Washington state is still eyeing 2027for when it could join the Western Climate Initiative (WCI) carbon market, despite numerous regulatory and political hurdles, the state's Department of Ecology said on Wednesday.
Ecology estimates its cap-and-invest program could join the WCI before the state's 1 November 2027 deadline for regulated participants to cover their outstanding emissions for 2023-26, the agency said at a public hearing on the recent draft linkage agreement.
Current WCI partners California and Quebec are working to amend their respective program regulations this year. Both have indicated they prefer to finish their work first before fully turning their attention to linkage with Washington. But that does not mean that regulators from California, Quebec and Washington are not also advancing their required steps for linkage in parallel to any regulatory changes.
"We expect we could complete the linkage agreement in 2026 and link in 2027, and this is including discussions with California and Quebec," Ecology senior planner for linkage Stephanie Potts said.
Quebec's link with the California cap-and-trade program took more than a year to finalize, after work started in 2014, while the process with former WCI member Ontario took just months before it joined at the start of 2018.
Ecology must also finish its current rulemaking to align the state's program with the WCI, with a final proposal expected in spring and adoption in summer.
The agency must also finalize the required environmental justice assessment (EJA), Climate Commitment Act linkage criteria findings and then formally decide to link.
California and Quebec will also need to amend their regulations to accept Washington Carbon Allowances (WCAs). California also requires a linkage report and findings from the governor's office to evaluate the stringency of Washington's cap-and-invest program.
One new area of consideration is the shared electricity market between Washington and California. Both states need to align their coverage for electric power entities and their greenhouse gas (GHG) emissions, ensuring neither has an advantage over the other, Potts said.
Washington is working on regulations for imported electricity in its program as part of its linkage-related rulemaking.
Quebec remains a point of uncertainty in the process. The province's environment ministry again delayed publishing its draft amendments earlier this month, while the new premier, Christine Frechette of Coalition Avenir Quebec (CAQ), forms her government.
Quebec is also holding a general election on 5 October, which looks likely to change political leadership in the province. A Leger-Quebecor poll of roughly 1,000 eligible voters over 17-20 April shows Parti Quebecois at 31pc of support, with CAQ trailing in third place at 17pc.
California will also hold its election on 3 November to replace governor Gavin Newsom (D), who is ending his final term this year.
"Changes in government have not inhibited staff from continuing to work together on this process, to share information and move the process forward," Potts said.
Ecology will hold another public hearing on its draft linkage agreement on 22 April and is accepting public comment through 6 May.
