CPUC Cap-and-Trade Decision-Making

How to Find and Receive Documents and Updates

CPUC organizes much of our decision-making in public proceedings. Any person may be on the information only section of a “service list” for a proceeding, and that person will stay informed about developments in the proceeding by receiving e-mails with documents sent by the CPUC and parties participating to the proceeding, as well as by receiving notices of workshops or other events related to the proceeding.

To add yourself to a service list, email Process_Office@cpuc.ca.gov and include the proceeding number, your name, title, organization, address, phone number, and e-mail (Proceeding numbers are listed in the table below). If you would like to become an official party to a proceeding, you can find more information from CPUC's service list website. The CPUC's Public Advisor's Office provides procedural information and advice to individuals and groups who want to formally participate in proceedings as a party.

CPUC Actions to Date

The table below lists CPUC proceedings and actions related to the Cap-and-Trade Program, including decisions on how investor-owned utilities must use Cap-and-Trade funds, how greenhouse gas (GHG) costs can be handled, and how costs and proceeds must be reported.

The full docket card for each proceeding can be accessed through the CPUC docket card search tool. Enter the proceeding number without any periods or dashes to search. The docket card includes filings from parties with information and arguments that informed the decision. Besides using the links below, final decisions can also be located on the CPUC website using this decision search tool.

CPUC Cap-and-Trade Proceedings Table

The table below summarizes CPUC Cap-and-Trade Program related proceedings.

The CPUC numbering system contains information that may help you locate a document. The first two sets of numbers indicate the year and month of the CPUC action, while the last three digits are a numerical index number. For example, R.20-05-002 means that it was the second (002) rulemaking (R) the CPUC started in May (05) of 2020 (20). For reference, R = Rulemaking; A = Application; and D= Decision.

Rulemakings

R.06-04-009 (Closed): Coordinates GHG emission reduction policies and associated implementation steps for utility energy procurement.

Document

Program Impact

D.08-10-037

Attachment A

Attachment B

Supplied CARB with CPUC's estimate of potential impacts to the electricity and natural gas sectors from AB 32 implementation options

R.10-05-006 (Closed): Implementation of electric resource procurement policies and programs to ensure a reliable and cost-effective electricity supply in California, including authorization to buy and sell GHG allowances and offsets.

Document	Program Impact
D.12-04-046	Establishes procurement rules about how electric utilities comply with Cap-and-Trade Sets formulas for procurement limits for compliance instruments

R.11-03-012 (Open): Addresses potential electric utility cost and revenue issues associated with greenhouse gas emissions including use of revenues that electric utilities may generate from auction of allowances allocated to them by the California Air Resources Board. Includes how revenues may be returned to utility customers or used to fund other programs.

Document	Program Impact
D.12-12-033	Established policy goals and overall framework for distribution of allowance proceeds Established residential California Climate Credit methodology
D.13-12-002	Established small business California Climate Credit methodology used until 2022 Approved, with modifications, the utilities' implementation plans
August 21, 2013 ALJ Ruling	Incorporated into the record a report on outreach and education activities (ordered in D.12-12-033)
D.13-12-003	Approved electric utilities' GHG Cap and Trade Implementation Plans (required by D.12-12-033)

D.13-12-041	Ordered the IOUs to split 2013 Cap-and-Trade Program proceeds and GHG costs equally across 2014 and 2015
D.14-12-037 as modified by D.15-08-006 and D.16-07-007	Established EITE Methodology Allows for use of CARB-verified production data when calculating EITE credits and makes other minor EITE formula adjustments
January 24, 2014 Letter from the Energy Division Director	Name changed from the 'Climate Dividend' to the 'California Climate Credit' Incorporated into the record by an ALJ Ruling on February 5, 2014
D.15-07-001	Rate reform decision in R.12-06-013 which removed the wide disparity between tiers and found that the residential volumetric rate credit should be eliminated starting January 1, 2016
D.19-12-002	Modifies D.13-12-003 to temporarily allow SDG&E to distribute the California Climate Credit in August and September for 2020 and 2021
July 21, 2022 ALJ Ruling	Defers action on SDG&E’s summer residential California Climate Credit pilot program approved in D.19-12-002
D.20-04-027	Modifies the distribution schedule for the 2020 California Climate Credit for PGE & SCE customers The October California Climate Credit was split in half equally and distribution of each half was advanced to the months of May and June
D.20-05-052	Modifies the distribution schedule for the 2020 California Climate Credit for Pacific Power (PacifiCorp) & Liberty (CalPECO) customers For Liberty, the distribution of the October California Climate Credit was advanced to June For Pacific Power (PacifiCorp), the October California Climate Credit was split in half equally and distribution of each half was advanced to the months of June and July
D.23-02-014	Modifies the distribution schedule for the 2023 California Climate Credits for all electric and natural gas IOUs in response to the natural gas price spike in January 2023 Requires advancement of the April 2023 electric and natural gas residential credit distribution to “as soon as can be practicably implemented” resulting in distribution in February or March rather than April Allows for advancement of the April 2023 electric small business California Climate Credit alongside any advancement in the residential California Climate Credit Waives outreach requirements if they interfere with speedy distribution of the California Climate Credit Does not change the October 2023 residential or small businesses electric California Climate Credit

R.13-02-008 (Reopened): Adopts standards and requirements relative to health, safety and facility integrity for biomethane injected into common carrier pipelines.

Document

Program Impact

D.20-12-031

Provides an additional $40M of natural gas allocated allowance auction proceeds to the monetary incentive program to fund biomethane projects
Funding burden spread proportionally across all four Natural Gas IOUs consistent with each gas utility’s respective percentage of their combined CARB allocation of Cap-and-Trade allowances
Collected in installments of $5 million quarterly over the course of two years, starting with the first Cap-and-Trade allowance auction in 2022

R.14-03-003 (Closed): Establishes the policy, programs, rules, and tariffs necessary for natural gas investor-owned utilities to comply with the California Air Resources Board's greenhouse gas Cap-and-Trade Program.

Document	Program Impact
D.14-12-040 Appendix A	Adopts a settlement agreement regarding policies, programs, rules, and tariffs necessary for natural gas utilities to comply with the Cap-and-Trade Program
D.15-10-032 as corrected by D.16-01-028	Approves methodologies for natural gas utilities to use when calculating forecast and recorded greenhouse gas allowance proceeds and greenhouse gas costs associated with complying with Cap-and-Trade
D.18-03-017	Closes rehearing of D.15-10-032 and finalizes methodologies for natural gas utilities to use when calculating GHG allowance proceeds and GHG costs associated with complying with Cap-and-Trade
D.21-02-005	Rejects a petition to modify the distribution of the residential Natural Gas California Climate Credit in response to the COVID-19 pandemic

R.14-07-002 (Open): Adopts new clean energy and energy efficiency projects funded with Cap-and-Trade Program funds.

Document	Program Impact
D.17-12-022 as modified by D.19-03-015	Established and clarified IOU funding requirements for the SOMAH program
D.18-06-027 as corrected by D.18-10-007	Adopts three new programs to promote the installation of renewable generation among residential customers in disadvantaged communities (DACs)
D.20-04-012	Continues authorization of allocation of funds to the SOMAH program through June 30, 2026 Adds additional reporting requirements for SOMAH funds, including annual true-up amounts, to ERRA/ECAC applications

R.19-01-011 (Open): Rulemaking to address the decarbonization of buildings.

Document

Program Impact

D.20-03-027

Establishes two building decarbonization pilot programs: (1) The Building Initiative for Low-Emissions Development (BUILD Program) program and (2) The Technology and the Equipment for Clean Heating (TECH Initiative) initiative in accordance with Senate Bill (SB) 1477’s (Stern, 2018)
Directs natural gas IOUs to use $50M annually of Auction Allowance Proceeds to fund the BUILD and TECH pilot programs from July 2019 – June 2023

R.20-05-002 (Closed): Addressed issues needed to keep the residential California Climate Credit, small business California Climate Credit and California Industry Assistance in compliance with all applicable regulations through 2030. Also, considered steps the Commission should take to improve crediting processes and changes the Commission should take to improve outcomes for ratepayers.

Document	Program Impact
Staff Proposal	Summarizes past funding outcomes, provides data related to the California Climate Credit and other funded programs, and outlines Energy Division Staff Proposals for the future of the residential California Climate Credit, small business California Climate Credit, and California Industry Assistance
D.20-10-002	Addressed near-term issues needed to ensure uninterrupted delivery of the electric residential California Climate Credit in 2021 Continues the small business California Climate Credit as a volumetric return with a 50% assistance factor for 2021
D.21-08-026	Replaced the volumetric small business California Climate Credit with a flat credit equal to the residential California Climate Credit Requires Bear Valley Electric Service to distribute Cap-and-Trade allocated allowance auction proceeds using the same methods as other California IOUs and file an annual Tier 2 advice letter Updates the method for determining the dollar-conversion factor to eliminate the need for true-ups For small and medium EITE facilities only, continues the existing once-per-compliance-period self-attestation auditing requirements for 2021-2030 Established a handoff process if and only when CARB implements an adopted process to obtain sole responsibility for crediting large EITE facilities to minimize leakage associated with Cap-and-Trade Program costs in purchased energy Updates the emissions intensity factor to use IOU-specific benchmarks developed by CARB Extended SDG&E’s summer pilot distribution of the residential California Climate Credit (established in D.19-12-002) through 2022 Directed the Energy Division to hold a workshop and the Joint IOUs to file an Advice Letter with updated Appendix D templates (established under A.13-08-002) to implement crediting methodology changes consistently across IOUs

Advice Letters

Document

Program Impact

PG&E 6326-E-A
PG&E 6326-E-B
PG&E 6326-E-C

SCE 4578-E-A
SCE 4578-E-B
SCE 4578-E-C

SDG&E 3845-E-A
SDG&E 3845-E-B
SDG&E 3845-E-C

Liberty Utilities 177-E-A
Liberty Utilities 177-E-B
Liberty Utilities 177-E-C

Bear Valley 425-E-A
Bear Valley 425-E-B
Bear Valley 425-E-C

PacifiCorp 660-E-A
PacifiCorp 660-E-B
PacifiCorp 660-E-C

Approved changes to the D-series templates used to track the use of allocated allowance auction proceeds by each IOU.
Modified template D-1 to allow for the calculation of the small business California Climate Credit as a flat credit equal to the residential California Climate Credit.
Modified template D-2 to remove information on indirect GHG costs.
Removed templates D-4 and D-5.
First submitted as part of the 2022 Forecast ERRA applications.

Templates available here:

Attachment D Instructions (PDF)

Attachment D_GHG Cost and Revenue Template (Excel File)

Applications

A.12-08-007 (Closed): Applications of the electric utilities for statewide marketing, education, and outreach programs and budgets related to the California Climate Credit.

Document	Program Impact
D.16-03-029	Established post-2016 statewide marketing, education, and outreach activities

A.13-08-026 (Closed): Adopts customer education and outreach activities for 2014-2015 pertaining to the distribution of electric greenhouse gas allowance proceeds to residential, small business, and emissions-intensive and trade-exposed customers.

Document	Program Impact
D.14-01-012	Authorized the Energy Division to change the name of the residential return
D.16-06-041	Determined requirements for customer outreach and education have been satisfied Migrates future outreach and education efforts to A.12-08-007

A.13-08-002 (Closed): Adopts standard procedures and templates for electric utilities to track greenhouse costs and use of Cap-and-Trade Program funds.

Document

Program Impact

D.14-10-033

Established tracking of GHG allowance proceeds in ERRA/ECAC applications

Provides updated templates required for GHG allowance proceed reporting and Weighted Average Cost (WAC)
2021 update allows for direct GHG costs to be split between bundled and unbundled customers. Adds Table C-2 to track GHG cost splitting across accounts

A.18-05-015 (Closed): Application to approve the use of Cap-and-Trade allowance revenues to fund Southern California Edison's Clean Energy Optimization Pilot (CEOP).

Document

Program Impact

D.19-04-010

Attachment A

Approved use of $20.4M of Cap-and-Trade Program funds by SCE for a clean energy optimization pilot (CEOP)

D.20-11-030

Approved a settlement modifying the original CEOP pilot agreement in D.19-04-010. This allowed the CEOP to continue to move forward following disruptions caused by the COVID-19 pandemic on energy use at UC and CSU schools.

A.22-03-006 (Open): Application to approve the use of Cap-and-Trade allowance revenues to fund PG&E's Clean Energy Optimization Pilot (CEOP).

Document	Program Impact
TBD	Decision pending

Resolutions

E-4611	Did not approve 2013 utility outreach and education plans and redirected funds to a neutral non-profit entity to coordinate outreach and education with Energy Upgrade California
E-4716	Establish implementation details for EITE credit Establish the attestation process for Small and Medium EITEs, set refinery formulas for later compliance periods, and clarified processes for multisector EITE facilities
E-4999	Implemented the Disadvantaged Communities Green Tariff (DAC-GT) and Community Solar Green Tariff (CSGT) programs
G-3565	Required natural gas IOUs to set-aside a portion of 2020 auction allowance proceeds for Senate Bill 1477 (Low emissions buildings and sources of heat energy) and recalculate the California Climate Credit amount.

Decision Approving the Return of Cap-and-Trade Program Funds for Electric IOUs

The following decisions record the amount of Cap-and-Trade Program funds for each year and approve the use of these proceeds to fund the residential electric California Climate Credit, the small business California Climate Credit, the California Industry Assistance Credit, as well as certain Clean Energy and Energy Efficiency programs. The decisions also approve the use of GHG allowance proceeds for administrative and outreach expenses.

	PG&E	SCE	SDG&E	Liberty Utilities	Pacific Power	Bear Valley***
2014	All Utilities excl. BVES - D.13-12-041
2015	D.14-12-054	D.15-02-005	D.15-03-019 as corrected by D.15-04-005 and D.15-04-036	D.14-12-047 as corrected by D.15-01-056	D.15-02-006
2016	D.15-12-022	D.15-12-033	D.15-12-032	D.15-12-037	D.15-12-030
2017	D.16-12-038	D.16-12-054	D.16-12-053	D.16-12-013	D.16-12-012
2018	D.18-01-009	D.17-12-018	D.17-12-014	D.18-03-024	D.17-12-017
2019	D.19-02-023	D.19-02-024	D.18-12-016	D.20-08-030	D.18-12-007
2020	D.20-02-047	D.20-01-022	D.20-01-005	D.20-05-044	D.20-05-011*
2020	**D.20-04-027		---	**D.20-05-052
2021	D.20-12-038	D.20-12-035	D.21-01-017	Email Ruling D.21-05-005	D.21-03-007*
2022	D.22-02-002	D.22-01-003	D.21-12-040	D.22-09-013	D.22-03-014*	AL 430-E-A
2023	D.22-12-044	D.22-12-012	D.22-12-042	Pending	D.22-03-008	AL 457-E-A
2024	D.23-12-022	D.23-11-094	D.23-12-021	Pending	Pending	AL 479-E

*Pacific Power's 2020 through 2023 California Climate Credits have been approved independently from the rest of their ECAC Application.

**Timing of the California Climate Credits was adjusted in response to COVID-19.

***Prior to 2022 Bear Valley Electric Service did not issue a California Climate Credit and distributed all allocated allowance auction proceeds volumetrically. See D.12-12-033 and D.21-08-026.

Advice Letters Approved for the Return of Cap-and-Trade Program Funds for Natural Gas IOUs

The following advice letters record the amount of Cap-and-Trade Program funds for each year and calculate the use of these proceeds to fund the residential natural gas California Climate Credit and building decarbonization pilot programs required under SB 1477. The advice letters also report the use of GHG allowance proceeds for administrative and outreach expenses.

	PG&E	SDG&E	SoCalGas	Southwest Gas
2015	Proceeds for 2015-2017 were netted against costs (as directed in D.18-03-017). Tracking of this process is included in the 2018 Advice Letters.
2016
2017
2018	AL 3975-G-A / AL 4053-G	AL 2673-G-C	AL 5426	AL 1072
2019	AL 4053-G	AL 2712-G	AL 5368	AL 1087
2020*	AL 4173-G / AL 4217-G	AL 2810-G / AL 2843-G	AL 5530 / AL 5588	AL 1118 / AL 1126
2021	AL 4328-G	AL 2921-G	AL 5712-A	AL 1154-G
2022	AL 4518-G AL 4543-G	AL 3024-G	AL 5884-G AL 5884-A-G	AL 1192-G AL 1192-A-G
2023	AL 4676-G AL 4693-G	AL 3129-G AL 3129-A-G	AL 6045-G	AL 1236-G
2024	AL 4845-G	AL 3247-G-B	AL 6210-G	AL 1276-G

*Resolution G-3565 required natural gas IOUs to set-aside a portion of 2020 auction allowance proceeds for Senate Bill 1477 (Stern 2018), recalculate the California Climate Credit amount, and resubmit the recalculated table via a separate advice letter.

Quick Reference Guide to CPUC's Cap-and-Trade Program Websites

Go here	To find out about…
Greenhouse Gas Cap-and-Trade Program	Basics and summary statistics
California Climate Credit	Climate Credit amounts and FAQ
Small Business Climate Credit	Info for small business owners and FAQ
California Industry Assistance	Eligibility requirements and FAQ
NAICS Codes Eligible for California Industry Assistance	Which industries qualify as EITE
CPUC Cap-and-Trade Program Decision-making	Related CPUC documents

CPUC Cap-and-Trade Decision-Making

How to Find and Receive Documents and Updates

CPUC Actions to Date

CPUC Cap-and-Trade Proceedings Table

Rulemakings

Advice Letters

Applications

Decision Approving the Return of Cap-and-Trade Program Funds for Electric IOUs

Advice Letters Approved for the Return of Cap-and-Trade Program Funds for Natural Gas IOUs

How can we help?

More Information

California State Campaigns