SB 6172
In CommitteeSenate
Coal-fired electric plant
Eliminating preferential treatment related to a coal-fired electric generating plant.
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 special legal protections for coal-fired power plants in Washington, ending their exemption from greenhouse gas regulations after 2025. It also expands the state’s cap-and-trade program to include fossil fuel suppliers, electricity importers, and railroads, and eliminates tax exemptions for coal used in power generation.
- Removes the legal exemption that prevented state agencies from imposing greenhouse gas rules on certain coal-fired power plants after December 31, 2025.
- Expands the definition of 'covered entities' under the state’s greenhouse gas cap-and-trade program to include fossil fuel suppliers (including coal and natural gas), electricity importers, and railroads—based on emissions thresholds.
- Eliminates state tax exemptions for coal used in coal-fired power plants (repealing RCW 82.08.811 and 82.12.811).
- Clarifies that coal-fired plants operating after 2025 must comply with greenhouse gas regulations, unless specifically exempted (e.g., under existing agreements).
- Adds new rules for how emissions from imported electricity are counted and assigned to electricity importers, especially for electricity from federal power marketing administrations.
Who is affected
- Operators of coal-fired electric generation facilities — Coal-fired power plants operating in Washington that were in service before July 22, 2011, and are still operating after December 31, 2025, will no longer be exempt from greenhouse gas regulations starting in 2026.
- Fossil fuel suppliers and distributors — Businesses that supply coal, natural gas, or other fossil fuels to Washington customers may now be required to meet greenhouse gas compliance obligations if their emissions exceed 25,000 metric tons of CO₂ equivalent annually.
- Electric utilities importing power into Washington — Electric utilities that import electricity into Washington may be required to track and reduce emissions tied to that imported power, depending on its source and emissions level.
- Railroad companies — Railroad companies with emissions over 25,000 metric tons of CO₂ equivalent in 2027 or 2028 will be required to participate in the state’s greenhouse gas cap-and-trade program starting in the third compliance period.
- Farm fuel users — Agricultural users who buy fuel for farming operations may continue to be exempt from fuel taxes and emissions reporting for certain fuel uses, with an expanded exemption for transport of agricultural products until 2029.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Ending coal tax exemptions and expanding cap-and-trade to fossil fuel suppliers will reduce CO₂ emissions by disincentivizing coal use and encouraging cleaner alternatives—benefiting public health, especially for communities near coal plants (e.g., Vancouver, Pasco) who face higher particulate pollution.
EnvironmentPeopleRef: Sec. 1(1)(d), (e); Sec. 3Covering railroads and fossil fuel suppliers in cap-and-trade creates economy-wide emissions accountability, reducing regional air toxics (e.g., benzene, NOₓ) that disproportionately impact frontline communities near freight corridors (I-5, Pasco railyards).
EnvironmentPeopleRef: Sec. 1(1)(d), (e); Sec. 1(3)Mandating emissions tracking for imported electricity encourages utilities to shift toward cleaner sources (e.g., wind, solar), reducing long-term health costs from air pollution—especially beneficial for children and elderly in high-pollution areas.
Public SafetyPeopleRef: Sec. 1(1)(c)(iii); Sec. 1(2)Revenue from coal tax repeal and cap-and-trade allowance sales can fund clean energy transitions and workforce retraining—targeted support for coal-affected workers and communities (e.g., Centralia workforce retraining programs).
FinancialPeopleRef: Sec. 1(1)(d), (e); Sec. 3Expanded farm fuel exemption for agricultural product transport until 2029 provides temporary relief for small-to-mid-sized farms and truckers—though this is a limited, time-bound benefit and does not offset broader fossil fuel compliance costs.
Business & EmploymentPeopleRef: Sec. 1(7)(e)(ii)
Potential Concerns (5)
Elimination of coal tax exemptions will raise fuel costs for coal-fired power plants, likely passed through to consumers via higher electricity rates—especially impactful for low- and middle-income households in regions reliant on coal generation (e.g., Pacificorp’s Centralia plants).
FinancialPeopleRef: Sec. 1(1)(d), (e); Sec. 3 (repeal of RCW 82.08.811 & 82.12.811)Coal plants and fossil fuel suppliers face new compliance costs under cap-and-trade, potentially accelerating early retirement of coal facilities and reducing short-term jobs in coal-dependent communities like Centralia and Eltopia—though transition plans may mitigate this.
Business & EmploymentPeopleRef: Sec. 1(1)(c)(i)-(iii); Sec. 1(3)Fossil fuel suppliers (coal, natural gas) and railroads above 25,000 mtCO₂e thresholds must now buy allowances or reduce emissions—costs likely passed to downstream industries (e.g., agriculture, freight), raising operational expenses for small-to-mid-sized businesses.
Business & EmploymentPeopleRef: Sec. 1(1)(d), (e); Sec. 3If coal plants retire earlier than planned due to compliance costs, reduced grid reliability could increase blackout risk in winter peaks—particularly in Eastern Washington where hydro and wind supply is variable.
Public SafetyLean peopleRef: Sec. 1(1)(c)(iii); Sec. 1(1)(d), (e)Electric utilities importing high-emission power (e.g., from Intermountain Power Project) may face new compliance obligations, potentially raising electricity costs for municipal utilities and co-ops serving rural communities.
Business & EmploymentLean peopleRef: Sec. 1(1)(c)(i)-(iii)
Who Is Most Affected
Coal plant operators (e.g., Pacificorp) face higher compliance costs and likely earlier plant retirements, reducing long-term revenue but avoiding future regulatory penalties—mixed impact depending on transition support.
Fossil fuel suppliers (coal, natural gas) must now track and reduce emissions or buy allowances—costs may be passed to consumers, but early movers may gain competitive advantage in clean fuel markets.
Utilities importing high-emission power face new compliance obligations, potentially raising procurement costs—but also incentivizes contracts with cleaner generators, improving long-term grid resilience.
Railroads above 25,000 mtCO₂e must join cap-and-trade—costly short-term, but may accelerate fleet modernization and reduce long-term fuel volatility risks.
Low-income and frontline communities near coal plants and freight corridors benefit from reduced air pollution and potential job retraining—though they may face short-term electricity rate increases.