Status of the CA Voluntary Renewable Energy Set-Aside
Suppliers sourcing from California supply for use in Green-e® Energy certified sales should be aware that the state is running out of allowances for use in the Voluntary Renewable Electricity (VRE) Program. Without these allowances, voluntary purchases of renewable energy from California or generation imported to California will not affect statewide emissions and instead will subsidize compliance for emitters. If the VRE is depleted, Green-e® Energy program rules require participants to independently procure allowances to maintain impact for their customers, which may add substantially to the cost.
The California Air Resource Board (CARB) stopped allocating allowances to the set-aside in 2017, and any changes to the set aside will occur in future publicly noted amendments to the Cap and Trade regulation. As of now, there is no indication of when the next such process will occur. But given the timing and the fact that it is very possible that allowances may run out for the 2023 Green-e® Energy reporting year, Center for Resource Solutions has and will continue to engage with CARB on the value and possibility of resuming allocations to the set-aside, and we strongly encourage all participants to do so as well. The cap-and-trade program removes the ability of voluntary and corporate renewable energy to affect statewide emissions outside of the VRE, with the VRE Reserve Account ensuring that our efforts and investments in California renewable energy achieve real emissions reductions. The ability to reduce emissions beyond what is required by law and move the needle on climate change are very important drivers of our renewable energy activities and investments in the state.
To contact the CA VRE program:
Voluntary Renewable Electricity Program Inbox
Phone: (279) 208-7516
For more information on VRE allowances please see Voluntary Renewable Electricity Program.