Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act.

HB 2537 provides free emissions allowances (credits) to specific manufacturing facilities classified as "emissions-intensive and trade-exposed" under Washington’s Climate Commitment Act. It directly affects 13 manufacturing sectors, including metals, paper, aerospace, cement, and petroleum refining, as defined by North American Industry Classification System (NAICS) codes. The bill establishes that qualifying facilities receive allowances based on historical emissions intensity or a mass-based production baseline, with the percentage of free allowances gradually decreasing from 100% (2023-2026) to 94% (2031-2034). This policy modifies how emissions credits are distributed to these facilities during compliance periods, without altering overall emissions caps.