Cap-and-Trade Program Summary of 2015-2022 Natural Gas Supplier Use of Allocated Allowance Value

Summary

California's Cap-and-Trade program faces the challenge of shielding natural gas ratepayers from compliance costs while promoting reduced natural gas consumption. The California Air Resources Board addresses this by allocating free allowances to natural gas suppliers, which must be used for ratepayer benefit through reduced compliance costs or redirected auction proceeds for credits and GHG reduction programs. As of 2022, the program is actively distributing billions in allowance value, with a significant portion going to direct compliance cost reduction and residential climate credits, though some proceeds, particularly from POUs, remain unspent for future GHG initiatives.

Key Facts

Source Document

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