Western lawmakers and regulators produced a whirlwind of climate initiatives last year, advancing numerous bills, regulations and proposals to reach net-zero emissions by 2050. 

Washington Adopts Cap-and-trade, Low-Carbon Standard

The passage of Senate Bill 5126 in April made Washington the second state in the nation behind California to adopt a cap-and-trade program, fulfilling a longtime objective of Democratic Gov. Jay Inslee. A task force appointed by Inslee is leading brainstorming efforts for the program, to be implemented by the state’s Department of Ecology. The program could potentially link up with the Western Climate Initiative trading pact, which currently includes California and Quebec. (See Wash. Becomes 2nd State to Adopt Cap-and-trade.)

Washington lawmakers last spring also passed a bill (HB 1091) implementing a low-carbon fuel standard (LCFS). The new law requires that carbon emissions from gasoline and diesel fuel sold in the state be cut 10% below 2017 levels by 2028 and 20% by 2035. The rules exclude emissions from fuel exported out of state or used by water vessels and railroad locomotives. (See LCFS Bill Passes Washington Legislature.)

The legislature also approved a bill (HB 1287) that requires the state’s Department of Transportation to establish a system to predict the growth of electric vehicles in the state and the expected number and locations of charging stations. The legislation also calls for utilities to use state predictions to map out where charging stations should be installed in their own areas. 

Inslee vetoed a portion of the bill that called for the state to implement a “road usage” charge for EVs — a fee based on vehicle miles traveled — saying he didn’t want Washington’s conversion to electric vehicles to be legally linked to such a charge. (See Inslee Vetoes Part of Wash. EV Mapping Bill.)

A new Republican-sponsored law (SB 5000) will cut Washington’s 6.8% vehicle sales tax in half for the first 650 hydrogen fuel cell vehicles (FCEVs) sold in the state. (See Green Transportation Bills Headed for Inslee’s Desk.) Douglas County Public Utility District last year broke ground on the state’s first green hydrogen production facility, which is intended to provide fuel for the FCEV fueling stations.

Ore. Tackles Cap-and-invest, Clean Power, Landfill Methane

In Oregon, the state’s Environmental Quality Commission last month approved a cap-and-invest program that sets declining caps on greenhouse gas emissions from the state’s fuel suppliers, targeting a 90% cut by 2050. The cap portion of the new Climate Protection Program (CPP) will cover natural gas local distribution companies and suppliers of gasoline, diesel and propane. Another CPP component requires certain industrial stationary sources to reduce their GHG emissions using best available emissions reduction approaches, with plans subject to review by the state’s Department of Environmental Equality (DEQ). (See Oregon Adopts GHG Cap-and-invest Program.)

Oregon lawmakers last spring passed the country’s most ambitious clean energy mandate (HB 2021) (tied with New York), requiring the state’s investor-owned utilities to serve their customers with 80% emissions-free electricity by 2030 and 100% by 2040. IOUs serve about three-quarters of the population. (See West Coast Could Be Net Zero by Midcentury.)

In the fall, Oregon also adopted the nation’s most stringent landfill gas emissions standards, part of an effort to reduce the release of heat-trapping methane. The DEQ estimates that landfills accounted for 37% of Oregon’s carbon dioxide-equivalent emissions from stationary sources in 2019, excluding power generators. (See Oregon Adopts Nation’s Strictest Landfill Emissions Rules.)

On the EV front, an advisory group convened by Oregon’s Department of Transportation published a report last summer showing that the state must have 155,249 public chargers in place — compared with about 3,500 today — to accommodate the 2.5 million EVs that policymakers expect will be registered by 2035. The report also outlined recommendations for how the state should get there. (See Oregon Study Charts Explosive Growth of EV Chargers.)

Sweeping Bill in Nev.

Nevada lawmakers in May passed a far-reaching bill (SB 448) to expand electric transmission and boost the presence of EV chargers across the state. (See Nev. Bill Would Ramp up Tx, EV Spending, Prepare for RTO.)

“This bill would create a framework by which we could then develop transmission lines across the state of Nevada and be able to access wind in Wyoming, solar in the Southwest, hydro in the Northwest, and provide power to our neighbors in Southern California and Central California,” said Sen. Chris Brooks (D), the bill’s chief sponsor.

The new law also aligns utility planning processes with the state’s decarbonization goals. Another provision requires utilities to join a regional transmission organization by 2030, a process Gov. Steve Sisolak got underway last month with the appointment of a task force that will advise the governor and legislature on the process. (See Nev. Gov. Sisolak Appoints Regional Tx Task Force.)

Regulators in Nevada and neighboring Arizona late last year both approved plans encouraging utilities to adopt electric vehicles. The Nevada Public Utilities Commission approved NV Energy’s plan to spend $1electr00 million over three years to develop about 1,820 EV chargers at 120 sites, in accordance with SB 448. (See NV Energy Gets Green Light for $100M EV Charger Plan.) Meanwhile, the Arizona Corporation Commission directed that state’s IOUs to develop transportation electrification plans that base future investments on a “high-adoption scenario” for EVs.

Additionally, Nevada’s Legislative Commission voted in October to adopt Clean Cars Nevada, a regulation that aligns the state’s zero-emissions vehicle (ZEV) policies with California and provides automakers with credits for selling ZEVs in state. Although the regulation won’t take effect until model year 2025, automakers will be able to begin earning “early” credits this year. (See Nev. Adopts Clean Cars Rule, Allows Early Credits.)

Winds Blow from Calif.

Despite the policy actions elsewhere in the West, California in many respects remained the climate policy trendsetter for the region and the country, advancing new initiatives related to cap-and-trade, EVs and building decarbonization.

At the U.N. Climate Change Conference of the Parties (COP26) in Glasgow, Scotland in November, California demonstrated its clout when it entered an agreement with Quebec and New Zealand to cooperate on carbon markets and other climate actions. The pact, signed by California Air Resources Board (CARB) Chair Liane Randolph, calls for the three governments to explore alignment of their cap-and-trade programs through program features such as cap setting, auctions, credit allocation and market rules. (See Calif., Quebec, NZ Pledge Cooperation on Climate, Carbon Markets.) 

California leads the nation in ZEV ownership, and CARB last year moved broadly to help the state accelerate uptake of the vehicles. 

In August, the agency proposed a plan to give auto manufacturers environmental justice (EJ) credits for selling ZEVs at a discount to community programs that offer services such as ZEV car sharing. Manufacturers could use the EJ credits to boost the number of total credits they earn under the state’s existing ZEV credit program, which is based on a purchased vehicle’s range on a single charge. (See CARB Plan Aims to Broaden Access to ZEVs.)

In October, CARB proposed to allow car manufacturers selling vehicles in the states that follow California’s ZEV regulations to transfer ZEV credits among states, starting with model year 2026. Twelve states have so far adopted California’s ZEV rules. (See CARB Plan Would Allow Interstate Transfer of ZEV Credits.) 

CARB in November approved a $1.5 billion clean transportation funding plan that includes $515 million for a popular electric car incentive program, $570 million for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project, and $75 million for a program that encourages low-income residents to replace old cars with zero- or near-zero-emissions vehicles. The plan also gives $195 million to the Clean Off-Road Equipment Voucher Incentive Project, which provides incentives for equipment such as zero-emission tractors and forklifts. (See CARB Approves $1.5B Clean Transportation Package.)

On the building decarbonization front, the California Energy Commission last summer approved a major state building code update expected to “juice the market” for heat pumps, according to Commissioner Andrew McAllister. The new code sets requirements for electric heat pumps for space and water heating, solar paired with battery storage in commercial buildings, and wiring homes to equip them for all-electric appliances. (See Calif. Energy Commission Adopts 2022 Building Code.)

“California is being forced to lead even more than before, and that’s a good thing,” McAllister said when the CEC approved the code. “The winds are blowing through California. They start here and blow elsewhere.”

This story relied heavily on the previous reporting of John Stang, Elaine Goodman and Hudson Sangree.