Cap-and-Invest auction revenue

By law, the Legislature must invest Cap-and-Invest auction revenue in climate projects throughout the state, prioritizing environmental justice. These projects can be used to reduce Washington’s greenhouse gas emissions beyond what will be achieved by the program’s cap on emissions and help local communities adapt to the worsening impacts of climate change.

During the 2023-2025 biennium, 37 state agencies invested over $1.5 billion in CCA revenue:

Nearly $390 million (26%) will directly reduce greenhouse gas emissions by about 1.2 million metric tons, in addition to yielding other benefits. Many more projects lay a foundation for future reductions.
About $850 million (57%) – went to Washington's most vulnerable communities—far beyond the law’s 35% requirement.
Significant investments were also made in helping communities prepare for and cope with a warming climate.

See exactly how CCA funding was spent during the 2023-2025 biennium:

Review our most recent investment report
Visit the CCA dashboard – an online map that allows you to filter by geography and more
Read about specific projects and look at photos on Flickr

Accessing CCA funding

To find CCA-funding opportunities for your project, visit fundhub.wa.gov, where you can find grants for environmental work funded through the CCA and other sources.

You can also contact your local legislator about directing CCA funds to specific projects through the appropriations process.

Investments & revenue forecasts

The Legislature is responsible for investing auction revenue within the law’s requirements, and they do so by funding projects that are carried out by state agencies. 

At the end of each fiscal year, we gather information from every state agency that received funding and develop a report that details exactly how those dollars were spent. We also forecast Cap-and-Invest revenue every six months so that lawmakers have an idea of how much revenue they will have to invest.

Investments
Revenue forecasts

Each forecast is Ecology’s best estimate of future revenue. Actual revenue may be higher or lower, depending on auction prices.

Environmental justice

The Climate Commitment Act requires that at least 35% — with a goal of 40% — of auction revenue is invested in projects that directly benefit vulnerable populations within overburdened communities. Additionally, 10% of auction revenue is intended to be spent on projects that are supported by Tribes.

Our annual reports include information about whether these environmental justice requirements have been met.

Account structure

Auction revenue is held in three primary accounts and two sub-accounts until it’s appropriated by the Legislature. Funds in each of these five accounts are earmarked for specific types of projects.

A chart of the three accounts and four subaccounts created to house funds from CCA auctions (read more below) — Lawmakers eliminated the Active Transportation and the Transit Programs accounts in 2025. Residual funds following 2023-25 Biennium appropriations went into the Carbon Emissions Reduction Account.

Project types eligible for CCA funding

By law, revenue in each account must be used for certain types of projects.

Carbon Emissions Reduction Account

The funds deposited in this account must be used for projects that focus on:

Reducing transportation emissions
Investing in alternatives and reductions to single occupancy passenger vehicles
Investing in emissions reduction programs for freight, ferries, and ports

Climate Investment Account

Auction revenue deposited in this account must first be used to fund the administration of the Cap-and-Invest Program, but these expenses can't exceed 5% of total auction revenue.

Once administrative costs are covered, the remaining revenue is allocated to two sub-accounts focused on projects that increase climate resilience in Washington communities and ecosystems:

This sub-account focuses on projects that support Washington's transition to a low-carbon economy, improve air quality, and increase access to clean energy for Washington residents:

Implementing the working families tax rebate
Reducing greenhouse gas emissions in overburdened communities
Strengthening the air quality monitoring network
Supporting renewable energy technology and infrastructure
Investing in energy efficiency for industry and agriculture
Increasing building energy efficiency and supporting electrification
Supporting appliance energy efficiency
Assisting affected workers during the transition to a clean energy economy
Capturing methane and diverting organics at landfills
Deploying carbon dioxide removal
Supporting efforts to mitigate and adapt to the effects of climate change affecting Tribes

This sub-account focuses on projects that protect fish and wildlife habitats, improve aquatic ecosystems and water quality, and protect against floods:

Restoring and protecting estuaries, fisheries, and marine shoreline habitats
Increasing carbon storage in the ocean or aquatic and coastal ecosystems
Remediating and adapting to the impacts of ocean acidification
Reducing flood risk and restoring natural floodplains
Increasing the sustainable supply of water and improving aquatic habitat
Investing in stormwater infrastructure
Preserving or establishing carbon sequestration in forests and agricultural soils
Protecting or planting trees in marine shorelines and freshwater riparian areas to promote climate resilience
Increasing resilience to wildfires, improving forest health, or preserving natural lands

Air Quality & Health Disparities Improvement Account

Funds deposited in this account must be used for projects that address environmental justice and health inequity in the state, such as:

Funding the expansion of Ecology's air monitoring network in overburdened communities highly impacted by air pollution
The development and implementation of strategies to reduce health disparities in those communities