Cap-and-Invest auction revenue

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 funds to state agencies, which is then invested in local communities.

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.

Revenue forecasts & investments

Ecology forecasts the amount of revenue we expect auctions to generate.

The Legislature uses those forecasts to designate specific amounts of money for specific purposes through the appropriations process.

Appropriated dollars flow through state agencies to projects around the state. And following each fiscal year, we report back to the Legislature about how auction revenue was invested.

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

Appropriations are based on Ecology’s forecasts.

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

Funding environmental justice

The CCA requires that a minimum of 35% — with a goal of 40% — of auction revenue be used for projects that directly benefit vulnerable populations within overburdened communities. Additionally, 10% of auction revenue must be used for projects with Tribal support. To ensure this happens, the law directs the Environmental Justice Council to provide recommendations to the Legislature on which projects receive funding. Additionally, any agency receiving CCA funding must provide a report to the Environmental Justice Council documenting progress toward environmental justice and health equity goals.

Ecology’s annual report detailing how auction revenue is invested includes information about whether these environmental justice requirements have been met.