States are sometimes overlooked as drivers of climate action, yet some of them have been true leaders that bring significant influence. In Washington State, for instance, a strong coalition has worked to develop a smart, foundational climate policy for decarbonization in all sectors of the state’s economy.

But the strength of the policies that have been achieved in Washington are only part of the story. The ways in which environmental organizations, community and environmental justice groups, labor, businesses, and others have agreed to move forward together made these policy advances possible. Notably, this has been achieved in ways that strengthen workers’ rights, and improve the quality of life for vulnerable Washingtonians. This coalition’s work to pass groundbreaking policy has set the stage for impacts that extend far beyond the state’s borders.

Robust Policy

Washington State’s Clean Energy Transformation Act (CETA) has been heralded as one of the strongest 100 percent clean electricity bills in the country. To meet its commitment to achieving 100 percent clean electricity in the state by 2045, CETA also built in intermediate goals including a “no coal” standard by 2025, and a greenhouse gas-neutral standard by 2030. Washington was not the first state to pass such a bill, and its adoption of a requirement in 2019 that utilities supply 100 percent clean electricity by 2045 aligns with efforts in other states such as Hawaii, California, and New Mexico.

So what makes Washington state’s legislation different? CETA is unique in writing solid workforce and equity provisions into law on top of the act’s clean electricity requirements, offering an example for broader action that other governments might emulate.

First, the new Washington law established tax incentives for clean energy projects that increase in value when they meet designated criteria on job quality and community benefits. The highest tier of incentive kicks in when projects are developed under a community benefit agreement or project labor agreement. This provision of CETA came about as a result of negotiation and collaboration between building and construction unions, energy developers, and the environmental community. And this sliding scale for incentives sends a clear message that the State of Washington prioritizes projects that pay good, family-level wages, hire local workers, and provide other tangible benefits to workers and communities.

Equity provisions are also at the center of CETA. The law requires that utilities consider vulnerable populations and highly impacted communities in their planning—and ensure that the benefits of their activities will be equitably distributed. Utilities are also required to provide energy assistance to low-income households, which can take the form of bill assistance, as well as weatherization and energy efficiency support. These provisions of the law seek to ensure that the benefits of clean energy projects flow to communities that are currently disproportionately impacted by pollution and impacts of climate change. Such communities also may have lower incomes, which limits their ability to install new clean energy technology or to adapt to extreme weather and other climate impacts. Engaging these communities in planning clean energy projects and directing at least 40 percent of investments to benefit these communities are cornerstones of the equitable approach envisioned by the state’s government.

Creating a Diverse Multi-Stakeholder Coalition

CETA’s simultaneous focus on the public benefits of a clean power grid and significant economic outcomes and equity for workers and communities across the state is no coincidence. Rather, it was the product of many years of intentionally building a coalition of diverse stakeholders to help shape the policy and ensure that it passed.

Over the course of many years in Washington State, environmental groups expanded beyond their traditional partnerships, and began to advocate for clean energy and climate action in coordination with labor unions, environmental justice and community organizations, businesses, and faith organizations. The aim of these collaborations was not only to create better policies, but also to build a strong coalition of advocates to ensure passage in the state legislature, and signature into law by the Governor.

This process behind CETA’s adoption was long and not without controversies, which is to be expected when forging a diverse coalition with representatives from different communities with varied interests that do not always align. For instance, how clean energy will replace fossil-fuel generated energy has vast impacts for workers in that sector. Consideration for these workers takes time and thoughtfulness, as well as the resources to ensure no one is left behind. Even the concept of incentivizing projects that met higher labor standards took time, because some environmental advocates saw any additional project costs as a reduction in the dollars made available for more clean energy.

However, over time, coalition partners aligned around the idea that a transition to clean energy is essential. Yet they saw a bigger picture as well. Such a significant transition is about more than energy, and it can be harnessed to improve social, economic, and health outcomes.

Thanks to a strong group of stakeholders who had invested in building relationships and understanding over multiple years, CETA became law in Washington state. Ultimately, the final policy now enshrined in the law was something that many people from a wide variety of backgrounds and sectors were able to get behind and help make happen.

Building on the Foundation

CETA was only the beginning in Washington state, which has built on this foundation with additional climate laws including the Climate Commitment Act (cap-and-invest), a Clean Fuel Standard, and a Zero Emission Vehicle Standard. The law now serves as the foundation for other climate policies in the transportation and building sectors that rely on clean electricity to produce the deep emissions reductions we need.

For instance, a common refrain among many in the broader climate community has been: “Electrify everything!” And as we remove fossil fuels from transportation and our homes and buildings, these sectors will increasingly electrify. Yet in order to meet our imperative climate goals , the electricity that supplants oil and gas must also  be clean. Current research on how to decarbonize Washington and Oregon’s on-road transportation shows that without 100 percent clean electricity by 2045, it will not be possible to meet these states’ climate goals.

Thus, the key to making climate progress in our homes and in our various modes of transportation ultimately hinges on accessing clean electricity. CETA is therefore foundational for Washington’s climate progress, and for much of its climate policy, while also serving as an example of how clean electricity policy, and all climate policy, can also serve broader aims around workers’ rights and protecting those with lower incomes.

The Impacts of Innovation

It’s hard to believe the impact that the CETA has made in less than three-and-a-half years. Though CETA was not the first state-driven 100 percent clean electricity policy, its innovative labor and equity provisions are drawing attention from policymakers around the country. Some of the law’s policy design elements have been emulated elsewhere, and tailored to meet the specific contexts of those states.

For example, Illinois recently passed a Climate and Equitable Jobs Act, which sets a state policy to achieve 100 percent clean electricity by 2050. Its new law also requires project labor agreements for utility-scale renewable projects, investments in workforce development, and  enhanced consumer protections. The passage of the federal landmark Inflation Reduction Act (IRA), which incentivizes prevailing wages via expanded tax credits, led some climate journalists to draw a direct connection back to CETA.

And the ripples are growing as more states pass their own 100 percent clean electricity laws with provisions to protect low-income residents and to ensure good jobs for workers in the clean energy sector. We also are starting to see echoes of this holistic approach at the federal government, which has begun to combine historic climate investments with incentives benefiting workers, domestic manufacturing requirements, and low-income protections.

CETA has set a powerful example for the nation. And while the specific policies adopted across the country will vary,  one lesson is clear: it is essential to bring a diverse set of stakeholders together to help identify the challenges and solutions that best meet the needs of each constituency. Meaningful engagement of communities in crafting solutions is a critical ingredient in creating winning climate policies with multiple benefits.

Since CETA’s passage in 2019, we’ve seen a lot of action that builds on its successes. There is considerable excitement to see what comes next as the federal and state governments continue to learn from each other and expand on this approach.