Chapters 173-441 and 173-446 WAC – Cap-and-Invest Program Updates and Linkage

Ecology is proposing amendments to the Climate Commitment Act Program Rule (chapter 173-446 WAC) and the Reporting of Emissions of Greenhouse Gases Rule (chapter 173-441 WAC) to make improvements to the implementation of the Cap-and-Invest Program, facilitate the linkage of Washington’s carbon market with the California-Québec carbon market, and make other necessary updates including updates required to reflect amendments to the chapter 70A.65 RCW, Climate Commitment Act (CCA).  

Proposed amendments: 

  • Allow for the option to link Washington’s carbon market with the California-Québec carbon market, creating a unified carbon market across the three jurisdictions. This rulemaking sets the stage for potential future action to link with California and Québec by aligning certain aspects of the Cap-and-Invest Program rules with those jurisdictions, including compliance period lengths, allowance price containment provisions, registration requirements, corporate association requirements, and auction processes. The rule includes provisions that would become effective upon linkage with another jurisdiction.  
  • Set the allowance budgets for future compliance periods (2027-2050) and adjust 2023 through 2026 budgets consistent with statutory direction, ensuring that emissions reductions align with Washington's 2030, 2040, and 2050 greenhouse gas emissions limits. This rule also facilitates the entry of additional sectors—waste to energy and railroads— to coverage under the Cap-and-Invest Program in future compliance periods, as required by statute.  
  • Address topics associated with imported electricity and centralized electricity markets, as well as amendments relevant to allowance allocation to electric utilities.  
  • Implements sections of recently enacted legislation, including Senate Bill 6058 (2024) to facilitate linkage; House Bill 1975 (2025), which modifies auction price containment mechanisms, allowance supply, and ceiling prices; House Bill 1912 (2025), which updates the exemption for fuels used for agricultural purposes; and House Bill 2416 (2026), which concerns the treatment of waste to energy facilities.   
  • Enhance clarity, strengthen enforcement, and ensure that the market remains effective. These amendments are based on implementation experience from the start of the Cap-and-Invest Program, in 2023, to date.  

Overall, Ecology anticipates that these amendments will improve program implementation, facilitate potential future linkage, and ultimately strengthen market stability and confidence, as well as ensure that the rule aligns with changes to statute. 

Rulemaking timeline

Timeline

Announcement phase (CR-101)

Filing date:
March 31, 2025


Announcement documents

Announcement documents (withdrawn)

Rule development phase

April 11, 2024 – Early 2026

Public input & involvement

We plan to hold public meetings to provide information about the rulemaking and seek your input. We'll update this page with meeting specifics.

To get updates about these meetings and this rulemaking, join our mailing list.

Draft rule language 

Below are the most updated drafts of the rule language:

July 2025

April 2025

July 2024 

Current comment period

The formal comment period is currently open. Please scroll down to Rule Proposal Phase for more information. 

Past comment periods

Public comment period for electric utility allocation topics (informal)
July 22, 2025, 12:00am – August 15, 2025, 11:59 p.m.
April 17, 2025, 12:00am  – May 2, 2025, 11:59 p.m.
November 13, 2025, 12:00 a.m. – December 5, 2025, 11:59 p.m.   
Review comments

Public comment period for Cap-and-Invest Program Updates and Linkage rulemaking (informal)
October 6, 2025, 12:00 a.m. – October 31, 11:59 p.m. 
July 28, 2025, 12:00 a.m. – September 5, 2025 11:59 p.m.​​​​​​
April 16, 2025, noon – May 16, 2025, 11:59 p.m
Review comments

Public comment period for centralized electricity markets topics (informal)

February 5, 2026, 2 p.m. – February 20, 2026, 11:59 p.m. (Requested Feedback)
June 26, 2025, 12: a.m. – July 30, 2025, 11:59 p.m.
March 6, 2025, 12 a.m. – April 4, 2025, 11:59 p.m.
May 5, 2026, 12 a.m. - May 20, 2026, 11:59 p.m. (WAC 173-441-124 Draft Rule)
Review comments

Public comment period for electricity imports topics (informal)
Oct. 30, 2024, midnight – Dec. 20, 2024, 11:59 p.m.
Review comments

Public comment period (informal)
June 3, 2024, 5 p.m. – Sept. 27, 2024, 11:59 p.m.
Review informal comments on this rulemaking. 

 

Ecology's public meetings

Date Documents Location

Cap-and-Invest Public Workshop: Electricity imports (Chapter 173-441 WAC)

May 5, 2026
9:00 a.m. to 12:00 a.m.

WAC 173-441-124 Draft Rule Language
Presentation

Public meeting recording

Cap-and-Invest Electric utility allocation workshop

November 13, 2025
9:00 a.m. to 12:00 a.m.

Presentation
View Comments
Public workshop recording 

Cap-and-Invest House Bill 1975 Public Workshop

October 15, 2025
9 a.m. to 11:00 a.m.

Presentation Public workshop recording

Cap-and-Invest Program Rulemakings- Community forum

August 13, 2025
2 p.m. to 3:30 p.m.

Draft rule language (173-446) - Changes to the Climate Commitment Act Program rule

Draft rule language (173-441) - Changes to the Reporting of Emissions of Greenhouse Gases rule

Presentation

Community forum recording

Cap-and-Invest Program Updates and Linkage public meeting

August 7, 2025
9 a.m. to 11 a.m.

Draft rule language (173-446) - Changes to the Climate Commitment Act Program rule

Draft rule language (173-441) - Changes to the Reporting of Emissions of Greenhouse Gases rule

Presentation

Public meeting recording

Cap-and-Invest Electric utility allocation workshop

July 22, 2025 
2 p.m. to 4 p.m.

 

Presentation

View comments

Public Workshop Recording 

Cap-and-Invest Centralized electricity markets and electricity imports workshop

June 26, 2025 
2 p.m. to 4 p.m. 

Presentation

View comments

Public workshop recording 

Cap-and-Invest Program Updates and Linkage community forum

May 5, 2025
2:30 p.m. to 4:30 p.m.

Draft rule language (173-446) - Changes to the Climate Commitment Act Program rule

Draft rule language (173-441) - Changes to the Reporting of Emissions of Greenhouse Gases rule

Presentation

Community forum recording

Cap-and-Invest Program Updates and Linkage public meeting

April 30, 2025
12:30 p.m. to 2:30 p.m.

Draft rule language (173-446) - Changes to the Climate Commitment Act Program rule

Draft rule language (173-441) - Changes to the Reporting of Emissions of Greenhouse Gases rule

Presentation

Public meeting recording

Electric utility allocation workshop

April 17, 2025
1 p.m. to 3 p.m.

Presentation

View comments

Public workshop recording

Centralized electricity markets workshop

March 6, 2025
1 p.m. to 3 p.m.

Presentation

Requested feedback

View comments

Public workshop recording

Linkage Rulemaking Meeting on Electricity Imports Topics

Tuesday, Nov. 19, 2024
9 a.m. to 11 a.m.

Presentation

Requested feedback

View comments

Public meeting recording

Linkage Environmental Justice
Listening Session

Monday, July 22, 2024
9 a.m. to 11 a.m.

Draft rule language (173-441)

Draft rule language (173-446)

Presentation

Public meeting recording

Linkage Rulemaking Public Meeting

Wednesday, July 10, 2024
2 p.m. to 4 p.m.

Draft rule language (173-441)

Draft rule language (173-446)

Presentation

Public meeting recording
Webinar information

Register for each webinar to get your meeting ID and passcode. 

To hear the webinar better or to call in only, use your phone (instead of the computer) to call 253‑215‑8782.

Rule proposal phase (CR-102)

Filing date:
June 1, 2026

Rule proposal documents:

Comment period

Comments period opens June 1, 2026 at 12 a.m. (midnight). Commments are due July 17, 2026 at 11:59 p.m.
Ecology will review all comments received & plans for adoption Sept. 2026. See above for documents related to the Proposal Phase of the rulemaking.
You can submit comments through one of the following ways:

  • Submit comments online
  • Mail to:
    Surabhi Subedi
    For standard US Mail-
    Department of Ecology
    Climate Pollution Reduction Program
    PO BOX 47600
    Olympia, WA 98504-7600

    For Parcel Service-
    Department of Ecology
    Climate Pollution Reduction Program
    Surabhi Subedi
    300 Desmond Dr SE
    Lacey, WA 98503
  • Attend a Public Hearing – see below

Public hearings

Date Documents Location

Cap-and-Invest Public Hearing

July 7, 2026
1:00 p.m.

-

Register for July 7 hearing

Cap-and-Invest Public Hearing

July 13, 2026
9:00 a.m.

- Register for July 13 hearing

Each webinar will consist of a presentation and question and answer session followed by the hearing. This is an online meeting that you can attend from any computer using internet access.  

For audio call US toll number 1-253-215-8782 and enter access code 812 9061 0429#. Or to receive a free call back, provide your phone number when you join the event. 

Additional languages

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Accessibility

To request ADA accommodation for disabilities, or printed materials in a format for the visually impaired, contact Ecology's ADA Coordinator by email at ecyadacoordinator@ecy.wa.gov, or call 360-407-6831. People with impaired hearing may call Washington Relay Service at 711. People with speech disability may call TTY at 877-833-6341.