(1) Calculating the total program allowance budget. Ecology will use the following methods for setting the total program allowance budget for each year. The total program allowance budget for each year must be in units of MT CO2e on a mass basis.
(a) Emissions years 2023 through 2026.
The total program allowance budget for emissions years 2023 through 2026 is the first compliance period baseline described in WAC 173-446-200 Table 200-1 multiplied by the economy wide emissions level for that year described in WAC 173-446-210 Table 210-1, divided by the 2022 economy wide emissions level.
TY | = | BY | * | EY | ||
E2022 |
Where: | |||
TY | = | The total program allowance budget for a given year | |
BY | = | The First Compliance Period: The first compliance period baseline described in WAC 173-446-200 Table 200-1 | |
EY | = | The economy wide emissions level for the given budget year described in WAC 173-446-210 Table 210-1 | |
E2022 | = | The economy wide emissions level for 2022 that is described in WAC 173-446-210 Table 210-1 | |
(b) Second compliance period.
The total program allowance budget for emissions years in the second compliance period decreases annually as described in WAC 173-446-210 Table 210-1. To calculate these values the second compliance period baseline described in WAC 173-446-200(3) as listed in WAC 173-446-200 Table 200-1 is multiplied by the economy wide emissions level for that year described in WAC 173-446-210 Table 210-1 divided by the 2022 economy wide emissions level.
TY | = | BY | * | EY | ||
E2022 |
Where: | |||
TY | = | The total program allowance budget for a given year | |
BY | = | The Second Compliance Period: The second compliance period baseline described in WAC 173-446-200 Table 200-1 | |
EY | = | The economy wide emissions level for the given budget year described in WAC 173-446-210 Table 210-1 | |
E2022 | = | The economy wide emissions level for 2022 that is described in WAC 173-446-210 Table 210-1 | |
(c) Subsequent compliance periods.
The total program allowance budget for the third and subsequent compliance periods decreases annually as described in WAC 173-446-210 Table 210-1. To calculate these values the baseline described in WAC 173-446-200(4) as listed in WAC 173-446-200 Table 200-1 is multiplied by the economy wide emissions level for that year described in WAC 173-446-210 Table 210-1 divided by the 2022 economy wide emissions level.
TY | = | BY | * | EY | ||
E2022 |
Where: | |||
TY | = | The total program allowance budget for a given year | |
BY | = | The Subsequent Compliance Period: The baseline for subsequent compliance periods described in WAC 173-446-200 Table 200-1 | |
EY | = | The economy wide emissions level for the given budget year described in WAC 173-446-210 Table 210-1 | |
E2022 | = | The economy wide emissions level for 2022 that is described in WAC 173-446-210 Table 210-1 | |
(2) Total program allowance budget. Table 210-1 displays the total program allowance budget for each year calculated using the method established in subsection (1) of this section. When new sectors enter the program at the beginning of the third compliance period, additional allowances associated with those sectors will be added to the overall budget shown in column three from that point forward using the formula established in subsection (1)(c) of this section.
(a) If Washington enters into a linkage agreement, upon the linkage effective date, the values in column three for emissions years 2029 and 2030 of Table 210-1 will be adjusted to reflect the baseline for sectors entering the program in the third compliance period. These values will be updated pursuant to WAC 173-446-200(4) and come from Table 200-1 for the total allowance baseline.
(b) If Washington has not entered into a linkage agreement, or if Washington has entered into a linkage agreement but prior to the linkage effective date, the values in column three for emissions years 2029 and 2030 of Table 210-1 will be unchanged.
Table 210-1: Total program allowance budget for each year using the methods established in subsections (1) and (2) of this section.
Emissions Year | Economy Wide Emissions Level (MT CO2e) (Ey) | Total Allowance Budget (MT CO2e) (Ty) |
2022 | 97,912,500 | N/A |
2023 | 91,923,438 | 63,889,636 |
2024 | 85,934,375 | 59,727,052 |
2025 | 79,945,313 | 55,564,468 |
2026 | 73,956,250 | 51,401,884 |
2027 | 67,967,188 | 47,307,917 |
2028 | 61,978,125 | 43,139,287 |
2029 | 55,989,063 | 38,970,657 ** |
2030 | 50,000,000 | 34,802,026 ** |
2031 | 47,700,000 | 33,201,133 * |
2032 | 45,400,000 | 31,600,240 * |
2033 | 43,100,000 | 29,999,347 * |
2034 | 40,800,000 | 28,398,453 * |
2035 | 38,500,000 | 26,797,560 * |
2036 | 36,200,000 | 25,196,667 * |
2037 | 33,900,000 | 23,595,774 * |
2038 | 31,600,000 | 21,994,881 * |
2039 | 29,300,000 | 20,393,987 * |
2040 | 27,000,000 | 18,793,094 * |
2041 | 24,800,000 | 17,261,805 * |
2042 | 22,600,000 | 15,730,516 * |
2043 | 20,400,000 | 14,199,227 * |
2044 | 18,200,000 | 12,667,938 * |
2045 | 16,000,000 | 11,136,648 * |
2046 | 13,800,000 | 9,605,359 * |
2047 | 11,600,000 | 8,074,070 * |
2048 | 9,400,000 | 6,542,781 * |
2049 | 7,200,000 | 5,011,492 * |
2050 | 5,000,000 | 3,480,203 * |
Compliance periods will be determined upon linkage, as noted in the "compliance period" definition in WAC 173-446-020. | |
* | Prior to linkage, the allowance budgets for 2031 and each year thereafter, will be based on the baseline described in WAC 173-446-200 Table 200-1 for subsequent compliance periods. |
** | Upon linkage, the allowance budgets for 2029 and each year thereafter, will be based on the baseline described in WAC 173-446-200 Table 200-1 for subsequent compliance periods. |
Table 210-2: Increase in allowance budgets (MT CO2e) in the first compliance period as a result of the clarification from the legislature that the target date for the emissions reductions required by RCW 70A.45.020 is December 31st, instead of January 1st, of each year.
Emissions Year | Increase in Budget (MT CO2e) |
2023 | 601,071 |
2024 | 1,202,143 |
2025 | 1,803,214 |
2026 | 2,404,286 |
Table 210-3: The increase in the allowance budgets from 2027-2030 caused by the addition of waste to energy facilities as covered entities and as a result of the clarification from the legislature that the target date for the emissions reductions required by RCW 70A.45.020 is December 31st, instead of January 1st, of each year.
Emissions Year | Increase in Budget (MT CO2e) |
2027 | 3,073,973 |
2028 | 3,668,999 |
2029 | 4,264,024 |
2030 | 4,859,048 |
[Statutory Authority: Chapter 70A.65 RCW, RCW 70A.15.2200, and 70A.02.060. WSR 26-19-139 (Order 24-02), s 173-446-210, filed 9/23/26, effective 10/24/26. Statutory Authority: RCW 70A.65.220. WSR 22-20-056 (Order 21-06), § 173-446-210, filed 9/29/22, effective 10/30/22.]