Washington’s HB 2215, enacted as Chapter 251, Laws of 2026, effective June 11, 2026, lowers the Climate Commitment Act compliance threshold from 25,000 MT CO2e to 500 MT CO2e for fuel suppliers of gasoline, diesel, biodiesel, or propane that began operating after December 31, 2022, beginning with 2027 emissions. Which threshold applies turns on timing in any jurisdiction – not Washington-market entry: a supplier that began producing, importing, delivering, or selling these fuels anywhere before January 1, 2023, stays at 25,000 MT, while one that began after December 31, 2022, falls under the new 500 MT threshold, measured on its Washington-supplied volumes. Ecology will publish full guidance in the coming weeks. Suppliers who assumed the 25,000 MT threshold protected them should reassess now.
Background: Closing the LLC Loophole
After the Climate Commitment Act took effect, some fuel distributors formed new, smaller entities selling volumes just under the 25,000 MT CO2e coverage threshold, avoiding compliance obligations that applied to their established competitors. HB 2215, sponsored by Rep. Joe Fitzgibbon, closes that pathway. The bill was enacted as Chapter 251, Laws of 2026, with an effective date of June 11, 2026, and a partial gubernatorial veto. Clients should confirm which specific provisions survived the veto when assessing their obligations.
What the Law Changes
- 500 MT threshold for new suppliers: For suppliers of any combination of gasoline, diesel, biodiesel, or propane that began operating after December 31, 2022, in any jurisdiction, the CCA coverage threshold drops to 500 MT CO2e per year, beginning with the second compliance period (2027).
- Legacy suppliers unchanged: Suppliers that participated in the market prior to January 1, 2023, remain at the 25,000 MT CO2e threshold.
- Lubricants out: Lubricants are removed from covered emissions and no longer create a compliance obligation.
- Reporting and rule authority: GHG reporting requirements under Chapter 173-441 WAC are adjusted in parallel for new suppliers, and Ecology has authority to raise or lower the 500 MT threshold by rule to prevent market distortions.
Ecology Implementation
The Department of Ecology has notified Cap-and-Invest market participants of the upcoming changes and will publish full guidance on how the 500 MT threshold applies to importers of gasoline, diesel, biodiesel, and propane in the coming weeks, via its Emissions Reporting and Verification webpage. Ecology’s notification confirms that some participants may remain eligible for the 25,000 MT threshold depending on when their operations began and how their fuel import activities are structured, the forthcoming guidance will define those boundaries.
What This Means by Segment
- New fuel suppliers: If you began operating after December 31, 2022, in any jurisdiction and exceed 500 MT CO2e, you will be considered a covered entity under both GHG reporting and the CCA beginning 2027.
- Biodiesel suppliers that began operating post-2022: Explicitly in scope: biodiesel is one of the four named fuels.
- Legacy suppliers: Not directly affected, but the tightened coverage levels the competitive field.
Action Checklist
- Determine whether the new threshold is applicable to your business – beginning after December 31, 2022, 500 MT threshold applies to new fuel suppliers
- Estimate annual CO2e associated with Washington-supplied gasoline, diesel, biodiesel, and propane against the 500 MT threshold.
- Begin tracking covered emissions data now – the threshold applies to 2027 emissions.
- Remove lubricants from covered-emissions calculations.
- Watch Ecology’s Emissions Reporting page for the implementation guidance, and confirm which provisions survived the partial veto.
Questions about whether the new threshold reaches your business? Trinity’s Clean Fuels Practice provides CCA applicability determinations, emissions quantification, and Ecology reporting support – email Alex Marcucci.
