On May 7, 2019, Governor Jay Inslee signed into law the Clean Energy Transformation Act (CETA) (SB 5116, 2019), which commits Washington to an electricity supply free of greenhouse gas emissions by 2045. Clean electricity will allow Washington residents and businesses to power their buildings and homes, vehicles, and appliances with carbon free resources, such as wind and solar. Reducing fossil fuel use will improve the health of communities, grow the economy, create family-sustaining jobs, and enable the state to achieve its long-term climate goals.
The law provides safeguards to maintain affordable rates and reliable service. It also requires an equitable distribution of the benefits from the transition to clean energy for all utility customers and adds and expands energy assistance programs for low-income customers. Commerce is a key leader in implementing this law. Working with utilities, other state agencies and multiple stakeholders, Commerce will develop rules, develop reporting procedures and conduct regular assessments to ensure success.
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Utilities may adopt a slower transition path if necessary to avoid rate shock. The law also provides for short-term waivers of the clean energy standards if needed to protect reliability.
CETA requires that equity considerations become an explicit part of utility planning. Utilities must assess the potential impacts of their decisions on two communities: vulnerable populations and highly impacted communities. Vulnerable populations are communities that experience a disproportionate cumulative risk from environmental burdens due to socioeconomic and biological factors that are identified by utilities in conjunction with public input. Highly impacted communities are geographic communities, impacted by fossil fuels and climate change and identified by the Washington State Department of Health’s Environmental Health Disparities Map.
Utilities must provide a public process for receiving feedback on their plans and a description of how public comments were reflected in their governing board or commission-approved plans. Utilities must also improve energy assistance programs for low-income households by designing programs that lower the energy burden.
CETA supports Washington workers and businesses by providing tax incentives for clean energy projects that employ women, minorities, or veteran-owned businesses, as well as businesses that have a long history of complying with federal and state wage and hour laws and regulations, and employers who hire local workers or offer apprenticeship programs. The incentives are available through 2029 to encourage early investments in the electric grid.
Commerce is working closely with the Utilities and Transportation Commission (UTC), which regulates the rates and service of investor-owned utilities, to implement CETA. Other state agencies with roles in CETA implementation and compliance include the State Auditor, the Attorney, and the departments of Ecology and Health. Interested stakeholders include business customers, low-income and vulnerable communities, consumers, environmental advocates and renewable energy developers.
CETA Interim Assessment
The Washington Legislature requires Commerce to conduct an interim assessment of the impact of CETA under RCW 19.405.080.
Commerce has adopted comprehensive reporting procedures for public utility districts, municipal electric utilities and electric cooperatives. These utilities must submit clean energy implementation plans every four years and must submit progress or compliance reports starting in 2026.
Plans and Data Aggregation
Washington’s consumer-owned utilities have submitted their 2022-26 CEIPs. The CEIP documents how a utility intends to comply with CETA’s clean energy and equity requirements over the next four years and make progress towards the 2030 greenhouse gas neutral and 2045 greenhouse gas free standards. Commerce has subsequently aggregated the plan into a draft file. Commerce appreciates the time and attention to detail stakeholders put into reviewing the file in the fall of 2022.