Steven Hershkowitz, Transportation Electrification Policy Lead at Washington State Department of Commerce Energy Policy Office gave this presentation at Forth and BEF's PNW Utility EV Roundtable on November 16, 2023.

1. v1.5
Steven Hershkowitz
TRANSPORTATION ELECTRIFICATION POLICY LEAD
11.16.2023
Climate Commitment Act
Clean Transportation
Investments
Forth PNW Utility Roundtable

2. WASHINGTON STATE DEPARTMENT OF COMMERCE 2
Washington’s GHG Emissions Limits
Most recent data
2019: 101 MMT
Legal limits
2030: 50 MMT
2040: 27 MMT
2050: 5 MMT & net zero
MMT = million metric
tons of CO2 equivalent

3. WASHINGTON STATE DEPARTMENT OF COMMERCE 3
Washington’s Major Climate Policies
Law Description
Climate Commitment Act Caps the amount entities can pollute, requiring
them to buy “allowances” to exceed cap
Clean Energy
Transformation Act
Requires net-zero emission electricity by 2030, and
zero emissions by 2045
Clean Fuels Standard Requires a 20% reduction in the carbon intensity of
fuels by 2034
Motor Vehicle Emissions
Standards
Requires 100% of new light vehicles, between 40-
75% of trucks to be zero-emission by 2035
Clean Buildings Performance
Standard
Requires energy consumption to decline in buildings
over 20,000 square feet

4. Climate Commitment Act
“Cap” Background

5. WASHINGTON STATE DEPARTMENT OF COMMERCE 5
Declining cap on pollution
Who is covered?
• Roughly 75% of
statewide emissions
are covered
• Businesses that
exceed 25,000 metric
tons of CO2 equivalent
per year
Who isn’t?
• Aviation
• Marine
• Biofuels
• Agriculture
• Landfills

6. WASHINGTON STATE DEPARTMENT OF COMMERCE 6
What about electric utilities?
• Covered by the program
• Initially provided no-cost allowances to prevent double
regulation between Climate Commitment Act and Clean Energy
Transformation Act (CETA)
• Various rulemaking phases throughout implementation to align
with CETA
• No cost allowances must end by 2045

7. WASHINGTON STATE DEPARTMENT OF COMMERCE 7
Auction results so far
Auctions
• Quarterly auctions when
entities can buy allowances
• Floor and ceiling prices set
• Sealed-bid auctions
• Once all the allowances are
accounted for, the lowest
bid that successfully won
allowances is the price that
all bidders pay
Auctions Revenue raised
Q1 – February $300 million
Q2 – May $550 million
APCR (Special auction to
control prices) - August
$62 million
Q3 – August $356 million (state)
$184 million
(ratepayers)
APCR (Special auction to
control prices) - November
$260 million
(preliminary)
Total to date $1.5 billion (state)

8. CCA Investments
Clean transportation focus

9. WASHINGTON STATE DEPARTMENT OF COMMERCE 9
10

10. WASHINGTON STATE DEPARTMENT OF COMMERCE 10
Climate Investments by Category,
2023-25 Biennium
Clean Energy Building
Decarbonization
•Misc
Ag, Seq. &
Methane
Clean Transp. Climate Resilience Environ. Justice
•$1,200,000,000
•$139,322,000
CCA Funds Enacted Other Funds Enacted
•$1,000,000,000
•$800,000,000
•$600,000,000
•$400,000,000
•$200,000,000
•$0
Dollars
•$980,732,000
•$242,997,000 $232,693,000
•$161,280,000
•$3,500,000 •$294,797,000
•$317,109,000
•$140,139,000
•$205,102,000 •$30,553,0...

11. WASHINGTON STATE DEPARTMENT OF COMMERCE 11
CCA transportation investments (millions)
23-25 25-27 27-29
1 Ferries $92.2 $74.2 $70.2
2 Rail, Freight, Ports $109.1 $27.0 $27.0
3 Alt Fuel/Green Transpo $185.8 $34.0 $59.0
4 Active Transportation $176.5 $187.0 $146.9
5 Transit $406.3 $407.9 $415.6
Total $969.9 $730.1 $718.7
Source: Office of Program Research, WA House of Representatives

12. WASHINGTON STATE DEPARTMENT OF COMMERCE 12
Zero-emission vehicle & charging/fueling
investments (millions)
Program 23-25 25-27 27-29
Ferry electrification and shore power $135.2 $74.2 $70.2
Trucks and off-road equipment $133 $0 $0
Zero-emission transit buses $39.4 $39.4 $39.4
Highway charging/fueling $35.1 $0 $0
State fleet electrification $10.2 $0 $0
Electric car shares and e-bikes $9 $9 $9
Rail electrification $5 $0 $0
Source: Office of Program Research, WA House of Representatives

13. WASHINGTON STATE DEPARTMENT OF COMMERCE 13
Opportunities for electric utilities
Utility connections Opportunities
Distribution system • Proactive planning, project coordination, and make-ready investments
• Participate in Commerce cost assessment project (launching in 2024)
Charging and hydrogen
fueling programs
• Utilities can be partners on applications for project funding depending
on the program (especially charging/hydrogen)
• Can help drive siting of charging infrastructure that is best for grid
Truck and bus programs • Utility vehicles may be eligible
• Utilities can work with WSDOT to support fleets who participate
Gap filling • Utilities can spend small portion of ratepayer dollars on transportation
electrification programs, filling gaps in state investments
• Biggest need is residential charging

14. Thank you!
www.commerce.wa.gov
Steven Hershkowitz
TRANSPORTATION ELECTRIFICATION POLICY LEAD
Steven.Hershkowitz@commerce.wa.gov
(360) 688-4006