Washington Administrative Code

(1) Information submitted to ecology under this chapter is a public record subject to the Washington Public Records Act (chapter 42.56 RCW).(2) A person submitting information to ecology under this chapter who believes that the information is confidential business or proprietary …

If any provision of this chapter or its application is held invalid, the remainder of the chapter or application of the provision is not affected.[Statutory Authority: Chapter 70A.60 RCW. WSR 23-24-041 (Order 21-02), § 173-443-265, filed 11/30/23, effective 12/31/23.]

The purpose of this chapter is to establish rules that electric utilities shall use to comply with parts of the Washington Clean Energy Transformation Act (CETA), chapter 19.405 RCW.(1) The purpose of the provisions in Part I of this chapter is to establish methods for calculatio…

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. If this section provides no definition, the definition found in chapter 173-441 WAC applies.(1) "Additionality" means a condition where a project would not or did not come…

The provisions of this chapter apply to:(1) Consumer-owned utilities as defined in RCW 19.405.020(10).(2) Investor-owned utilities as defined in RCW 19.405.020(24).[Statutory Authority: Chapter 19.405 RCW, RCW 19.405.020(18), 19.405.040, 19.405.100 and 70A.45.010. WSR 21-02-091 (…

Use the following methods to calculate the greenhouse gas emissions content in electricity.(1) Utility emissions.(a) Total annual utility greenhouse gas emissions are calculated using Equation 1 of this subsection.Equation 1Utility Emissions=EPA + EIA + unspecifiedWhere:•Utility …

(1) Electric utilities that invest in energy transformation projects as a means to assist in meeting the greenhouse gas neutral standard in RCW 19.405.040 must fulfill the requirements of this chapter.(2) A project intended to serve as an energy transformation project must confor…

(1) Ecology will identify eligible categories of energy transformation projects. A list of these eligible categories of energy transformation projects will be established, expanded, and maintained through the processes in this section.(2) This list will identify categories of pro…

(1) Criteria for use by electric utilities and the manner in which to use them for projects intended to serve as energy transformation projects will exist in a comprehensive protocol authored and maintained by ecology, as well as in supporting documents derived from a variety of …

(1) Electric utilities must follow the processes and procedures in this section in order for energy transformation projects to be eligible for use.(2) To facilitate the processes in this section an electric utility must prepare a project plan describing the project intended to qu…

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected.[Statutory Authority: Chapter 19.405 RCW, RCW 19.405.020(18), 19.4…

(1) The purpose of this chapter is to implement the provisions of the GHG emissions cap and invest program created by RCW 70A.65.060 through 70A.65.210. The provisions of the cap and invest program implemented by this chapter establish a declining cap on GHG emissions from covere…

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. For those terms not listed in this section, the definitions found in chapters 173-441 and 173-446A WAC apply in this chapter."Additional" means, in the context of the offs…

All facilities, suppliers, and first jurisdictional deliverers with covered emissions that meet the applicability requirements of this section are covered entities subject to this rule.(1) Beginning with the first compliance period (emissions years 2023 through 2026) and for all …

(1) Reported emissions. Covered emissions are GHG emissions reported under chapter 173-441 WAC except as modified in subsections (2) through (4) of this section. Covered emissions:(a) Are calculated on a calendar year basis using chapter 173-441 WAC;(b) Include emissions of all G…

(1) Any reporter under chapter 173-441 WAC reporting at least 25,000 metric tons of CO2e covered emissions per calendar year for 2015 or any year thereafter other than a waste to energy facility or a railroad that meets the applicability conditions in WAC 173-446-030 or 173-446-0…

(1) All electric utilities in Washington that are not required to report GHG emissions under chapter 173-441 WAC or that report fewer than 25,000 MT CO2e covered emissions per year must register to receive no cost allowances. (2) To register, electric utilities must comply with t…

(1) A party not identified as a covered entity or opt-in entity that intends to hold Washington compliance instruments may apply to ecology for approval to participate as a general market participant.(a) The following parties may be general market participants:(i) An individual, …

(1) A "cap and invest consultant or advisor" is an individual or party that is providing any of the following services in relation to the cap and invest program or the GHG reporting program to a registered entity for which the individual or party is not an owner or employee regar…

(1) Any party that becomes a covered entity under the criteria set forth in any subsequent subsection of this section is required to transfer its first allowances to its compliance account by November 1st of the year following the year in which its covered emissions first equaled…

(1) When a covered entity reports covered emissions that are below 25,000 metric tons of CO2e in any given calendar year during a compliance period, the covered entity continues to have a compliance obligation for all of its covered emissions through the end of that compliance pe…

(1) Ecology shall create GHG allowances as required to cover the annual allowance budgets determined in WAC 173-446-210. (2) Ecology shall assign each GHG allowance a unique serial number that identifies the annual allowance budget from which the allowance originates.(3) Each all…

(1) Within 40 calendar days after receiving a notice to register from ecology, each registration applicant must make corporate association disclosures and designate account representatives as described in WAC 173-446-105 through 173-446-140. After ecology has received the require…

(1) A corporate association exists when one party has an ownership interest in or control over a second party. The following criteria determine ownership or control:(a) Percent of ownership of any class of listed shares, the right to acquire such shares, or any option to purchase…

(1) Registered entities and registration applicants must disclose all direct and indirect corporate associations with other entities registered in the cap and invest program or in another external GHG ETS to which Washington has linked.(2) Disclosure of parent companies. Register…

(1) All registered entities and registration applicants must provide the following information for each disclosable corporate association:(a) Name, contact information, and physical address of the party;(b) Tracking system identification number, if applicable;(c) Names and addres…

(1) Within 40 calendar days after receiving a notice to register from ecology, every registration applicant must designate at least two and at most five individuals to act as its account representatives to perform any operations within the cap and invest program on its behalf. Ea…

(1) A primary account representative or alternate account representative designated by a registered entity under WAC 173-446-130 may authorize up to five individuals per account to act as account viewing agents who may view all information contained in the tracking system involvi…

(1) Creation of accounts.(a) After ecology receives the required disclosures of corporate association and complete documents for the certification and designation of the primary and alternate account representatives, ecology will set up two accounts for each covered entity and tw…

(1) Total program baseline and subtotal baselines. Ecology must use the following methods for establishing a total program baseline for this chapter.(a) Subtotal baselines are calculated individually for each reporter or sector on an annual basis as described in subsection (2) of…

(1) Calculating the total program allowance budget. Ecology must use the following methods for setting the total program allowance budget for each year. The total program allowance budget for each year must be in units of MT CO2e on a mass basis.(a) Emissions years 2023 through 2…

(1) Allocation baselines for EITE facilities. Ecology will use the following data sources, methods, and criteria to review and approve allocation baselines submitted by EITE facilities.(a) Owners or operators of any EITE facility who wish to be allocated no cost allowances must s…

(1) Total no cost allowances allocated to electric utilities. Allowances will be allocated to qualifying electric utilities for the purposes of mitigating the cost burden of the program based on the cost burden effect of the program. Only electric utilities subject to chapter 19.…

(1) Allocation baselines for natural gas utilities. Ecology will use the following data sources and methods to facilitate the allocation of no cost allowances to natural gas utilities.(a) Ecology will assign an allocation baseline to each natural gas utility using the methods for…

(1) Adjustments for the use of offsets as compliance instruments. Ecology will use the following process to remove and retire allowances to account for the use of offset credits used for compliance in accordance with RCW 70A.65.170(5). This process will be completed by December 1…

(1) Ecology will distribute vintage 2023 no cost allowances to mass-based EITE facilities, natural gas utilities, and electric utilities that have authorized accounts by the following dates:(a) For mass-based EITE facilities: By September 1, 2023.(b) For natural gas utilities:(i)…

(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 …

(1) At least 60 calendar days before an auction, ecology shall provide notice of the auction to the Environmental Justice Council and to the public, setting out the following information:(a) The day on which, and time period during which, bidding in the auction may take place;(b)…

(1) A registered entity must apply to ecology before bidding in each auction. To apply to bid in an auction each registered entity must:(a) No later than 40 calendar days before the day of the auction, update any information required to be updated under WAC 173-446-050(5), 173-44…

(1) Collusion among bidders and/or market manipulation are prohibited.(2) To prevent bidder collusion and minimize the potential for market manipulation, a registered entity registered to participate in an auction may not release or disclose any bidding information including, but…

(1) Ecology may cancel or restrict a previously approved auction participation application or reject a new application if ecology determines that a registered entity has:(a) Provided false or misleading information;(b) Withheld material information that could influence an ecology…

(1) Each registered entity must provide a bid guarantee for the purpose of bidding in an auction. The bid guarantee must cover bids for future vintage allowances as well as bids for current and past vintage allowances. The bid guarantee must meet the following criteria:(a) Be in …

A registered entity shall comply with the following rules for purchasing allowances available at an auction:(1) A covered entity or opt-in entity that is not a member of a direct corporate association shall not purchase more than 10 percent of the allowances available.(2) A gener…

(1) The auction floor price for 2023 shall be $19.70 increased by five percent plus the rate of inflation as measured by the most recently available 12 months of the consumer price index for all urban consumers as of the first business day in December 2022.(2) The auction floor p…

The emissions containment reserve trigger price is suspended as of October 1, 2022, until reinstated by rule.[Statutory Authority: RCW 70A.65.220. WSR 22-20-056 (Order 21-06), § 173-446-340, filed 9/29/22, effective 10/30/22.]

Ecology shall divide allowances that are to be auctioned into lots in accordance with the following rules:(1) Each lot, other than the final lot for each vintage, shall consist of 1,000 allowances.(2) The final lot may consist of fewer than 1,000 allowances if fewer than 1,000 al…

(1) A registered entity must include the following in a bid submitted in an auction:(a) The bid price, in dollars and whole cents;(b) The number of lots that the participant wishes to purchase.(2) Each bid must be sealed and submitted in the form approved by ecology.(3) A partici…

(1) Before accepting any bids, ecology shall determine whether each registered entity's actual maximum bid value, as determined under subsection (2) of this section, is greater than the registered entity's bid guarantee.(2) The registered entity's actual maximum bid value is dete…

(1) If the actual maximum bid value of a registered entity's bids exceeds the value of the registered entity's bid guarantee, ecology shall remove from the registered entity's bids enough lots such that the remaining bids would not result in the actual maximum bid value exceeding…

(1) No bid price that is below the auction floor price shall be accepted.(2) Ecology shall accept bids that have not been rejected, starting with the highest bid price and continuing in decreasing order by bid price until no more acceptable bids remain or no more of the allowance…