Concerning the compliance obligation under the climate commitment act for certain municipal gas utilities.

SB 5698 creates an alternative compliance pathway for small municipal gas utilities in Washington that emitted under 27,000 metric tons of CO2 equivalent annually before 2022. These utilities can opt out of the standard climate program by submitting a detailed emissions reduction plan by September 1, 2025, demonstrating they will cut emissions below 22,500 tons annually by 2030 while spending at least as much on reductions as required under the standard program. If they miss the 2030 target or exceed 22,500 tons after 2030, they must revert to full compliance and pay penalties for each ton short. The bill directly affects qualifying small municipal gas utilities, adjusting their obligations under Washington’s Climate Commitment Act without changing requirements for larger entities.