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RCWs > Title 80 > Chapter 80.70

Chapter 80.70 RCW

CARBON DIOXIDE MITIGATION

Chapter Listing

RCW Sections

80.70.010 Definitions.

80.70.020 Applicability of chapter -- Carbon dioxide mitigation plan --

Mitigation by a third party.

80.70.030 Permanent carbon credits.

80.70.040 Direct investment mitigation projects -- Enforcement --

Federal requirements may replace this section.

80.70.050 Independent qualified organizations with experience in 

mitigation activities -- Council oversight -- Reports.

80.70.060 Costs to be assessed against applicants and holders of site 

certification agreements.

80.70.070 Rules.

80.70.080 Certain applicants for a natural gas-fired generation plant 

exempt from chapter.

80.70.010

Definitions.

The definitions in this section apply throughout this chapter unless the 

context clearly requires otherwise.

 (1) "Applicant" has the meaning provided in RCW 

80.50.020 and includes an applicant for a permit for a fossil-fueled thermal 

electric generation facility subject to RCW 70.94.152 and 80.70.020(1) (b) or 

(d).

 (2) "Authority" means any air pollution control agency whose 

jurisdictional boundaries are coextensive with the boundaries of one or more 

counties.

 (3) "Carbon credit" means a verified reduction in carbon dioxide or 

carbon dioxide equivalents that is registered with a state, national, or 

international trading authority or exchange that has been recognized by the 

council.

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 (4) "Carbon dioxide equivalents" means a metric measure used to 

compare the emissions from various greenhouse gases based upon their 

global warming potential.

(5) "Cogeneration credit" means the carbon dioxide emissions that the 

council, department, or authority, as appropriate, estimates would be 

produced on an annual basis by a stand-alone industrial and commercial 

facility equivalent in operating characteristics and output to the industrial or 

commercial heating or cooling process component of the cogeneration 

plant.

 (6) "Cogeneration plant" means a fossil-fueled thermal power plant in 

which the heat or steam is also used for industrial or commercial heating or 

cooling purposes and that meets federal energy regulatory commission 

standards for qualifying facilities under the public utility regulatory policies 

act of 1978.

(7) "Commercial operation" means the date that the first electricity 

produced by a facility is delivered for commercial sale to the power grid.

 (8) "Council" means the energy facility site evaluation council created by 

RCW 80.50.030.

(9) "Department" means the department of ecology.

 (10) "Fossil fuel" means natural gas, petroleum, coal, or any form of 

solid, liquid, or gaseous fuel derived from such material to produce heat for 

the generation of electricity.

 (11) "Mitigation plan" means a proposal that includes the process or 

means to achieve carbon dioxide mitigation through use of mitigation 

projects or carbon credits.

 (12) "Mitigation project" means one or more of the following:

 (a) Projects or actions that are implemented by the certificate holder or 

order of approval holder, directly or through its agent, or by an independent 

qualified organization to mitigate the emission of carbon dioxide produced 

by the fossil-fueled thermal electric generation facility. This term includes 

but is not limited to the use of, energy efficiency measures, clean and 

efficient transportation measures, qualified alternative energy resources, 

demand side management of electricity consumption, and carbon 

sequestration programs;

(b) Direct application of combined heat and power (cogeneration);

 (c) Verified carbon credits traded on a recognized trading authority or 

exchange; or

 (d) Enforceable and permanent reductions in carbon dioxide or carbon 

dioxide equivalents through process change, equipment shutdown, or other 

activities under the control of the applicant and approved as part of a carbon 

dioxide mitigation plan.

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 (13) "Order of approval" means an order issued under RCW 70.94.152

with respect to a fossil-fueled thermal electric generation facility subject to 

RCW 80.70.020(1) (b) or (d).

 (14) "Permanent" means that emission reductions used to offset 

emission increases are assured for the life of the corresponding increase, 

whether unlimited or limited in duration.

 (15) "Qualified alternative energy resource" has the same meaning as in 

RCW 19.29A.090.

(16) "Station generating capability" means the maximum load a 

generator can sustain over a given period of time without exceeding design 

limits, and measured using maximum continuous electric generation 

capacity, less net auxiliary load, at average ambient temperature and 

barometric pressure.

 (17) "Total carbon dioxide emissions" means:

 (a) For a fossil-fueled thermal electric generation facility described under 

RCW 80.70.020(1) (a) and (b), the amount of carbon dioxide emitted over a 

thirty-year period based on the manufacturer's or designer's guaranteed 

total net station generating capability, new equipment heat rate, an 

assumed sixty percent capacity factor for facilities under the council's 

jurisdiction or sixty percent of the operational limitations on facilities subject 

to an order of approval, and taking into account any enforceable limitations 

on operational hours or fuel types and use; and

 (b) For a fossil-fueled thermal electric generation facility described under 

RCW 80.70.020(1) (c) and (d), the amount of carbon dioxide emitted over a 

thirty-year period based on the proposed increase in the amount of electrical 

output of the facility that exceeds the station generation capability of the 

facility prior to the applicant applying for certification or an order of approval 

pursuant to RCW 80.70.020(1) (c) and (d), new equipment heat rate, an 

assumed sixty percent capacity factor for facilities under the council's 

jurisdiction or sixty percent of the operational limitations on facilities subject 

to an order of approval, and taking into account any enforceable limitations 

on operational hours or fuel types and use.

[2004 c 224 § 1.]

80.70.020

Applicability of chapter — Carbon dioxide mitigation plan —

Mitigation by a third party.

(1) The provisions of this chapter apply to:

 (a) New fossil-fueled thermal electric generation facilities with stationgenerating capability of three hundred fifty thousand kilowatts or more and 

fossil-fueled floating thermal electric generation facilities of one hundred 

thousand kilowatts or more under *RCW 

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80.50.020(14)(a), for which an application for site certification is made to the 

council after July 1, 2004;

 (b) New fossil-fueled thermal electric generation facilities with stationgenerating capability of more than twenty-five thousand kilowatts, but less 

than three hundred fifty thousand kilowatts, except for fossil-fueled floating 

thermal electric generation facilities under the council's jurisdiction, for 

which an application for an order of approval has been submitted after July 

1, 2004;

 (c) Fossil-fueled thermal electric generation facilities with stationgenerating capability of three hundred fifty thousand kilowatts or more that 

have an existing site certification agreement and, after July 1, 2004, apply to 

the council to increase the output of carbon dioxide emissions by fifteen 

percent or more through permanent changes in facility operations or 

modification or equipment; and

 (d) Fossil-fueled thermal electric generation facilities with stationgenerating capability of more than twenty-five thousand kilowatts, but less 

than three hundred fifty thousand kilowatts, except for fossil-fueled floating 

thermal electric generation facilities under the council's jurisdiction, that 

have an existing order of approval and, after July 1, 2004, apply to the 

department or authority, as appropriate, to permanently modify the facility so 

as to increase its station-generating capability by at least twenty-five 

thousand kilowatts or to increase the output of carbon dioxide emissions by 

fifteen percent or more, whichever measure is greater.

 (2)(a) A proposed site certification agreement submitted to the governor 

under RCW 80.50.100 and a final site certification agreement issued under 

RCW 80.50.100 shall include an approved carbon dioxide mitigation plan.

 (b) For fossil-fueled thermal electric generation facilities not under 

jurisdiction of the council, the order of approval shall require an approved 

carbon dioxide mitigation plan.

 (c) Site certification agreement holders or order of approval holders may 

request, at any time, a change in conditions of an approved carbon dioxide 

mitigation plan if the council, department, or authority, as appropriate, finds 

that the change meets all requirements and conditions for approval of such 

plans.

 (3) An applicant for a fossil-fueled thermal electric generation facility shall 

include one or a combination of the following carbon dioxide mitigation 

options as part of its mitigation plan:

 (a) Payment to a third party to provide mitigation;

 (b) Direct purchase of permanent carbon credits; or

 (c) Investment in applicant-controlled carbon dioxide mitigation projects, 

including combined heat and power (cogeneration).

 (4) Fossil-fueled thermal electric generation facilities that receive site 

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certification approval or an order of approval shall provide mitigation for 

twenty percent of the total carbon dioxide emissions produced by the facility.

 (5) If the certificate holder or order of approval holder chooses to pay a 

third party to provide the mitigation, the mitigation rate shall be one dollar 

and sixty cents per metric ton of carbon dioxide to be mitigated. For a 

cogeneration plant, the monetary amount is based on the difference 

between twenty percent of the total carbon dioxide emissions and the 

cogeneration credit.

 (a) Through rule making, the council may adjust the rate per ton 

biennially as long as any increase or decrease does not exceed fifty percent 

of the current rate. The department or authority shall use the adjusted rate 

established by the council pursuant to this subsection for fossil-fueled 

thermal electric generation facilities subject to the provisions of this chapter.

 (b) In adjusting the mitigation rate the council shall consider, but is not 

limited to, the current market price of a ton of carbon dioxide. The council's 

adjusted mitigation rate shall be consistent with RCW 80.50.010(3).

(6) The applicant may choose to make to the third party a lump sum 

payment or partial payment over a period of five years.

 (a) Under the lump sum payment option, the payment amount is 

determined by multiplying the total carbon dioxide emissions by the twenty 

percent mitigation requirement under subsection (4) of this section and by 

the per ton mitigation rate established under subsection (5) of this section.

 (b) No later than one hundred twenty days after the start of commercial 

operation, the certificate holder or order of approval holder shall make a one

-time payment to the independent qualified organization for the amount 

determined under subsection (5) of this section.

 (c) As an alternative to a one-time payment, the certificate holder or 

order of approval holder may make a partial payment of twenty percent of 

the amount determined under subsection (5) of this section no later than 

one hundred twenty days after commercial operation and a payment in the 

same amount or as adjusted according to subsection (5)(a) of this section, 

on the anniversary date of the initial payment in each of the following four 

years. With the initial payment, the certificate holder or order of approval 

holder shall provide a letter of credit or other comparable security 

acceptable to the council or the department for the remaining eighty percent 

mitigation payment amount including possible changes to the rate per metric 

ton from rule making under subsection (5)(a) of this section.

[2004 c 224 § 2.]

Notes:

*Reviser's note: RCW 80.50.020 was amended by 2007 c 325 § 1, 

changing subsection (14)(a) to subsection (15)(a). RCW 80.50.020 was 

subsequently amended by 2010 c 152 § 1 and alphabetized pursuant to 

RCW 1.08.015(2)(k), changing subsection (15)(a) to subsection (12)(b).

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80.70.030

Permanent carbon credits.

(1) Carbon dioxide mitigation plans relying on purchase of permanent 

carbon credits must meet the following criteria:

 (a) Credits must derive from real, verified, permanent, and enforceable 

carbon dioxide or carbon dioxide equivalents emission mitigation not 

otherwise required by statute, regulation, or other legal requirements;

 (b) The credits must be acquired after July 1, 2004; and

 (c) The credits may not have been used for other carbon dioxide 

mitigation projects.

 (2) Permanent carbon credits purchased for project mitigation shall not 

be resold unless approved by the council, department, or authority.

[2004 c 224 § 3.]

80.70.040

Direct investment mitigation projects — Enforcement — Federal 

requirements may replace this section.

(1) The carbon dioxide mitigation option that provides for direct investment 

shall be implemented through mitigation projects conducted directly by, or 

under the control of, the certificate holder or order of approval holder.

(2) Mitigation projects must be approved by the council, department, or 

authority, as appropriate, and made a condition of the proposed and final 

site certification agreement or order of approval. Direct investment 

mitigation projects shall be approved if the mitigation projects provide a 

reasonable certainty that the performance requirements of the mitigation 

projects will be achieved and the mitigation projects were implemented after 

July 1, 2004. No certificate holder or order of approval holder shall be 

required to make direct investments that would exceed the cost of making a 

lump sum payment to a third party, had the certificate holder or order of 

approval holder chosen that option under RCW 

80.70.020.

 (3) Mitigation projects must be fully in place within a reasonable time 

after the start of commercial operation. Failure to implement an approved 

mitigation plan is subject to enforcement under chapter 80.50 or 70.94

RCW.

 (4) The certificate holder or order of approval holder may not use more 

than twenty percent of the total funds for the selection, monitoring, and 

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evaluation of mitigation projects and the management and enforcement of 

contracts.

 (5)(a) For facilities under the jurisdiction of the council, the 

implementation of a carbon dioxide mitigation project, other than purchase 

of a carbon credit shall be monitored by an independent entity for 

conformance with the performance requirements of the carbon dioxide 

mitigation plan. The independent entity shall make available the mitigation 

project monitoring results to the council.

 (b) For facilities under the jurisdiction of the department or authority 

pursuant to RCW 80.70.020(1) (b) or (c), the implementation of a carbon 

dioxide mitigation project, other than a purchase of carbon dioxide 

equivalent emission reduction credits, shall be monitored by the department 

or authority issuing the order of approval.

 (6) Upon promulgation of federal requirements for carbon dioxide 

mitigation for fossil-fueled thermal electric generation facilities, those 

requirements may be deemed by the council, department, or authority to be 

equivalent and a replacement for the requirements of this section.

[2004 c 224 § 4.]

80.70.050

Independent qualified organizations with experience in mitigation 

activities — Council oversight — Reports.

(1) The council shall maintain a list of independent qualified organizations 

with proven experience in emissions mitigation activities and a 

demonstrated ability to carry out their activities in an efficient, reliable, and 

cost-effective manner.

 (2) An independent qualified organization shall not use more than twenty 

percent of the total funds for selection, monitoring, and evaluation of 

mitigation projects and the management and enforcement of contracts. 

None of these funds shall be used to lobby federal, state, and local 

agencies, their elected officials, officers, or employees.

 (3) Before signing contracts to purchase offsets with funds from 

certificate holders or order of approval holders, an independent qualified 

organization must demonstrate to the council that the mitigation projects it 

proposes to use provides a reasonable certainty that the performance 

requirements of the carbon dioxide mitigation projects will be achieved.

 (4) The independent qualified organization shall permit the council to 

appoint up to three persons to inspect plans, operation, and compliance 

activities of the organization and to audit financial records and performance 

measures for carbon dioxide mitigation projects using carbon dioxide 

mitigation money paid by certificate holders or order of approval holders 

under this chapter.

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(5) An independent qualified organization must file biennial reports with 

the council, the department, or authority on the performance of carbon 

dioxide mitigation projects, including the amount of carbon dioxide 

reductions achieved and a statement of cost for the mitigation period.

[2004 c 224 § 5.]

80.70.060

Costs to be assessed against applicants and holders of site 

certification agreements.

Reasonable and necessary costs incurred by the council in implementing 

and administering this chapter shall be assessed against applicants and 

holders of site certification agreements that are subject to the requirements 

of this chapter.

[2004 c 224 § 6.]

80.70.070

Rules.

The council, department, and authority shall adopt rules to carry out this 

chapter.

[2004 c 224 § 7.]

80.70.080

Certain applicants for a natural gas-fired generation plant exempt 

from chapter. (Contingent expiration date.)

(1) An applicant for a natural gas-fired generation plant to be constructed in 

a county with a coal-fired electric generation facility subject to RCW 

80.80.040(3)(c) is exempt from this chapter if the application is filed before 

December 31, 2025.

 (2) For the purposes of this section, an applicant means the owner of a 

coal-fired electric generation facility subject to RCW 80.80.040(3)(c).

(3) This section expires December 31, 2025, or when the stationgenerating capability of all natural gas-fired generation plants approved 

under this section equals the station-generating capability from a coal-fired 

electric generation facility subject to RCW 80.80.040(3)(c).

[2011 c 180 § 306.]

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Notes:

Findings -- Purpose -- 2011 c 180: See note following RCW 

80.80.010.

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