Requires the department of ecology, in developing, adopting, and implementing a state plan in order to comply with the requirements of a federal rule relating to greenhouse gas emissions from existing electric generation facilities, to develop a state plan that: (1) Maintains state flexibility to achieve compliance using market-based regulations that include the use of market-based tools, including intrastate trading of allowance allocations;

(2) Facilitates the state's participation in a regional or multistate program to trade compliance instruments; and

(3) Distributes all compliance instruments equal to the baseline emissions for the compliance period.