Washington Carbon Dioxide Storage Agreement
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How to fill out Carbon Dioxide Storage Agreement?
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FAQ
Washington's new law, the Climate Commitment Act, requires businesses that emit over 25,000 metric tons of carbon a year to pay for each metric ton in total. The state joins 14 others that have implemented some form of a program that sets declining caps on emissions from companies.
The Climate Commitment Act (CCA) caps and reduces greenhouse gas (GHG) emissions from Washington's largest emitting sources and industries, allowing businesses to find the most efficient path to lower carbon emissions.
The CCA covers facilities that emit 25,000 metric tons of carbon dioxide equivalent or more per calendar year. Some examples of the covered entities in the CCA include: electric generators or deliverers of imported electricity, fossil fuel suppliers, landfills, and railroad companies.
The CCA establishes an annual cap on greenhouse gas emissions, which is set and maintained by Ecology's distribution and auction of a controlled number of allowances (each of which is equal to one metric ton of CO2e). Subject to holding limits, allowances may be used for current or future compliance obligations.
In 2021, Washington adopted the CCA, which imposes an economy-wide cap on Washington's GHG emissions and requires ?covered entities? ? those emitting over 25,000 metric tons of carbon dioxide-equivalents annually ? to obtain sufficient allowances or offsets to cover their GHG emissions.
In 2021, the Washington State Legislature passed the Climate Commitment Act (CCA), which creates a market-based program (called the ?cap-and-invest? program) to cap and reduce greenhouse gas emissions.
Exempted emissions include those from fuels used for agricultural purposes, aviation fuels, and marine fuels combusted outside of Washington. Emissions from fuels exported out of Washington are also excluded. Specific guidance about exemptions are available on the CCA Emissions Reporting webpage.
The CCA requires that offset projects must result in greenhouse gas reductions that are real, permanent, quantifiable, verifiable, and enforceable. Offset projects include things such as reforestation, planting trees in urban areas, and capturing methane on dairy farms.