HB 2367
SignedHouse
Coal-fired electric plant
Eliminating preferential treatment related to a coal-fired electric generating plant.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill ends special legal and tax protections for coal-fired power plants in Washington, ensuring they are treated like other large polluters under the state’s greenhouse gas regulations starting in 2026. It removes exemptions that previously shielded coal plants from certain regulations and taxes, and clarifies how emissions from these plants will be counted and managed under state climate laws.
- Removes the legal protection that previously prevented state agencies from imposing greenhouse gas regulations on coal-fired power plants after December 31, 2025.
- Eliminates tax exemptions for coal used in electric generation (repealing RCW 82.08.811 and 82.12.811), meaning sales and use taxes will apply to coal purchases for power generation.
- Expands the definition of 'covered entities' under the state’s greenhouse gas cap-and-invest program to include more electricity importers and fossil fuel suppliers, including those with coal-based operations.
- Requires that greenhouse gas emissions from coal plants after 2025 be subject to the same regulatory review and mitigation requirements as other large emitters.
- Prohibits denial of permits solely because a facility’s emissions are covered under the state’s greenhouse gas program, but requires emissions to be included in environmental review.
Who is affected
- Operators of coal-fired electric generation plants and other large fossil fuel users — The state's largest fossil fuel users and electricity importers — especially those operating or importing from coal-fired power plants — will lose certain legal protections and may face stricter greenhouse gas compliance requirements starting in 2026.
- Electric utilities with coal-based generation contracts — Electric utilities that rely on coal-generated power (especially those with long-term coal transition power contracts) will no longer be exempt from state greenhouse gas regulations after December 31, 2025.
- Coal suppliers and industrial coal users — Coal suppliers and users (e.g., industrial facilities using coal) will lose tax exemptions previously available for coal used in power generation, potentially increasing their operating costs.
- State and local permitting agencies — State agencies and local governments will need to adjust permitting and regulatory processes to ensure greenhouse gas analysis does not block permits for new or expanded facilities solely based on covered emissions.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
By including all imported electricity with measurable emissions in the cap-and-invest program and requiring emissions to be part of environmental review, the bill reduces Washington’s carbon footprint—including emissions embedded in imported power—and prevents 'leakage' of pollution out of state.
EnvironmentPeopleRef: Sec. 1(1)(c)(i)(B) (coverage of unspecified electricity imports >0 MtCO2e) and Sec. 1(9)(d) (emissions not basis for permit denial, but must be included in review)Eliminating coal tax exemptions generates new state revenue (from sales/use taxes on coal purchases) that can fund clean energy transitions and community reinvestment in affected regions, reducing reliance on regressive taxes and supporting climate equity.
FinancialPeopleRef: Sec. 3 (repeal of coal tax exemptions) and Fiscal Impact sectionExpanding the cap-and-invest program to fossil fuel suppliers and requiring life-cycle analysis for new facilities closes loopholes that previously allowed high-emission imports and projects to avoid accountability, strengthening Washington’s climate leadership.
EnvironmentPeopleRef: Sec. 1(1)(a)-(d) (expansion of covered entities to include fossil fuel suppliers and electricity importers) and Sec. 1(9)(c) (life-cycle analysis requirement)While ending preferential treatment for coal, the bill allows new clean-energy facilities to meet mitigation obligations through allowance purchases—supporting investment in clean tech and avoiding regulatory paralysis for low-carbon projects.
Business & EmploymentPeopleRef: Sec. 1(9)(d) (prohibition on permit denial solely due to covered emissions) and Sec. 1(9)(e) (mitigation via compliance instruments)Ending legal protections for coal plants ensures they are held to the same emissions standards as other large polluters, accelerating retirement of aging, high-pollution facilities and reducing long-term health burdens—especially for frontline communities near plants.
Public SafetyPeopleRef: Sec. 2 (sunset of coal plant protections after 12/31/2025) and Sec. 1(7)(c) (exemption only for pre-2026 coal emissions)
Potential Concerns (4)
Coal plant operators and utilities with long-term coal contracts face increased compliance costs and potential stranded asset risks as they lose legal exemptions from greenhouse gas regulations after 2025, potentially leading to earlier plant retirements and job losses in coal-dependent communities.
Business & EmploymentPeopleRef: Sec. 2 (new language: 'This section does not apply after December 31, 2025...') and Sec. 1(1)(c)(i)(C) (expansion of covered entities to include coal-based imports)Coal suppliers and utilities will lose sales and use tax exemptions on coal purchases, raising their operating costs; while this increases state revenue, it may be passed on to ratepayers through higher electricity prices in the short term, especially for low-income households still reliant on coal-generated power.
FinancialPeopleRef: Sec. 3 (repeal of RCW 82.08.811 and 82.12.811)The bill’s grandfathering of pre-2026 coal emissions and permit protections may delay meaningful emissions reductions during the 2026–2028 transition, potentially prolonging exposure to air pollutants (e.g., PM2.5, SO₂) near coal plants in communities like Grays Harbor and Pacific County.
Public SafetyLean peopleRef: Sec. 1(7)(c) (exemption for pre-2026 coal emissions) and Sec. 1(9)(d) (prohibition on permit denial solely due to covered emissions)Local governments in coal-dependent counties (e.g., Pacific, Grays Harbor) may face budget uncertainty if coal use declines faster than projected, reducing local tax revenue—though the state gains new baseline revenue from taxed coal purchases.
Local GovernmentLean peopleRef: Fiscal Impact section (uncertain revenue from coal tax changes)
Who Is Most Affected
Operators of coal plants (e.g., TransAlta, Puget Sound Energy) face increased compliance costs and likely earlier retirement of remaining coal units, but gain regulatory clarity and can mitigate via allowance purchases.
Utilities importing coal-based power (e.g., via long-term contracts) lose legal exemptions and must now comply with cap-and-invest, raising costs but also incentivizing clean energy procurement.
Coal suppliers lose tax exemptions, raising input costs, but the policy accelerates the transition to cleaner fuels—potentially harming short-term profits while creating long-term market uncertainty.
Communities near coal plants (e.g., Pacific County, Grays Harbor) benefit from reduced air pollution and health risks, and may gain from reinvestment in clean energy jobs—though some face job losses during transition.
State and local permitting agencies gain clarity on how to include emissions in reviews without blocking projects, but must adjust processes to comply with new statutory requirements.