Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Agriculture & Natural Resources Committee
HB 1508
Brief Description: Expanding revenue generation and economic opportunities from natural climate solutions and ecosystem services.
Sponsors: Representatives Reeves, Parshley and Springer.
Brief Summary of Bill
  • Authorizes ecosystem service project contracts on Department of Natural Resources lands.
Hearing Date: 3/6/25
Staff: Lily Smith (786-7175).
Background:

The Department of Natural Resources (DNR) manages 5.6 million acres of state-owned public lands, which includes forestlands, trust lands, and aquatic lands.  Revenue from the sale of valuable materials on state forestlands and trust lands supports public schools, universities, other institutions, and services in many counties.  Revenue from the sale of valuable materials on state-owned aquatic lands supports the ownership, enhancement of, and access to aquatic lands for public purposes and fish and game projects.  The Board of Natural Resources (Board) sets policies to guide how the DNR manages state lands and resources. 
Summary of Bill:

With approval by the Board, the DNR may enter into contracts for payment for ecosystem service projects (ES projects) to generate revenue on any public lands it manages.  Ecosystem service projects are projects that provide benefits that the public enjoys as a result of natural processes and biodiversity, and includes carbon sequestration and storage, air and water filtration, climate stabilization, and disturbance mitigation.  

 

An ES project must:

  • be an afforestation, reforestation, or aquatic project;
  • result in a revenue increase to beneficiaries;
  • be consistent with ongoing forest health efforts related to wildfire response, restoration, and community resilience;
  • be consistent with existing carbon sequestration policies; and
  • support required forest sector workforce development goals and investments.


The DNR may directly offer ecosystem service credits for sale and enter into contracts with ecosystem service project developers or brokers, including third-party ecosystem service project developers or brokers.  The Board has certain oversight responsibilities for sales and contracts.

 

Contracts for ES projects may last for up to 125 years.  Proceeds from contracts must be deposited into the appropriate account in the State Treasury and distributed in the same manner as money derived from the sale of valuable materials under current law.  


The DNR must submit a report to the Legislature and the Office of Financial Management by December 1, 2026, that includes information on payment for ES projects, issues in the process of attempting to implement carbon offsets or payment for ES projects, and recommendations to address those issues.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.