designed to reduce greenhouse gas emissions.
     (18) "Lowest achievable emission rate" (LAER) means for any source that rate of emissions that reflects:
     (a) The most stringent emission limitation that is contained in the implementation plan of any state for such class or category of source, unless the owner or operator of the proposed source demonstrates that such limitations are not achievable; or
     (b) The most stringent emission limitation that is achieved in practice by such class or category of source, whichever is more stringent.
     In no event shall the application of this term permit a proposed new or modified source to emit any pollutant in excess of the amount allowable under applicable new source performance standards.
     (((15))) (19) "Modification" means any physical change in, or change in the method of operation of, a stationary source that increases the amount of any air contaminant emitted by such source or that results in the emission of any air contaminant not previously emitted. The term modification shall be construed consistent with the definition of modification in Section 7411, Title 42, United States Code, and with rules implementing that section.
     (((16))) (20) "Multicounty authority" means an authority which consists of two or more counties.
     (((17))) (21) "New source" means (a) the construction or modification of a stationary source that increases the amount of any air contaminant emitted by such source or that results in the emission of any air contaminant not previously emitted, and (b) any other project that constitutes a new source under the federal clean air act.
     (((18))) (22) "Official act of the legislature" means a bill or section of a bill passed by a majority of the house of representatives and senate and not vetoed by the governor.
     (23) "Permit program source" means a source required to apply for or to maintain an operating permit under RCW 70.94.161.
     (((19))) (24) "Person" means an individual, firm, public or private corporation, association, partnership, political subdivision of the state, municipality, or governmental agency.
     (((20))) (25) "Reasonably available control technology" (RACT) means the lowest emission limit that a particular source or source category is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility. RACT is determined on a case-by-case basis for an individual source or source category taking into account the impact of the source upon air quality, the availability of additional controls, the emission reduction to be achieved by additional controls, the impact of additional controls on air quality, and the capital and operating costs of the additional controls. RACT requirements for a source or source category shall be adopted only after notice and opportunity for comment are afforded.
     (((21))) (26) "Silvicultural burning" means burning of wood fiber on forest land consistent with the provisions of RCW 70.94.660.
     (((22))) (27) "Source" means all of the emissions units including quantifiable fugitive emissions, that are located on one or more contiguous or adjacent properties, and are under the control of the same person, or persons under common control, whose activities are ancillary to the production of a single product or functionally related group of products.
     (((23))) (28) "Stationary source" means any building, structure, facility, or installation that emits or may emit any air contaminant.
     (((24))) (29) "Trigger level" means the ambient level of fine particulates, measured in micrograms per cubic meter, that must be detected prior to initiating a first or second stage of impaired air quality under RCW 70.94.473.

NEW SECTION.  Sec. 2   A new section is added to chapter 70.94 RCW to read as follows:
     (1) The department shall, by January 1, 2009, adopt a rule that identifies an estimate as to what the statewide greenhouse gas emissions level was in the year 1990.
     (2) In identifying an estimated emissions level, the department shall evaluate the best available scientific, technological, and economic information relating to historic greenhouse gas emissions.
     (3) Once adopted, the identified 1990 statewide greenhouse gas emissions level may not be amended unless the department is directed to do so by an official act of the legislature. If the department finds after adopting the 1990 statewide level that advancements in scientific, technological, or economic information warrants an amendment to the adopted level, the director of the department shall formally bring this information forward to the governor and the chairs of the appropriate committees of the legislature.

NEW SECTION.  Sec. 3   A new section is added to chapter 70.94 RCW to read as follows:
     (1) By January 1, 2020, the annual statewide greenhouse gas emissions level shall be no more than the 1990 estimated level identified by the department under section 2 of this act.
     (2) The department shall adopt rules that are designed to allow the state to satisfy the annual statewide greenhouse gas emissions level in a way that uses the maximum technologically feasible and cost-effective greenhouse gas emission reduction measures.
     (3) Any rules adopted under this section may only apply to sources of greenhouse gas emissions, or categories of sources, whose emissions are at such a level of significance, as determined by the department, that their inclusion will enable the department to effectively reduce greenhouse gas emissions and monitor compliance with the statewide greenhouse gas emissions limit.
     (4) In administering this section, the department shall adopt temporary rules under section 4 of this act and permanent rules under section 5 of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 70.94 RCW to read as follows:
     (1) Consistent with this section and section 3 of this act, the department shall adopt a series of temporary rules, by June 30, 2008, designed to allow the state to satisfy the annual statewide greenhouse gas emissions level identified in section 3 of this act.
     (2)(a) Before adopting temporary rules under this section, the department shall identify and make available to the public a list of proposed early action greenhouse gas emission reduction measures that can be implemented before the permanent rules established in section 5 of this act.
     (b) The list of proposed early actions must be made available for public inspection and comment for no less than six months before the department formally adopts the temporary rules required by this section.
     (c) Temporary rules adopted under this section must be substantially consistent with the list of proposed early actions developed by the department.
     (3) Temporary rules adopted by the department under this section shall only remain in effect until the permanent rules developed under section 5 of this act take effect.

NEW SECTION.  Sec. 5   A new section is added to chapter 70.94 RCW to read as follows:
     (1) Consistent with this section and section 3 of this act, the department shall adopt a series of permanent rules, by June 30, 2011, designed to allow the state to satisfy the annual statewide greenhouse gas emissions level identified in section 3 of this act.
     (2) Before adopting permanent rules under this section, the department shall develop a scoping plan as provided in section 6 of this act.
     (3) In adopting permanent rules under this section, the department shall, to the extent feasible:
     (a) Ensure that the rules are substantially consistent with the terms of the scoping plan adopted under section 6 of this act;
     (b) Design the rules, including the distribution of emission allowances, in a manner that is equitable, seeks to minimize costs and maximize benefits, and encourages early action to reduce greenhouse gas emissions;
     (c) Ensure that activities undertaken under the rules do not disproportionally impact low-income communities;
     (d) Ensure that entities that have voluntarily reduced their emissions before the adoption of the permanent rules receive appropriate credit for their early action;
     (e) Ensure that activities undertaken under the permanent rules complement, and do not interfere with, federal and state efforts to achieve and maintain ambient air quality standards;
     (f) Consider overall societal benefits, including reductions in air pollutants other than greenhouse gases, diversification of energy sources, and other benefits to the economy, environment, and public health;
     (g) Minimize the administrative burden of implementing and complying with the permanent rules; and
     (h) Incorporate any appropriate temporary rules adopted under section 4 of this act.
     (4) If the department includes in the permanent rules a market-based compliance mechanism, it must be designed consistent with section 7 of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 70.94 RCW to read as follows:
     (1) The department shall develop a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources by the year 2020.
     (2) In developing the scoping plan, the department shall consult with all public agencies with jurisdiction over the sources of greenhouse gas emissions.
     (3) The scoping plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources.
     (4) The department shall ensure that the scoping plan:
     (a) Evaluates the total potential costs and total potential economic and noneconomic benefits of the plan on the state's economy, environment, and public health;
     (b) Takes into account the relative contribution of each source or source category to statewide greenhouse gas emissions;
     (c) Takes into account the potential for adverse effects on small businesses; and
     (d) Recommends a de minimis threshold of greenhouse gas emissions below which emission reductions requirements will not apply.
     (5) Before final approval of the scoping plan, the department shall conduct a series of public workshops to give all interested parties an opportunity to comment on the scoping plan.
     (6) The department shall update the scoping plan at least once every five years.

NEW SECTION.  Sec. 7   A new section is added to chapter 70.94 RCW to read as follows:
     (1) The department may include in the permanent rules adopted under section 5 of this act a mechanism to allow carbon sources, or categories of carbon sources, to use market-based compliance mechanisms in order to achieve the annual statewide greenhouse gas emissions level established in section 3 of this act.
     (2) Any market-based compliance mechanism allowed by the department must be either:
     (a) A system of market-based declining annual aggregate emissions limitations for sources or categories of sources that emit greenhouse gases; or
     (b) Greenhouse gas emissions exchanges, banking, credits, and other transactions governed by rule of the department that result in the same greenhouse gas emission reduction over the same time period as direct compliance with greenhouse gas emission reduction measures adopted by the department in permanent rules under section 5 of this act.
     (3) Before including market-based compliance mechanisms in the permanent rules adopted under section 5 of this act, the department shall:
     (a) Consider the potential for direct, indirect, and cumulative emission impacts from the market-based compliance mechanisms, including localized impacts in communities that are already adversely impacted by air pollution; and
     (b) Design any market-based compliance mechanisms in a way that prevent increases in the emission of toxic air contaminants or other air pollutants.

NEW SECTION.  Sec. 8   A new section is added to chapter 70.94 RCW to read as follows:
     (1) By January 1, 2009, the department shall adopt rules that require the reporting and verification of statewide greenhouse gas emissions.
     (2) The rules adopted under this section must:
     (a) Require the monitoring and annual reporting of greenhouse gas emissions from greenhouse gas emission sources, beginning with the sources or categories of sources that contribute the most to statewide greenhouse gas emissions;
     (b) Account for greenhouse gas emissions from all electricity consumed in the state, as reported by the retail sellers of electricity;
     (c) Ensure consistent accounting of emissions, and provide reporting tools and formats to ensure collection of necessary data; and
     (d) Ensure that greenhouse gas emission sources maintain comprehensive records of all reported greenhouse gas emissions.
     (3) The department shall periodically review and update the emission reporting rules required by this section.
     (4) The department shall review existing and proposed international, federal, and state greenhouse gas emission reporting programs when developing or updating the rules required under this section, and make reasonable efforts to promote consistency among the programs.