(The Center Square) – The Legislature passed a bill Wednesday that gives Spokane another four years to comply with state climate mandates, saving local taxpayers an estimated $15 million through 2030.
Spokane’s Waste-to-Energy facility would’ve become subject to the state’s Climate Commitment Act in 2027 if not for House Bill 2416. An official analysis says the carbon credits the region would have had to purchase to comply with the cap-and-invest program would have cost taxpayers $7 million annually.
Instead, HB 2416 creates a glide path to compliance, assuming that Gov. Bob Ferguson signs it into law.
The House passed the bill last month by a 67-30 vote, and the Senate passed it last week by a 39-10 vote, sending it back to the House to concur on amendments which the House passed on Wednesday.
“We know how important it is that we’re treating each entity that we have across our state fairly under our Climate Commitment Act,” Rep. Natasha Hill, D-Spokane, said as the House granted final passage.
The CCA sets a statewide emissions cap that declines over time, requiring certain emitters to purchase carbon allowances at auctions to breach that threshold. HB 2416 gives no-cost allowances to the city’s WTE facility for 2027 and 2028 equal to 100% of its average annual emissions from 2021 to 2025. The no-cost allowances decline under the legislation to 93% of that baseline in 2029, then to 86% in 2030.
City officials warned that without this fix, utility bills would have increased by 20% to cover the credits.
Any emissions from the facility above the 2021-2025 baseline are still subject to full-price allowances.
By December 2030, Spokane must submit a plan showing how it will meet statewide emission limits in 2040 and 2050. The city conducted a study last year on upgrading the facility with equipment capable of meeting these mandates, which could cost $75 million to $210 million and take three years to build.
The WTE facility burns enough waste to generate electricity to power about 13,000 homes. The fiscal analysis of HB 2416 estimates $14.91 million in total net savings for the region. Built in 1991 with $60 million in state funding, the WTE facility replaced landfills that were leaking into the aquifer below.
Spokane officials have argued that it’s unfair to subject their facility to carbon auctions since the state exempted landfills from the CCA after creating separate methane regulations. The region requested a 10-year CCA exemption from the state last year, but fell short as the legislature faced a major deficit.
“We are not asking for an exemption,” Mayor Lisa Brown testified during a Senate hearing last month.
“We’re asking for some time and flexibility, so that we can make the right long-term investments in the facility,” she continued, “in a way that is fair and equitable for our ratepayers and our taxpayers.”
HB 2416 now goes to the governor’s desk for Ferguson’s signature before becoming law.
