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Beginning January 2023, the Washington Department of Ecology (Ecology) will begin launchingWashington&rsquo;s first comprehensive greenhouse gas (GHG) cap-and-invest program. In May 2021 Ecologywas tasked with leading the effort to design and implement a comprehensive carbon reductionprogram, per mandates in the new Climate Commitment Act (CCA) (Chapter 70A.65 RCW) of 2021. Thegoal of the CCA, combined with other climate policies, is to facilitate meeting Washington&rsquo;s goal of netzero GHG emissions by 2050.Generally, facilities emitting greater than 25,000 metric tons of CO2 equivalent per year will be coveredby the program. Consequently, Grays Harbor Energy (GHE) has asked EFSEC to confirm that itscompliance with Washington State&rsquo;s CCA&mdash;will fully satisfy the company&rsquo;s obligation under its currentgreenhouse gas mitigation plan (GHG plan) that was approved by EFSEC in 2003.GHE&rsquo;s GHG plan was required as a condition of EFSEC&rsquo;s approval of an SCA amendment in 2001- thatamendment authorized increases to facility generating capacity from 490 megawatts to 650 megawatts,and its potential greenhouse gas emissions by 10%, when compared with the facility capacity originallyapproved in 1996.At the time, there was no statewide GHG reduction program that EFSEC could look to for addressingGHG emissions associated with the 2001 SCA Amendment. Thus the GHE greenhouse gas mitigationplan that resulted represents an early effort by EFSEC to require an energy facility to address theimpacts of a portion of its anticipated carbon emissions. EFSEC realized this relatively novel GHG planwould eventually be replaced by comprehensive state or federal laws addressing greenhouse gases. Inanticipation of this EFSEC approved language in the GHG plan providing for its &ldquo;sunset&rdquo; or conclusion inthat event.As discussed above, the CCA represents a comprehensive approach to greenhouse gas emission pricingand phased reduction of statewide emissions. Based on our review of the intent of the CCA and itsprogrammatic design and implementation, Staff believes the new law is consistent with the type ofcarbon reduction regulation EFSEC anticipated in the GHG Plan&rsquo;s sunset provision.Page 2 of 7EFSEC Staff recommends that the Council direct Staff to develop a resolution, to be voted on by theCouncil at its next public meeting, confirming that GHE&rsquo;s purchase of allowances under the ClimateCommitment Act will satisfy the company&rsquo;s obligations under the GHG plan that was approved by EFSECin 2003.

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