Wash. Admin. Code § 194-40-110 - Methodologies to incorporate social cost of greenhouse gas emissions
(1)
(a) Each utility must incorporate the social
cost of greenhouse gas emissions as a cost adder for all relevant inputs when
evaluating and selecting conservation policies, programs, and targets;
developing integrated resource plans and clean energy action plans; and
evaluating and selecting intermediate term and long-term resource
options.
(b) The greenhouse gas
emissions cost adder may be adjusted to account for any explicit tax or fee on
greenhouse gas emissions that is known or assumed in the resource
analysis.
(2) A utility
may comply with the requirements of subsection (1) of this section by using one
of the following analytical approaches, as appropriate and consistent with the
utility's overall analytical approach for resource planning, evaluation, and
selection:
(a) Performing a resource analysis
in which it increases the input cost of each fossil fuel by an amount equal to
the social cost of greenhouse gas emissions value of that fuel;
(b) Conducting a resource analysis in which
alternative resource portfolios are compared across multiple scenarios on the
basis of cost, risk, and other relevant factors and the aggregate social cost
of greenhouse gas emissions is added to the cost of each resource
portfolio;
(c) If the utility does
not use a comprehensive resource portfolio evaluation and optimization
approach: Adding the social cost of greenhouse gas emissions to the expected
market price of electricity, using an estimate of the emissions rate of
marginal generating resources; or
(d) Using another analytical approach that
includes a comprehensive accounting of the difference in greenhouse gas
emissions and social cost of greenhouse gas emissions between resource
alternatives.
(3) Any
methodology used to comply with this rule may assume that the social cost of
greenhouse gas emissions cost adder does not affect short-term operations or
dispatch decisions after energy resources are acquired and placed into
service.
(4) Any methodology used
to comply with this rule must ensure that the social cost of greenhouse gas
emissions cost adder is accounted for without unreasonable duplication or
double counting.
(5) The social
cost of greenhouse gas emissions values used to meet the requirements of this
chapter are specified in WAC 194-40-100.
Notes
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