Washington Targets Last Coal Plant in Pacific Northwest with New Tax

The state aims to keep the Centralia coal plant shut down through a new tax on coal and climate pollution fees.

Mar. 11, 2026 at 8:53pm

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Washington state has passed legislation that targets the last coal-fired power plant in the Pacific Northwest. The new law removes tax and regulatory exemptions for the Centralia plant, making it prohibitively expensive to generate electricity from burning coal. This is part of the state's long-standing plan to phase out coal power by 2025. The move comes in response to a federal order from the Trump administration that aimed to keep the plant operational to mitigate the risk of blackouts, which state officials have challenged in court.

Why it matters

Washington is determined to transition away from coal power and towards cleaner energy sources. This new targeted tax legislation is the latest step in the state's 15-year effort to shut down the Centralia coal plant, which has bipartisan support at the state level. The state is taking on the federal government to uphold its clean energy goals and prevent the plant from being restarted.

The details

The new law signed by Gov. Bob Ferguson removes tax and regulatory exemptions that were previously agreed to as part of a deal to phase out the Centralia plant by 2025. This includes reinstating the state's sales tax on any future coal deliveries and requiring the plant's operator, TransAlta, to purchase climate pollution allowances at the state's cap-and-trade auctions to cover emissions. These costs would make it uneconomical for the plant to restart burning coal.

  • In December 2025, the Centralia plant's remaining coal-fired boiler is scheduled to shut down.
  • The federal emergency order to keep the Centralia plant operational was issued in December 2025, a week after TransAlta announced plans to convert the plant to natural gas by late 2028.

The players

Bob Ferguson

The governor of Washington who signed the legislation targeting the Centralia coal plant.

TransAlta Corporation

The company that owns and operates the Centralia coal-fired power plant in Washington.

Chris Wright

The U.S. Energy Secretary who issued the emergency order to keep the Centralia coal plant operational.

Nick Brown

The Washington state Attorney General who filed a federal court appeal to strike down the Energy Department's pro-coal order.

Matt Boehnke

A Republican state senator in Washington who opposed removing the Centralia plant's favorable tax treatment.

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What they’re saying

“Washington is not going backward on clean energy. (This) keeps the state on track to phase out coal power as we have been planning to do so for the last 15 years.”

— Bob Ferguson, Governor of Washington

“Trying to force Washington to restart a defunct power plant is not only illegal, but would also jeopardize public health. Washington state will not be bullied.”

— Nick Brown, Washington State Attorney General

“We want to make sure we have all options on the table in case of a federal emergency that causes any kind of shutdown, disruption … allowing us to keep the lights on.”

— Matt Boehnke, Republican State Senator

What’s next

The federal Energy Department's emergency order keeping the Centralia plant operational is scheduled to expire next Monday. It remains to be seen whether the agency will renew the order.

The takeaway

Washington is firmly committed to transitioning away from coal power and towards cleaner energy sources, even in the face of federal intervention. The state is using targeted taxes and legal challenges to uphold its long-standing plan to shut down the last coal plant in the Pacific Northwest region.