Green-e Energy Participant Market Advisory: Washington [updated]
In September 2016 the state of Washington enacted a rule under its Clean Air Act that regulates emissions from several of its most polluting sectors, including electricity generation and transportation. Beginning in 2017, this Clean Air Rule (CAR) requires large emitters to reduce their greenhouse gas emissions gradually over time, with emission reduction units (ERUs) being allocated for reductions beyond required levels or by qualifying in-state projects.
CRS is supportive of the overall goals of the CAR to reduce carbon emissions from the electricity sector. However, the ERU scheme has the potential to reduce the value and integrity of voluntary renewable energy purchases by removing the avoided carbon benefit, while at the same time allowing for more pollution from emitting generators. See Green-e Energy Participant Market Advisory: Washington for more information.
Green-e Energy participants with supply from Washington in 2017 may be subject to a Green-e Governance Board decision affecting supply eligibility. Given the swift enactment and subsequent implementation of the Rule, Green-e staff evaluated Washington supply eligibility and developed recommendations for the Green-e Governance Board, which deliberated the issue at its March 16th meeting and will render a decision in the coming weeks. Green-e staff will be reaching out directly to parties who may be impacted by the CAR, and Green-e representatives are available in the meantime to answer any additional questions.