Concerning climate commitment act compliance obligations for fuels supplied or otherwise sold into Washington.

Changed the bill title from 'Second Substitute' to 'Engrossed Second Substitute' to indicate its final legislative status.

Added a requirement that any rule adjusting emission thresholds must take effect at least one year after the rulemaking begins and no earlier than January 1st of the following year.

Replaced a blanket ban on unregistered or non-compliant fuel sellers with a three-part eligibility test, allowing sellers to qualify if they are registered/compliant, have emissions below the threshold but still report them, or can document that compliance costs are included in fuel prices.

Added a specific definition for 'municipality' to clarify which local governments are subject to the contract eligibility rules.

Changed the threshold for existing fuel suppliers from a flat 500 metric tons to 10,000 metric tons if they began operations before January 1, 2023, to prevent competitive disadvantages for established businesses.

Created a new category for suppliers starting on or after January 1, 2023, which must meet a 500 metric ton threshold to become covered entities.

Updated reporting rules to exclude emissions from fossil fuels sold by suppliers not already subject to specific thresholds, clarifying which entities must report greenhouse gas data.

Extended the deadline for submitting emissions reports from March 31 to June 1 for certain years (2024-2030) if timely reporting is infeasible due to third-party data delays.

The committee sponsoring the bill changed from Environment & Energy to Appropriations, and the reading date was updated to reflect the new legislative session timeline.

Thresholds for becoming a 'covered entity' were increased and modified; for example, new entrants must now report emissions of 500 metric tons or more starting in 2027, and existing suppliers must demonstrate 25,000 metric tons of emissions.

A new exemption was added for emissions from the combustion or use of lubricants starting January 1, 2027.

The act description was updated to include amendments to RCW 70A.65.200 and the addition of a new section to chapter 39.26 RCW, reflecting a shift toward procurement and funding oversight.

New requirements were added to the public roster of covered entities to identify fuel sellers described in the new RCW 70A.65.200.

Reporting deadlines were adjusted, with a provision allowing the department to delay reporting for years 2024 through 2030 if third-party data collection is infeasible.

A new section prohibits state agencies and municipalities from contracting with fuel sellers who are not registered with the department or are out of compliance.

New provisions preempt local and state efforts to implement carbon taxes or emissions caps on stationary sources, reserving this authority for the state climate program.

New penalties were introduced, including a four-allowance penalty for missing compliance instruments and monetary fines up to $10,000 per day for failure to submit penalties.

The original emergency clause and invalidity provision were replaced with new sections that take effect immediately and address the new procurement and preemption requirements.