EITE Allocation: 2035-2050

When the Legislature established the Cap-and-Invest Program, it decided to give emissions-intensive, trade-exposed industries (EITEs) most of the allowances they need at no-cost through 2034. Without statutory changes, EITEs will continue receiving the same amount of no-cost allowances through 2050.

Continuing on this course would compromise the integrity of the Cap-and-Invest Program. The amount of no-cost allowances that go to EITEs and utilities would likely exceed the annual allowance budget – total number of allowances available each year – by the late 2030s or early 2040s, leaving no allowances for other businesses and eliminating revenue for the state.

As required by law, Ecology developed a report to the Legislature with policy options for EITE no-cost allocation, which we submitted in January 2026. We're now working on a new report with additional recommendations on how to allocate no-cost allowances to EITEs for 2035-2050.

More information on the new report and opportunities to provide input is below.

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Read about the upcoming report to the Legislature
Be involved in the process
Read the January 2026 report to the Legislature

Upcoming report to the Legislature

Ecology is preparing recommendations on how to allocate no-cost allowances to EITEs for 2035-2050 and must address four key focus areas:

A method for making annual reductions to EITE allowances that mitigate leakage and align with allowance budgets and emission limits.
Criteria and methods for making adjustments to EITE allowance allocations as needed.
Proposed design of a consignment policy that would require EITEs to invest in decarbonization projects.
Additional state policies or strategies to support emissions reductions and decarbonization in EITEs.

The law also requires Ecology to consider certain policy and technical issues as it develops these recommendations. This includes analyzing the potential impacts of implementing the recommendations on Tribes and overburdened communities.

Be involved in the process

We’ll consider input from representatives of EITE facilities, Tribes, environmental advocates, overburdened communities, subject matter experts, and the public while developing this new report.

Provide comment

We held a public comment period from June 1 to July 24, 2026. View comments received.

Attend a public meeting

We don't have any meetings scheduled at this time. See previous meeting information:

June 11, 2026: We provided an overview of the report's focus areas and an opportunity to ask questions. Watch the recording. View the presentation.

We continue to invite Tribes, community groups, and individuals near EITEs to meet with us to share your thoughts and ask questions. Upon request, Tribes may request Government-to-Government consultation any time during the process. Please contact us at CCAEITEIndustries@ecy.wa.gov.

Timeline for Ecology’s work on EITE allowance allocation

Ecology has been working to develop options and recommendations for EITE policy for 2035-2050 since late 2024. Below is additional information on this timeline.

Winter 2024/2025: We sought input on the types of information, technical issues, and other factors to inform the approach for allowances allocation to EITEs from 2035 to 2050. We formed two advisory groups, EITE Industries Advisory Group and EITE Policy Advisory Group.

Summer 2025: We sought feedback from advisory groups, Tribes, the Environmental Justice Council, and interested parties on draft findings and information that would inform our report to the Legislature. We hosted a public meeting on Aug. 6 (view recording), had a comment period (view comments), and a Tribal forum.

Fall 2025: We completed the report.

January 2026: We submitted the report to the Legislature and notified the public and interested parties.

Previous engagement materials and advisory group meetings

Below are links to draft materials publicly shared in summer 2025 as well as information from the advisory group meetings. The feedback we received in response to these documents helped informed Ecology’s January 2026 report to the Legislature. Ecology will also consider this feedback as it develops its new report and recommendations on EITE allowance allocation for 2035-2050.

Advisory groups

Ecology formed two advisory groups, EITE Industries Advisory Group and EITE Policy Advisory Group, which met in winter 2024 and summer 2025. The meetings were open for the public to view and included a public comment opportunity.

Below is a list of the meeting topics and materials for the meetings between May and July 2025. Ecology presented materials at a joint meeting with both advisory groups, then the following week the individual advisory groups each met to discuss the topics. If materials are not accessible to a screen reader, please contact CCAEITEsIndustries@ecy.wa.gov for assistance.

May 1: Policies for avoiding carbon leakage and methods for benchmarking EITE emissions (presentation| recording| summary)
- Policy Advisory Group discussion (recording| summary)
- Industries Advisory Group discussion (recording| summary)
May 29: Methods for EITE allowance allocation and environmental justice and economic impacts of EITEs. (presentation| recording| summary)
- Policy Advisory Group discussion (recording| summary)
- Industries Advisory Group discussion (recording| summary)
June 26: Options for EITE allowance allocation for 2035-2050 and presentations by E3 and PNUCC (presentation| summary| recording)
- Policy Advisory Group discussion (recording| summary)
- Industries Advisory Group discussion (recording| summary)
July 24: Recommendations for the Legislature and preliminary environmental justice evaluation (ERG report| presentation| summary| recording)
- Policy Advisory Group discussion (recording| summary)
- Industries Advisory Group discussion (recording| summary)
Aug. 14: Additional opportunity for Industries Advisory Group to meet with Ecology (recording)

We submitted a report to the Legislature with allowance allocation policy options for EITEs past 2034. The report was developed with extensive input from industry, environmental groups, community organizations, Tribes, and others. In addition to no-cost allocation, the report covers other important considerations, such as air pollution concerns and barriers to decarbonization.

Read the report to the Legislature

June – July 2026: We gathered input from Tribes, community members, and interested parties, including representatives of EITE facilities, environmental advocates, community organizations, and subject matter experts.

Fall 2026: We'll write the new report with updated recommendations and consideration from the public and interested parties.

December 2026: We'll submit the report to the Legislature.

Contact information

Cap-and-Invest Industrial team
CCAEITEIndustries@ecy.wa.gov
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