Concerning the compliance obligation under the climate commitment act for certain municipal gas utilities.

HB 1856 creates an alternative pathway for small municipal gas utilities (those with pre-2022 emissions under 27,000 metric tons of carbon dioxide equivalent) to meet climate goals under Washington’s Climate Commitment Act. These utilities can opt out of standard compliance by submitting a plan by September 1, 2025, demonstrating they will reduce emissions below 22,500 tons annually by 2030 while spending funds equivalent to their standard compliance costs. If they miss the 2030 target, they revert to full compliance and pay penalties for each ton of emissions exceeding the threshold from 2026-2030. The bill adjusts the state’s emissions program rules for 2026 onward if utilities choose this pathway, ensuring continued emissions accountability.