The Climate Commitment Act (CCA) sets a declining cap on greenhouse gas emissions and requires the state’s largest emitters to purchase allowances for their planet-warming pollution. The law requires the Legislature to invest revenue from this cap-and-invest program to reduce emissions and create jobs, including in clean buildings, transportation, and improving community resiliency in the face of climate change.
The CCA centers environmental justice and equity, ensuring communities that bear the greatest burdens from climate change and air pollution today see cleaner, healthier air as the state cuts emissions. Specifically, the CCA requires that no less than 35% of annual investments — with a goal of 40% — must provide direct and meaningful benefits to vulnerable populations in overburdened communities. The act also requires that not less than 10% of CCA investments are supported by a Tribal resolution.
Following the adoption of the 2024 Supplemental budget, across the 2023-25 operating, capital and transportation budgets, the Legislature invested nearly $3.3 billion of CCA revenue. We estimate that of total CCA investments, nearly $1.4 billion, or 42%, are directed to overburdened communities. Nearly $255 million, or 7.8% of CCA funds, are directed specifically to benefit Tribes. Tribal communities are eligible to apply for other CCA-funded programs, and the Legislature invested an additional $209 million of CCA revenues in salmon restoration programs and projects that are important to protect Tribes' culture and treaty rights.
How these estimates were made
OFM produced these estimates by:
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Identifying items and amounts in the enacted budgets specifically directed to overburdened communities and Tribes;
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Identifying appropriations for programs designed to benefit — in whole or in part — overburdened communities, then working with the relevant agency to estimate the portion that will be invested in overburdened communities; and
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Updating estimates based upon actual funding awards to date, where that information was available.
These estimates are based upon the best available information and will be updated as agencies implement programs or legislative changes to the appropriations occur.
The Governor’s Office, Office of Financial Management and cabinet agencies are committed to ensuring that CCA revenues are invested in overburdened communities and Tribes in a manner consistent with the law’s requirements, and that will meaningfully advance environmental justice in these communities.
Investing in overburdened communities
Operating and capital investments
OFM estimates that the enacted operating, capital, and transportation budgets invest nearly $1.4 billion of CCA revenue in creating meaningful benefits for vulnerable populations in overburdened communities. Some of the major investments specifically for overburdened communities in the operating and capital budgets include:
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$90 million in energy vouchers for low- and moderate-income residential electrical consumers.
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$80 million for providing low- and moderate-income households and small businesses rebates to purchase and install high-efficiency electric equipment, like heat pumps, through the High Efficiency Electric Home Rebate Program.
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$55 million for multifamily building energy-efficiency grants.
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$42.4 million for clean energy projects in vulnerable, overburdened and Tribal communities.
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$38.6 million for projects to reduce health disparities in overburdened communities, allocated through a participatory budgeting process.
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$35 million for 2023-25 Weatherization Plus Health to provide financial assistance to low-income households for home energy efficiency and health improvements.
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$26.4 million for capacity grants to Tribes and overburdened communities to support engagement with state agencies implementing the Healthy Environment for All Act and improvement of the Environmental Health Disparities map.
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$25 million to improve air quality in overburdened communities highly impacted by air pollution.
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$35 million for an energy utility bill assistance program for low-income households that includes heating and cooling system tune-ups or replacements to improve efficiency for residential households.
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$10 million to support workplace health and safety for workers in overburdened communities who are affected by the climate crisis, including extreme heat, cold, wildfire smoke, drought, and flooding.
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$18.9 million to support specific projects to reduce greenhouse gas emissions, located in overburdened communities.
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$2.7 million to support members of vulnerable populations to serve in the Washington Climate Corps Network.
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$3.0 million to improve the urban tree canopy for the benefit of vulnerable populations.
Transportation-related investments
The legislature invested CCA revenues in critical programs to reduce emissions from the transportation sector. While many of these programs will fund projects located in overburdened communities, only a few programs are explicitly and solely directed to overburdened communities. For programs that are not explicitly directed to overburdened communities, Washington State Dept. of Transportation (WSDOT) has used project lists, project applications, and analysis of equity and environmental justice tools to estimate the projected investment in overburdened communities.
Key transportation investments expected to benefit vulnerable populations in overburdened communities include:
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$25 million for the Sandy Williams Connecting Communities grant program to improve active transportation connectivity and safer places for people walking, biking, and rolling on and across current and former state highways.
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$41 million for bike and pedestrian grants to improve safety and accessibility of bicycle and pedestrian facilities in overburdened communities.
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$26 million for safe routes to school in overburdened communities. This program provides funds for projects within two miles of a school to improve biking and walking infrastructure resulting in safer access to schools.
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$48 million for grants supporting medium and heavy-duty vehicle zero emission incentives including school bus and commercial vehicles. Although the program is still under design, selected projects will benefit overburdened communities.
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$151 million for transit support grants to support transit agencies serving overburdened communities that adopt a zero-fare policy for youth 18 and under for all modes of transportation provided by the agency, including paratransit.
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$37 million for transit projects in overburdened communities that were included in the 2022 Move Ahead Washington package.
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$53.9 million for special needs transit grants to overburdened communities to sustain or expand services to people with disabilities including seniors and children.
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$40.8 million for green transit grants to fund transit agencies for cost-effective capital projects, such as electric buses, that reduce emissions in overburdened communities.
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$45 million for a bus and bus facility grant program to overburdened communities to fund transit agencies for the replacement, expansion, rehabilitation, and purchase of transit vehicles; modification or rehabilitation of transit facilities; and funding to adapt to change or innovation through the retrofitting of transit vehicles and facilities.
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$45 million for community EV-charging infrastructure grants.
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$3.0 million for an e-bike rebate program for low-income households.
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$3.0 million for EV car-sharing grants for low-income communities.
Investing to benefit Tribes
OFM estimates that the 2023-2025 operating, capital, and transportation budgets designate nearly $255 million (7.8% of CCA funds) for Tribes. Tribal communities are also eligible to apply for other CCA-funded programs.
The Legislature also invested an additional $209 million of CCA revenues in salmon restoration programs and projects that are important to Tribes to protect their culture and treaty rights.
The CCA requires that 10% of CCA investments are supported by a Tribal resolution (RCW 70A.65.230(10(b)). It is anticipated that Tribes will ultimately receive and/or formally support more than 10% of total CCA appropriations. The Governor’s Office and OFM will work with agencies to track progress on meeting this requirement.
Significant CCA investments designated specifically for Tribes include:
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$50 million to assist Tribes in mitigating and adapting to the effects of climate change.
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$25 million for the Quinault Tribe purchase of Legacy Forests
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$21.4 million for capacity grants to Tribes to consult on spending decisions under the CCA and on clean energy siting. The budget notes that applicants are encouraged to include a Tribal resolution supporting the request to meet the requirements of RCW 70A.65.230 (1)(b).
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$10 million for Tribal grants to develop clean energy projects.
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$20 million for the Yakama Nation’s solar project.
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$20 million for the Puyallup Tribe port electrification
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$10 million for Tribal Transit Mobility Grants.
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$10 million for Chief Leschi School HVAC.
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$8.6 million for the Nisqually Indian Tribe microgrid system.
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$7.6 million for the Lummi Indian Business Council energy projects.
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$3 million for the Squaxin Island Tribe Blue Carbon Sequestration project.
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$2.5 million for a Tribal Clean Energy Training Center.
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$500,000 to support cultural resource surveys to protect tribal cultural sites.
Tracking investments to maintain accountability
The accompanying table identifies each CCA investment and shows which investments contribute to meeting the equity requirements.
The CCA requires the Department of Ecology to track and report on all CCA funding, including the purpose of funding, recipient, and any attributable greenhouse gas emission reductions. In 2024, Ecology’s report is due by November 30 and will be posted on the agency’s website. Future reports are due annually in September. In addition, the 2023-2025 operating budget provides $640,000 for Ecology, in consultation with the OFM and the Environmental Justice Council, to track, summarize and report on all CCA investments in overburdened communities and Tribes.
OFM also received $772,000 to work with Ecology on developing a data portal to improve the public’s understanding of investments from CCA accounts. The target launch date for this portal will coincide with Ecology’s report.
Ecology is developing interim guidance to state agencies for the information to be collected for inclusion in the 2024 report. They have initiated rulemaking to establish the information to be collected from agencies effective for the 2025 report.
State agencies that allocate funds or administer grants or programs from CCA accounts must also annually report to the Environmental Justice Council their progress on meeting environmental justice and environmental health goals (RCW 70A.65.030(3)).
Budget tables
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Enacted 2024 Supplemental Operating, Capital and Transportation Budgets: CCA Funds for Overburdened Communities and Tribes
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Enacted 2023-25 Operating, Capital and Transportation Budgets: CCA Funds for Overburdened Communities and Tribes