WMB · 10-Q · 2026Q3 · Full report

Environmental Credit Regulation

WILLIAMS COMPANIES, INC. · 2026-11-02 · Importance 17 · Surprise 24

In May 2026, the FASB issued ASU 2026-02, establishing accounting guidance for environmental credits and related obligations. The standard is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. Williams is evaluating the impact, which it expects to relate primarily to NWP’s compliance with Washington State’s Climate Commitment Act; the filing does not quantify the expected cost.

Key facts

• ASU 2026-02 on environmental credits and environmental credit obligations was issued in May 2026 and is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years; early adoption is permitted.
• Williams expects ASU 2026-02 on environmental credits to primarily relate to NWP's compliance with the Washington State Climate Commitment Act.