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. Reductions in 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, reporting procedures and regular assessments to ensure success.
Events and updates
Commerce publishes Statewide Monthly Low-Income Energy Assistance Program Design Report
Commerce has published its Statewide Monthly Low-Income Energy Assistance Program Design report pursuant to Sect. 132(11) of Chapter 475, Laws 2023. The recommended program design would provide universal access to monthly low-income energy assistance and provide uniform benefit levels targeted to meet the energy assistance needs of similarly situated households.
The recommended program design incorporates insights and principles co-developed with low-income households, community organizations, Washington utilities, low-income advocates, state agencies and national consultants specializing in human-centered design and low-income energy assistance programs.
The Legislature required Commerce to make this recommendation due to the significant need for energy assistance, low participation rates in electric utility assistance programs, and fragmentation of Washington’s 50+ electric utilities, each with varying resources and over 50 different programs and communication strategies.
The Legislature required Commerce recommend a design of a statewide program. Commerce is not required to recommend the Legislature establish a statewide program, and the agency makes no recommendations for legislative action in the report. In addition, the Legislature does not require Commerce to recommend a funding source for the recommended program design, and Commerce makes no recommendation on a funding source. Commerce does evaluate the tradeoffs of different funding sources, including the Climate Commitment Account, state general fund, and a system benefits charge.
Resources
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:
2025 Sec. 120 Report
Commerce has completed its public process for the upcoming Low-Income Energy Assistance 2025 Legislative report. The agency is finishing its data set and report and expects it to be published in January of 2025.
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.
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.