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### Chapter 80.70 RCW 

### CARBON DIOXIDE MITIGATION Chapter Listing



### RCW Sections 80.70.010 Definitions. 80.70.020 Applicability of chapter -- Carbon dioxide mitigation pl an --

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 cha pter 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-fuel ed 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 ag ency whose jurisdictional boundaries are coextensive with the bound aries of one or more counties. (3) "Carbon credit" means a verified reduction in carbon dioxide or carbon dioxide equivalents that is registered with a stat e, national, or international trading authority or exchange that has b een recognized by the council. Legislature Home | Senate | House of Representatives | Contact Us | Search | Help | Mobile 

### Page **1 of**  **9 Chapter 80.70 RCW: CARBON DIOXIDE MITIGATION** 

**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** (4) "Carbon dioxide equivalents" means a metric measure used to compare the emissions from various greenhouse gases based upo n their global warming potential. (5) "Cogeneration credit" means the carbon dioxide em issions that the council, department, or authority, as appropriate, esti mates would be produced on an annual basis by a stand-alone industrial a nd commercial facility equivalent in operating characteristics and outpu t to the industrial or commercial heating or cooling process component of the coge neration plant. (6) "Cogeneration plant" means a fossil-fueled th ermal power plant in which the heat or steam is also used for industrial or commercial heating or cooling purposes and that meets federal energy regulator y commission standards for qualifying facilities under the public util ity regulatory policies act of 1978. (7) "Commercial operation" means the date that the fi rst electricity produced by a facility is delivered for commercial sale t o the power grid. (8) "Council" means the energy facility site evaluati on council created by RCW 80.50.030

. (9) "Department" means the department of ecology. (10) "Fossil fuel" means natural gas, petroleum, co al, 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 in cludes the process or means to achieve carbon dioxide mitigation through use o f 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 agen t, or by an independent qualified organization to mitigate the emission of car bon 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 alternati ve energy resources, demand side management of electricity consumption, and ca rbon sequestration programs; (b) Direct application of combined heat and power (cog eneration); (c) Verified carbon credits traded on a recogni zed trading authority or exchange; or (d) Enforceable and permanent reductions in carbo n dioxide or carbon dioxide equivalents through process change, equipment shu tdown, or other activities under the control of the applicant and approve d as part of a carbon dioxide mitigation plan. 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** (13) "Order of approval" means an order issued under RCW 70.94.152 with respect to a fossil-fueled thermal electric genera tion facility subject to RCW 80.70.020 (1) (b) or (d). (14) "Permanent" means that emission reductions use d to offset emission increases are assured for the life of the corresp onding increase, whether unlimited or limited in duration. (15) "Qualified alternative energy resource" has th e 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 witho ut exceeding design limits, and measured using maximum continuous electric gen eration capacity, less net auxiliary load, at average ambient temp erature and barometric pressure. (17) "Total carbon dioxide emissions" means: (a) For a fossil-fueled thermal electric generatio n 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 design er's guaranteed total net station generating capability, new equipmentheat rate, an assumed sixty percent capacity factor for facilities under th e council's jurisdiction or sixty percent of the operational limitat ions on facilities subject to an order of approval, and taking into account any en forceable limitations on operational hours or fuel types and use; and (b) For a fossil-fueled thermal electric generatio n 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 generati on capability of the facility prior to the applicant applying for certificati on 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 th e council's jurisdiction or sixty percent of the operational limitat ions on facilities subject to an order of approval, and taking into account any en forceable 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 generatio n facilities with stationgenerating capability of three hundred fifty thousand ki lowatts or more and fossil-fueled floating thermal electric generation facil ities of one hundred thousand kilowatts or more under *RCW 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** 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 generatio n 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 facil ities with stationgenerating capability of three hundred fifty thousand ki lowatts or more that have an existing site certification agreement and, afte r July 1, 2004, apply to the council to increase the output of carbon dioxide em issions by fifteen percent or more through permanent changes in facility op erations or modification or equipment; and (d) Fossil-fueled thermal electric generation faci lities 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, 20 04, apply to the department or authority, as appropriate, to permanen tly modify the facility so as to increase its station-generating capability by at le ast twenty-five thousand kilowatts or to increase the output of carbon di oxide emissions by fifteen percent or more, whichever measure is greater. (2)(a) A proposed site certification agreement su bmitted 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 pla n. (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 appro ved carbon dioxide mitigation plan if the council, department, or author ity, as appropriate, finds that the change meets all requirements and conditions fo r approval of such plans. (3) An applicant for a fossil-fueled thermal ele ctric generation facility shall include one or a combination of the following carbon d ioxide mitigation options as part of its mitigation plan: (a) Payment to a third party to provide mitigati on; (b) Direct purchase of permanent carbon credits; or (c) Investment in applicant-controlled carbon dio xide mitigation projects, including combined heat and power (cogeneration). (4) Fossil-fueled thermal electric generation faci lities that receive site 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** certification approval or an order of approval shall provide mitigation for twenty percent of the total carbon dioxide emissions prod uced by the facility. (5) If the certificate holder or order of approva l 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 mit igated. For a cogeneration plant, the monetary amount is based on the difference between twenty percent of the total carbon dioxide emi ssions 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 ex ceed fifty percent of the current rate. The department or authority shal l use the adjusted rate established by the council pursuant to this subsection for fossil-fueled thermal electric generation facilities subject to the pro visions 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 payme nt amount is determined by multiplying the total carbon dioxide emissi ons by the twenty percent mitigation requirement under subsection (4) of this section and by the per ton mitigation rate established under subsectio n (5) of this section. (b) No later than one hundred twenty days after t he start of commercial operation, the certificate holder or order of approval holder shall make a one -time payment to the independent qualified organizati on 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 secti on 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 o f the following four years. With the initial payment, the certificate holder or order of approval holder shall provide a letter of credit or other comp arable security acceptable to the council or the department for the re maining eighty percent mitigation payment amount including possible changes to t he 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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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** 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, perma nent, and enforceable carbon dioxide or carbon dioxide equivalents emission mitig ation not otherwise required by statute, regulation, or other l egal requirements; (b) The credits must be acquired after July 1, 2004; and (c) The credits may not have been used for other ca rbon dioxide mitigation projects. (2) Permanent carbon credits purchased for project m itigation shall not be resold unless approved by the council, department, or authority. [2004 c 224 § 3.]

80.70.040 Direct investment mitigation projects — Enforcement — F ederal 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. Dire ct investment mitigation projects shall be approved if the mitigatio n projects provide a reasonable certainty that the performance requirements of the mitigation projects will be achieved and the mitigation projects w ere implemented after July 1, 2004. No certificate holder or order of appro val 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 certificat e holder or order of approval holder chosen that option under RCW

80.70.020

. (3) Mitigation projects must be fully in place with in a reasonable time after the start of commercial operation. Failure to im plement an approved mitigation plan is subject to enforcement under chapte r 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 selectio n, monitoring, and 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** evaluation of mitigation projects and the management and enforcement of contracts. (5)(a) For facilities under the jurisdiction of th e council, the implementation of a carbon dioxide mitigation project, other than purchase of a carbon credit shall be monitored by an independententity for conformance with the performance requirements of the carbon dioxide mitigation plan. The independent entity shall make ava ilable 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 generatio n facilities, those requirements may be deemed by the council, department, o r authority to be equivalent and a replacement for the requirements of t his section. [2004 c 224 § 4.]

80.70.050 Independent qualified organizations with experiencein mitigation activities — Council oversight — Reports. (1) The council shall maintain a list of independent qu alified organizations with proven experience in emissions mitigation activities a nd a demonstrated ability to carry out their activities in an e fficient, 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 enforcemen t of contracts. None of these funds shall be used to lobby federal, sta te, 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 ind ependent qualified organization must demonstrate to the council that the m itigation projects it proposes to use provides a reasonable certainty that the pe rformance requirements of the carbon dioxide mitigation projects w ill 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 re cords and performance measures for carbon dioxide mitigation projects using car bon dioxide mitigation money paid by certificate holders or order o f approval holders under this chapter. 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** (5) An independent qualified organization must file b iennial reports with the council, the department, or authority on the perf ormance of carbon dioxide mitigation projects, including the amount of carbon dioxide reductions achieved and a statement of cost for the mitiga tion 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 impl ementing and administering this chapter shall be assessed against ap plicants and holders of site certification agreements that are subje ct to the requirements of this chapter. [2004 c 224 § 6.]

80.70.070 Rules. The council, department, and authority shall adopt rule s to carry out this chapter. [2004 c 224 § 7.]

80.70.080 Certain applicants for a natural gas-fired generati on plant exempt from chapter. (Contingent expiration date.) (1) An applicant for a natural gas-fired generation p lant 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 i s filed before December 31, 2025. (2) For the purposes of this section, an applicantmeans 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 st ationgenerating capability of all natural gas-fired generat ion plants approved under this section equals the station-generating capabil ity from a coal-fired electric generation facility subject to RCW 80.80.040 (3)(c). [2011 c 180 § 306.] 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true** Notes: Findings -- Purpose -- 2011 c 180: See note following RCW 80.80.010

. 

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**5/ 29/** **2014 http://apps.leg.wa.gov/rcw/default.aspx?cite=80.70&full=true**