EITE Allocation: 2035-2050
Report to the Legislature is available
On Jan. 9, 2026, Ecology submitted a report to the Legislature on no-cost allowance allocation for EITEs from 2035 – 2050. Read the report.
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 and expresses intent to consider an updated EITE policy for 2035-2050 by Dec. 1, 2027. 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.
Ecology’s 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
How the report was developed and next steps
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. The draft findings are available below. 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.
January – March 2026: The Legislature will review the report during the 2026 legislative session and will direct Ecology on what to do next.
April 2026 and beyond: Ecology will follow guidance from the Legislature.
Stay involved in the process
For updates on the process and public engagement opportunities, sign up for the EITE Industries email list.
We invite Tribes, community groups, and individuals near EITEs to schedule a meeting with us to learn more and ask questions. We’re particularly interested in understanding the potential impacts of EITE facilities on individuals and communities. To schedule a meeting, please email: CCAEITEIndustries@ecy.wa.gov.
Review draft report materials and advisory groups
Draft documents
Draft material was publicly shared in summer 2025. The feedback we received in response to these documents helped inform the final report.
- Summary of draft documents | Resumen de los borradores
- Document 1: Policies for avoiding leakage in carbon pricing programs
- Document 2: Methods for developing greenhouse gas benchmarks
- Document 3: Framework for assessing methods for EITE allowance allocation
- Document 4: Potential methods for allocating allowances to EITEs
- Document 5: Review of options for allocating allowances to EITEs for 2035-2050
- Document 6: Draft recommendations
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)
- May 29: Methods for EITE allowance allocation and environmental justice and economic impacts of EITEs. (presentation| 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)
- Aug. 14: Additional opportunity for Industries Advisory Group to meet with Ecology (recording)
Related links
Contact information
Cap-and-Invest Industrial team
CCAEITEIndustries@ecy.wa.gov
Sign up for updates on EITEs