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Cap and Trade Program

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CPUC Proceeding and Documents Related to GHG Cap-and-Trade



  • R.11-03-012 - Sets overacrching policies
    Considers how Cap-and-Trad allowance revenues should be used, how revenues from the sale of Low Carbon Fuel Standard (LCFS) credits should be used, and resolves issues pertaining to natural gas utility complaince with the Cap-and-Trade program.  It is divided into three tracks:
    • Track 1 (ongoing) - Use of electric utility revenues from the sale of GHG allowances.  This track was expanded to address disputes about bilateral contracts with electric utilities that may lack terms and conditions about which part bears responsiblity for GHG costs.
    • Track 2 (ongoing) - Use of electric utility revenues from the sale of LCFS credits.
    • Track 3 (future) - Rules about natural gas utility procurement of Cap-and-Trade complaince instruments and uses of allowance revenue.
  • A.13-08-002, - et al - 2014 Cap-and-Trade cost allowance revenue forecasts
    Reviews electric utility requests to approve forecasted GHG costs and allowance revenues for inclusion in 2014 electricity rates.
    • Phase 1 - information and approvals necessary to incorporate GHG cost and revenues into 2014 electricity rates and to issue the first Climate Credit.
    • Phase 2 - Detailed review of forecasting methodologies to be used in the future and methods to true-up or reconcile forecasted GHG costs and revenues with actuals.
  • A.13-08-026, et al - Long-term outreach activities
    Develops customer education and outreach activities for 2014 and 2015 related to the return of GHG allowance revenue to residential, small business and emissions-intensive and trade-exposed customers.
    • Phase 1 - Whether outreach should be administered by utilities or a third-party.
    • Phase 2 - What the scope and budget of outreach actvities should be.

Decisions, Resolutions and Energy Division Letters

  • D.12-04-046 - Establishes procurement rules about how electric utilities comply with Cap-and-Trade (formulas available in Appendix 1).
  • D.12-12-033 - Establishes policy principles and overall rules about how Cap-and-trade-related costs and allowance revenues should affect electricity customers.
  • D.13-12-002 - Approves the formula that electric utilities will use to give GHG allowance revenue to small businesses.
  • D.13-12-003 - Aprroves electric utilities' GHG Cap-and-Trade Implementation Plans (required by D.12-12-033)
  • D.13-12-041 - Adopts forecasts of GHG cost and allowance revenue that utilities will include in 2014 electricity rates, and approves the 2014 residential Climate Credit amounts.
  • D.14-01-012 - Authorizes flexibility to set the name of what is now the California Climate Credit.
  • D.14-02-003 - Authorizes a study to identify additional industrial sectors at risk of emission leakage.
  • Res. E-4611 - Rejects 2013 utiltiy outreach and education plans, and redirects funds to a neutral non-profit entity to coordinate outreach and education with Energy Upgrade California.
  • Energy Division Letters:
    • Establishing the name of the California Climate Credit; and
    • Establishing the dates when electric utilities will begin introducing GHG pollution costs in rates and returning allowance revenues to customers.



Last Modified: 3/21/2014

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