1. Hunter M. Abell Williams Kastner
Department of Ecology Rulemaking WAC , Clean Air Rule

2. Everyone Starts Somewhere

3. History of Proposed Rule
Governor Inslee elected in 2012 pledging cap and trade proposal.
Legislature refused to pass cap and trade.
In July 2015, Governor Inslee directed Dept. of Ecology to enact new rules to reduce greenhouse gas emissions.
One week after meeting with plaintiffs in Foster v. Dept. of Ecology. “They are not related” – David Postman.

4. The Seattle Times
Inslee: I’ll use my authority to impose cap on emissions
Originally published July 28, 2015 at 1:59 pm
After being stymied on climate policy in the Legislature, Gov.
Jay Inslee announced he’s pressing ahead with executive action
to impose a cap on carbon emissions.
By Jim Brunner
Hal Bernton
Frustrated by legislative inaction on climate, Gov. Jay Inslee plans to wield his administration’s executive authority to impose a binding cap on carbon emissions in Washington state. Inslee on Tuesday directed the state Department of Ecology to step up enforcement of state pollution laws and develop the emissions cap – aimed at enforcing greenhouse-gas-reduction targets that have been in state law since “Carbon pollution and the climate change it causes pose a very real and existential threat to our state,” Inslee said in a news release.
(Continued)

5. Responses
“The Governor is essentially doubling down on a war on manufacturing in Washington state.”
Sen. Doug Ericksen, R-Ferndale
“If Republicans want to keep their heads in the sand – so be it. But now is the time for the Governor to take these actions.”
Sen. Kevin Ranker, D – Orcas Island

6. Substance of Proposed Rule
Dept. of Ecology operating under the assumption it does not have authority to enact cap and trade. Enacting rules under Clean Air Act, RCW and RCW WAC
“Cap and Reduce” program. Likely to set an emissions limit for the state and then require individual emissions sources to reduce their emissions as appropriate.
Will not have carbon market (like CA).

7. Substance of Proposed Rule
Expected to impact entities currently emitting more than 100,000 metric tons of CO2 equivalent per year. “One factor Ecology is considering…”
Will likely not include a carbon tax.
Rule may be flexible enough to allow regulated entities to work together and “trade” resources to achieve a reduction.
“Companies and organizations will have a variety of options to comply. They could reduce their carbon on their own, obtain reductions from others or facilitate emission reduction projects from economic sectors or sources different than their own.”

8. Current Status Awaiting proposed rule – expected this month.
Regulators recently completed stakeholder meetings. Public comment discussions and hearings will occur until March 2016.
Rule expected to be adopted in summer 2016.

9. How Will This Impact Our Industry?
Unanswered questions: applicability, baseline measurement, reduction curve, how to comply, deadlines, sanctions.
List of likely impacted entities:
Cowlitz County Headquarters Landfill – Castle Rock;
King County Solid Waste Cedar Hills Landfill – Maple Valley;
Land Recovery Landfill Industrial – Graham;
Roosevelt Regional Landfill – Roosevelt;
Spokane Waste to Energy Facility – Spokane; and
Terrace Heights Landfill – Yakima.

10. Conclusion Rule remains in flux.
Appears likely to apply to entities with more than 100,000 metric tons of emissions annually.
Unclear to what extent offsets will be available.
How far can agency go toward establishing cap and trade under Clean Air Act?
Costs passed on to consumer.