Local news outlets reported on December 27, 2007 that Energy Northwest has abandoned its plan to explore CCS at its proposed Pacific Mountain Energy Center near Kalama, Washington. In November, the state's Energy Facility Site Evaluation Council suspended Energy Northwest's permit application for the coal-fired plant until Energy Northwest put in place a specific plan for CCS at the facility and either implemented it, or attempted to implement it and found it infeasible to do so. The Council's decision was based on a Washington statute (W.R.C. 80.80 et seq.) requiring new facilities generating more than 1100 pounds of greenhouse gases per megawatt hour of electricity to geologically sequester greenhouse gases to achieve such "ceiling." Only after a "good faith effort" to implement the plan could an applicant who finds implementation "not feasible" be allowed to purchase offsets as an alternative

Energy Northwest had responded that the type of plan required by the statute is currently impossible to prepare based on the technological and economic infeasibility of conducting CCS. The company instead presented a proposal to prepare a specific plan at a later date, perhaps as late as 2020, when CCS becomes a proven technology and a number of associated uncertainties (including legal uncertainties) have been resolved.

In December, Energy Northwest asked the Council to clarify its order; the Council's response, issued on December 21, found Energy Northwest's position "to be contrary to the clear meaning of the statute." Energy Northwest has announced plans to submit a revised project proposal within 60 days, and has indicated that it will reconfigure the $1.5 billion project with a different operations plan to bring it within the statutory emissions cap. A company statement read, "We regret the necessity to eliminate the potential sequestration component, believing that PMEC could have contributed a great deal to the advancement of permanent geologic sequestration of greenhouse gases."