AWB 2022 Legislative Review | Page 22

2022 legislative review
process . It also allowed the creation of a reach code for the state energy code . The reach code would have been developed by the Department of Commerce and would be stricter than the existing energy code which counties could choose to adopt . The Legislature considers natural gas an important energy source for meeting state energy needs and AWB was opposed to this bill , which allowed an unelected council to make important decisions which would have statewide implications for power reliability and costs . Additionally , the power to ban energy sources belongs to the elected members of the Legislature , not the governor-appointed council . Finally , a reach code adds regulatory cost and complexity and would further increase the cost of housing in the state . The bill passed the House 51-47 but did not come up for a vote in the Senate .
HB 1682 concerning a compliance pathway specific to emissions-intensive , trade-exposed businesses for achieving their proportionate share of the state ’ s emissions reduction limits through 2050
Failed / AWB Opposed
As part of the deal to secure the votes for the Climate Commitment Act ( cap and invest ) last year , the Legislature left the complicated issue of creating a compliance pathway for the state ’ s Energy-Intensive Trade-Exposed Entities ( EITE ) to a future Legislature . Under current law , EITEs receive free allowances for the first four-year compliance period , which then decline by 3 % each subsequent compliance period to allow them time and resources to upgrade their facilities to reduce emissions . This brings the EITEs to 2030 with a 6 % reduction in free allowances . How the credits should be allocated after 2030 was left to future Legislatures . The CCA required Department of Ecology to introduce and pass a bill creating a pathway before they were able to spend any of the collected revenue from the credit auctions as an incentive to pass a bill . Ecology held several stakeholder sessions over the interim and presented HB 1682 to the Legislature .
AWB testified opposed to the bill in House Energy because it did not provide a workable pathway for EITEs past 2035 . As part of this year ’ s transportation funding package , the language preventing the CCA funds from being spent was repealed . However , HB 1682 did not come up for a vote . The question of EITE compliance past 2030 remains unanswered . This creates further uncertainty for energy-intensive tradeexposed employers in our state around their ability to comply with the CCA or continue doing business in Washington .
HB 1623 addressing the extent to which washington residents are at risk of rolling blackouts and power supply inadequacy events
Governor Vetoed / AWB Supported
Rep . Mary Dye , R-Pomeroy , is ranking minority member on the House Environment & Energy Committee .
This was a bipartisan bill that strengthened efforts to ensure that efforts to comply with the 2019 Clean Energy Transformation Act ( CETA ), do not reduce the ability of utilities to supply power . CETA requires all state utilities to steadily increase the amount of electricity they get from renewable sources and assess penalties on power generated from fossil fuels . As implementation of CETA increases , so does the risk of power insufficiency under CETA . Demand response — electricity generation that can respond to sudden changes in demand — can
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