How we're funded
Washington state pays for environmental work with funding from state taxes and federal grants, as well as revenue from Ecology's permit and accreditation fees, loan programs, and climate auctions. We "pass through" much of our funding to local governments, Tribes, utilities, and organizations that are doing on-the-ground environmental work in their communities.
Model Toxics Control Act
The Model Toxics Control Act (MTCA) is Washington's cornerstone legislation for protecting clean air, land, and water. Paid for by tax dollars, cost recovery, and penalties, MTCA funding is the largest source of money for environmental protection, restoration, and cleanup across Washington. In 2025-2027, MTCA funding makes up over 25% of our total budget.
Hazardous Substance Tax
In 1988, voters approved the MTCA initiative with a tax on hazardous substances, which is levied on more than 8,000 hazardous substances, including petroleum products and certain chemicals and pesticides. Revenue from this tax makes up more than 95% of the money deposited into MTCA accounts.
While Ecology is the administering agency for MTCA accounts, the funding supports work at 11 other state agencies. MTCA accounts also provide critical pass-through funding to local organizations to support their work to protect communities from pollution and contamination.
Climate Commitment Act
The Climate Commitment Act (CCA) reduces climate pollution by putting a price on greenhouse gas emissions. The law requires large emitters to compete to buy allowances for every metric ton of greenhouse gases they release through Cap-and-Invest auctions. To reduce emissions, Ecology gradually decreases the number of allowances for sale each year.
By law, auction revenue must be invested in climate and air quality projects throughout the state, prioritizing environmental justice. The legislature appropriates these funds to dozens of state agencies, which then invest the funds to support local communities.
For Ecology, revenue from climate auctions supports the following grant programs:
- Floodplains by Design grant program
- Landfill methane emissions reduction grants
- Overburdened communities grants
- Tribal carbon offset assistance program grants
- Tribal Climate Capacity grants
Federal funding and grants
We receive funding and grants from federal agencies like the U.S. Environmental Protection Agency (EPA) for environmental work. Much of this funding gets "passed through" to other organizations in Washington state via our grant and loan programs.
Clean water funding
We use grant money from the U.S. EPA and state-match dollars to offer low-cost financing for clean water projects throughout the state. With repayments on past loans funding future projects, we've turned $964 million of federal investment into over $3 billion in clean water funding.
We also receive grants from the U.S. Department of the Interior, the Department of Commerce, the Department of Homeland Security, and the Department of Energy for environmental work.
Other state taxes and fees
Like most state agencies, Ecology's operating costs are funded in part by Washington's tax revenues. The legislature authorizes our budget and appropriates funding from the state general fund, as well as dozens of dedicated accounts.
Oil spill response tax and oil spill administration tax
Washington charges taxes on petroleum products that enter our state through vessels, rail cars, and pipelines. Revenue from these taxes helps pay for oil spill prevention, spill preparedness and response, and restoration. Learn more about our Spills Program.
Other environmental taxes and fees that contribute to state funding include the litter tax and the refuse (solid waste) tax.
Permit and accreditation fees
We issue more than 30 different permits and certifications, covering everything from residential burning, to aquatic pesticide use, to handling of radioactive waste. Permits, certifications, and accreditation (like our environmental lab accreditation program) support environmental work across the state. The fees we collect allow many of our programs to be financially self-sustaining.
Penalties and settlements
Ensuring compliance with federal and state laws and rules is our commitment to the citizens and businesses in Washington who depend on clean air, land, and water, and reliable water supplies. We use monetary penalties — often as a last resort — to correct environmental violations and deter future violations.
The money we collect from penalties is deposited into special accounts that pay for:
- Environmental restoration and enhancement projects.
- Research and development.
- Permitting and regulatory programs.
- Education and assistance.
Read about recent settlements on penalties we've issued on our news page.