This page last reviewed May 8, 2019

Electrical Distribution Utility and Natural Gas Supplier Use of Allocated Allowance Value

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Background

The Cap-and-Trade Regulation (Regulation) places limits on the use of allowances that the California Air Resources Board (CARB) allocates to electrical distribution utilities (EDU) and natural gas suppliers. These requirements, which are in sections 95892 (EDUs) and 95893 (natural gas suppliers) of the Regulation, require that each EDU and natural gas supplier annually report to CARB on how its uses of allocated allowances met these requirements. The requirements focus on the value of allowances being “used for the primary benefit of retail [electricity or natural gas] ratepayers of each [EDU or natural gas supplier], consistent with the goals of AB 32” (sections 95892(d)(3) and 95893(d)(3) of the Regulation).

Reporting Requirement

Each EDU and natural gas supplier that receives an allowance allocation pursuant to section 95892(a) or 95893(a), respectively, of the Regulation is required to report to the Executive Officer on the use of allocated allowance value during the prior calendar year. The report is due June 30 each year. Each EDU and natural gas supplier must, under the reporting requirements described in sections 95892(e) and 95893(e), respectively, describe how its use of allocated allowance value meets the requirements of the Regulation. CARB provides forms, which EDUs and natural gas suppliers may use when fulfilling this reporting requirement.

EDU Reporting Form

The Electrical Distribution Utility Use of Allocated Allowance Value Form can be used to report the use of allocated allowance value during the prior calendar year (the data year). In 2019, an EDU can use this form to report on the disposition of all allocated allowance value for the 2018 data year. EDUs may use the GHG Benefits Estimation Tool and/or the EV GHG Benefits Estimation Tool to estimate the GHG emission reduction benefits from uses of allocated auction proceeds.

For reporting on the 2018 data year, CARB must receive the information requested in this form no later than 5:00 p.m. on July 1, 2019. If an EDU elects to use the provided form, CARB requests the completed Excel workbook be emailed as an attachment to edu-allocation@arb.ca.gov along with a PDF version that includes the required signed attestation and a completed Excel workbook version of any applicable GHG Benefits Estimation Tool. Hard copies are not required.

If you choose to submit a hard copy report, please mail the signed hard copy to:

        California Air Resources Board
        Attn: Rachel Gold
        Climate Change Program Evaluation Branch, 6th Floor
        1001 "I" Street
        Sacramento, CA 95814

Natural Gas Supplier Reporting Form

The Natural Gas Supplier Use of Allocated Allowance Value Form can be used to report the use of allocated allowance value spent during the prior calendar year (the data year). In 2019, a natural gas supplier can use the form to report on all allocated allowance value used in the 2018 data year. Natural gas suppliers may use the GHG Benefits Estimation Tool and/or the EV GHG Benefits Estimation Tool to estimate the GHG emission reduction benefits from uses of allocated auction proceeds.

For reporting on the 2018 data year, CARB must receive the information requested in this form no later than 5:00 p.m. on July 1, 2019. If a natural gas supplier elects to use the provided form, CARB requests the completed Excel workbook be emailed as an attachment to ngs-allocation@arb.ca.gov along with a PDF version that includes the required signed attestation and a completed Excel workbook version of any applicable GHG Benefits Estimation Tool. Hard copies are not required.

If you choose to submit a hard copy report, please mail the signed hard copy to:

        California Air Resources Board
        Attn: Eileen Hlavka
        Climate Change Program Evaluation Branch, 6th Floor
        1001 "I" Street
        Sacramento, CA 95814

Summary Reports

CARB provides summaries of how EDUs have used their allocated allowance value in prior years. The summary reports are based on the EDU reports provided to CARB pursuant to section 95892 of the Regulation. The current summary report, which supersedes prior summary reports, is available here:

Prior reports on EDU use of allocated allowance value are available below.

CARB will post the first summary of natural gas supplier use of allowance value by 2020. This report will include a summary of the 2015-2018 use of allowances allocated to natural gas suppliers. In 2018, within proceeding R.14-03-003, CPUC directed natural gas suppliers to use this value to net out 2015-2017 costs and to return value to residential ratepayers beginning in 2018. Open proceeding R.19-01-001, implementing SB 1477 (Stern 2018), will direct a portion of this value to be used for building decarbonization.


For EDU questions or comments, please contact EDU allocation team lead Rachel Gold at edu-allocation@arb.ca.gov or (916) 327-1517.

For natural gas supplier questions or comments, please contact the natural gas supplier allocation team lead Eileen Hlavka at ngs-allocation@arb.ca.gov or (916) 322-7648.

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