Cap-and-Trade Program Summary of 2015-2020 Natural Gas Supplier Use of Allocated Allowance Value

Summary

California implemented a Cap-and-Trade Program for natural gas suppliers to reduce greenhouse gas emissions while shielding ratepayers from increased costs. The California Air Resources Board allocates free allowances, requiring suppliers to use their value for ratepayer benefit, either through direct program compliance, returning auction proceeds as credits, or funding emissions reduction initiatives like building decarbonization. As of 2020, the program is in progress, with significant funds distributed as ratepayer credits and a portion reserved for new electrification programs.

Key Facts

Source Document

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