Clean Energy Transformation Act (CETA)

On May 7, 2019, Governor Jay Inslee signed the Clean Energy Transformation Act (CETA) (SB 5116, 2019) into law, 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 develops rules and reporting procedures and conducts regular assessments to ensure success.

Clean Energy Implementation Plan reporting

Planning is key to making the transition to 100% clean electricity affordable, reliable and fair. RCW 19.405.060 of CETA requires electric utilities to create four-year plans to meet CETA requirements. Consumer-owned utilities must submit their clean energy implementation plan (CEIP) to Commerce using the template provided by Commerce (WAC 194-40-050).

Commerce received multiple requests from utilities to develop a CEIP reporting template and provide reporting guidance, per RCW 19.405.060. Commerce hosted several workshops and meetings with energy policy subject matter experts and a CEIP technical advisory group over several months to develop the 2026-2029 CEIP reporting template and guidance.

The template and guidance help utilities create a clear plan for an equitable clean energy transition. It starts with setting goals, objectives and outcomes in collaboration with their communities, including vulnerable and highly impacted groups as defined in CETA. It also ties established goals to the creation of an action plan and metrics to evaluate the success of the interim CEIP.

Download the CEIP reporting template and guidance materials (Box).
Submit your report via Smartsheet by close of business, Jan. 1, 2026

Clean Energy Implementation Plan reporting informational webinar
March 17, 1-2:30 p.m. (Zoom)

Commerce will host a webinar March 17 at 1 p.m. to review the final 2026-2029 Interim CEIP reporting template and guidance. The template and guidance, developed in response to utility requests for further clarification, were shaped by consultations with utilities, the Bonneville Power Administration, and climate and environmental justice advocates.

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 are required to assess the potential impacts of their decisions on two communities: vulnerable populations and highly impacted communities. Vulnerable populations are communities that experience a disproportionate 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 or communities located at least partially on tribal land.

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 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 are required to submit clean energy implementation plans every four years, and starting in 2026, they must submit progress or compliance reports.

Plans and data aggregation

Washington’s consumer-owned utilities have submitted their 2022-26 Clean Energy Implementation Plans (CEIP). The CEIP documents show 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 combined file. Commerce appreciates the time and attention to detail stakeholders put into reviewing the file in the fall of 2022.