Washington Administrative Code › Title 173 - Ecology, Department of (See also Titles 197, 317, 372, and 508) › Chapter 173-446 - Climate Commitment Act program rule › ALLOWANCE AUCTIONS › Section 173-446-300 - Auctions of current and prior year allowances

Current through Register Vol. 24-14, July 15, 2024
(1) Each year starting
				in 2023, ecology shall submit allowances for the purpose of auctions to be held
				on four separate occasions, each consisting of a single round of
				bidding.
(2) Only the following
				allowances shall be auctioned:
(a) Allowances
				reserved by ecology for the purpose of auctions;
(b) Allowances consigned to auction by
				electric utilities and natural gas utilities as follows:
(i) Electric utilities may choose at any time
				to consign up to 100 percent of their allowances to auction. During the first
				compliance period, electric utilities may choose whether or not to consign no
				cost allowances to auction, and if so, how many allowances to consign. All
				proceeds from the auction of allowances consigned by electric utilities will be
				used for the benefit of ratepayers, which, for investor-owned utilities, will
				be determined by the utilities and transportation commission, and with the
				first priority the mitigation of any rate impacts to low-income
				customers.
(ii) Natural gas
				utilities may choose at any time to consign up to 100 percent of their
				allowances to auction. Natural gas utilities must consign to auction:
(A) In 2023, at least 65 percent of the no
				cost allowances allocated to them for 2023;
(B) In 2024, at least 70 percent of the no
				cost allowances allocated to them for 2024;
(C) In 2025, at least 75 percent of the no
				cost allowances allocated to them for 2025;
(D) In 2026, at least 80 percent of the no
				cost allowances allocated to them for 2026;
(E) In 2027, at least 85 percent of the no
				cost allowances allocated to them for 2027;
(F) In 2028, at least 90 percent of the no
				cost allowances allocated to them for 2028;
(G) In 2029, at least 95 percent of the no
				cost allowances allocated to them for 2029;
(H) In 2030, and every year thereafter, 100
				percent of the no cost allowances allocated to them for 2030 and subsequent
				years.
(iii) All proceeds
				from the auction of allowances consigned by natural gas utilities shall be used
				for the benefit of customers, as determined by the utilities and transportation
				commission for investor-owned natural gas utilities, including at a minimum
				eliminating any additional cost burden to low-income customers from the
				implementation of the Climate Commitment Act.
(A) Revenues from allowances consigned by
				natural gas utilities and sold at auction must be returned by providing
				nonvolumetric credits on ratepayer utility bills, prioritizing low-income
				customers, or used to minimize cost impacts on low-income, residential, and
				small business customers through actions that include, but are not limited to,
				weatherization, decarbonization, conservation and efficiency services, and bill
				assistance. Investor-owned utility compliance with this subsection will be
				determined by the utilities and transportation commission. Nothing in this
				subsection amends the utilities and transportation commission's jurisdiction
				over investor-owned utilities.
(B)
				The customer benefits provided from allowances consigned to auction by natural
				gas utilities under this section must be in addition to existing requirements
				in statute, rule, or other legal requirements, as determined for investor-owned
				utilities by the utilities and transportation commission. Nothing in this
				subsection amends the utilities and transportation commission's jurisdiction
				over investor-owned utilities.
(C)
				Except for low-income customers, any customer bill credits under this
				subsection are reserved exclusively for customers at locations connected to a
				natural gas utility's system on July 25, 2021. Bill credits may not be provided
				to customers of the gas utility at a location connected to the system after
				July 25, 2021. Investor-owned utility compliance with this section will be
				determined by the utilities and transportation commission. Nothing in this
				subsection amends the utilities and transportation commission's jurisdiction
				over investor-owned utilities.