HB 2642
In CommitteeHouse
Lubricant emissions
Exempting emissions associated with lubricants from coverage under the cap and invest program.
This status may be delayed. See Action History below for the latest updates.
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 removes lubricant-related emissions from Washington’s cap-and-invest program, meaning suppliers and users of lubricants will not have to report or purchase emissions allowances for greenhouse gases released when lubricants are used. The exemption applies broadly—even if a supplier cannot prove the lubricant wasn’t burned or oxidized.
- Adds a new exemption to the state’s cap-and-invest program for emissions from the combustion, oxidation, other process, or end use of a lubricant.
- Explicitly states the exemption applies regardless of whether a supplier can prove the lubricant was not combusted or oxidized — meaning the exemption is automatic and broad.
- Amends RCW 70A.65.080 to clarify that lubricant emissions (as defined in federal EPA regulation 40 C.F.R. § 98.6) are excluded from the list of covered emissions.
- Reinforces that this exemption applies even if emissions from lubricants would otherwise meet the reporting thresholds for covered entities.
Who is affected
- Lubricant suppliers — Lubricant suppliers will no longer be required to report or purchase emissions allowances for greenhouse gases released during the use (e.g., combustion or oxidation) of lubricants, even if those emissions are otherwise reportable under state rules.
- Washington Department of Ecology — The Washington Department of Ecology will no longer include lubricant-related emissions in its cap-and-invest program coverage, simplifying compliance reporting for affected businesses.
- Businesses using lubricants — Businesses that use lubricants (e.g., manufacturers, transportation companies) may benefit indirectly from reduced administrative burden or costs if their lubricant suppliers pass on savings, though the bill does not directly change their compliance obligations.
Pro/Con Analysis
Potential Benefits (2)
Lubricant suppliers and large industrial users (e.g., logistics, manufacturing, transportation) will no longer face administrative or compliance costs related to tracking, reporting, or purchasing allowances for lubricant emissions, reducing regulatory burden and potentially lowering operational costs.
Business & EmploymentRef: Sec. 1, new subsection (7)(h) to RCW 70A.65.080The Washington Department of Ecology will experience reduced administrative burden and lower enforcement costs, as fewer entities will be required to report lubricant-related emissions and purchase allowances, allowing the agency to reallocate resources to higher-priority sources.
Local GovernmentRef: Sec. 1, new subsection (7)(h) to RCW 70A.65.080
Potential Concerns (3)
Exempting lubricant emissions from the cap-and-invest program reduces the program’s coverage of greenhouse gas emissions, undermining Washington’s statutory GHG reduction targets (RCW 70A.45.020) and potentially increasing overall emissions relative to the state’s climate goals. Lubricant use—especially in heavy transport, construction, and industrial machinery—does result in measurable CO₂ and non-CO₂ emissions from combustion and oxidation, and the exemption removes a source of emissions that would otherwise be priced and capped.
EnvironmentRef: Sec. 1, new subsection (7)(h) to RCW 70A.65.080By removing regulatory oversight over lubricant-related emissions, the bill may reduce incentives for developing or adopting lower-emission lubricants or more efficient lubricant-use practices, potentially weakening air quality improvements in industrial and high-traffic corridors where fine particulate matter and ozone precursors are already concerns.
Public SafetyRef: Sec. 1, new subsection (7)(h) to RCW 70A.65.080Local governments that rely on state environmental funding or participate in regional air quality initiatives may face indirect costs if the state’s overall emissions reduction progress slows, potentially requiring additional local investment in monitoring or mitigation programs to meet federal air quality standards.
Local GovernmentRef: Sec. 1, new subsection (7)(h) to RCW 70A.65.080
Who Is Most Affected
Lubricant suppliers (e.g., Shell, ExxonMobil, independent blenders) will no longer be required to track or pay for emissions allowances tied to lubricant use, reducing compliance costs and potentially increasing profit margins. However, they may face reputational or market pressures if customers or consumers perceive the exemption as undermining climate commitments.
Large industrial users (e.g., trucking fleets, ports, manufacturing plants) benefit indirectly through lower input costs if lubricant suppliers pass on savings, and through reduced administrative complexity. However, they may face future regulatory risk if the exemption is reversed or if federal rules tighten.
The Department of Ecology gains administrative efficiency and reduced enforcement burden, but its ability to meet statutory GHG reduction targets may be compromised, potentially triggering legislative or judicial scrutiny over program integrity.
Everyday Washingtonians may face modest long-term costs if the exemption slows progress toward climate goals, leading to higher future compliance costs, increased climate-related disasters, or reduced air quality in industrial areas. However, no immediate financial impact is expected for households.
Environmental justice communities near ports, rail yards, and industrial zones may see less improvement in air quality than would occur under full cap-and-invest coverage, as lubricant emissions contribute to localized pollution burdens in these areas.