Clean Energy Transformation Act (CETA)

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 energy burden.  

CETA supports Washington workers and businesses by providing tax incentives for clean energy projects that employ women, minority, or veteran-owned businesses, 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.

RCW 19.405.120 (Sec. 120) states that it is the intent of the Washington State Legislature to demonstrate progress toward making energy assistance funds available to low-income households. It requires utilities to make programs and funding available for energy assistance to low-income households. Each utility must demonstrate progress in providing energy assistance pursuant to assessments and plans developed under the statute.

Commerce is required under Sec. 120 to submit a biennial report to the Legislature that includes:

• A statewide summary of energy assistance programs, energy burden, and energy assistance need
• An identification and quantification of current expenditures on low-income energy assistance
• An evaluation the effectiveness of additional optimal mechanisms for energy assistance including, customer rates, a low-income specific discount, system benefits charges, and public and private funds
• An assessment of mechanisms to prioritize energy assistance towards low-income households with a higher energy burden

Commerce published its first biennial energy assistance report in 2023. The report and supporting materials are available below: 

• Low-Income Energy Assistance 2023 Legislative Report (PDF)
• Supporting materials (on Box) 

Sec. 120 Reporting Template – Due April 1, 2024

Commerce has published its final Sec. 120 reporting template for 2022 and 2023 program years. The report must be completed in its entirety by April 1, 2024. Consistent with past process, the reporting template was developed with input from an advisory group of utility program staff and low-income advocates. Commerce held a workshop with small utilities and a public workshop and comment period on the reporting template.

 A policy memo with a comment summary, reporting template guidance, and the reporting template are available at the link below: 

• 2024 Sec. 120 Reporting Materials (on Box)
• Reporting upload form

Statewide Program Design Study

The Washington 2023 Operating Budget requires Commerce submit a report to the Legislature with recommendations on a design for a statewide energy assistance program to address the energy burden and provide access to energy assistance for low-income households. The agency must consider the following, when making recommendations: 

• Data collection on energy burden and assistance need
• Universal intake coordination and data sharing across statewide programs for low-income households
• Program eligibility, enrollment, and administration
• Outreach and community engagement
• Multicultural services
• Funding 
• Reporting

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. 

• Clean energy implementation plans and documents (on Box)

Commerce partners with the Washington Utilities and Transportation Commission (UTC) to hold an annual meeting to discuss issues related to resource adequacy for electric utilities in Washington.

RCW 19.280.065 requires Commerce and the Utilities and Transportation Commission (Commission) to hold meetings annually and to provide a summary to the governor and legislature. Under the statute, at least once every twelve months, Commerce and the UTC will hold a meeting of representatives of investor- and consumer-owned utilities, regional planning organizations, transmission operators, and other stakeholders. 

These meetings are to discuss the current, short-term, and long-term adequacy of energy resources to serve the state’s electric needs. Topics covered will include recent assessments of electricity demand and supply, the electric power industry’s progress in developing a coordinated resource adequacy program, and other actions utilities are taking to ensure resource adequacy.

A summary of the meeting will be submitted to the governor and Legislature within sixty days of each meeting. The meetings will take place through 2031.

2023 Resource Adequacy Meeting Summary

The Washington Utilities and Transportation Commission (Commission) and the Washington Department of Commerce (Commerce) held their third annual resource adequacy meeting on July 24, 2023, to discuss the current adequacy of energy resources to serve the state’s electric power needs. Commerce and the Commission greatly appreciate the presenters who provided expert testimony and the active participation of the public. The meeting summary and meeting materials are posted below.

 Resources

• 2023 Resource Adequacy Meeting summary (PDF)
• 2023 Resource Adequacy Meeting Agenda (PDF)
• Presentation materials (on Box)