Climate Commitment Act (CCA)

Last updated June 2, 2026

Overview of Washington State’s cap-and-invest program

In 2021, the Washington State Legislature passed the Climate Commitment Act (CCA), which created an economy-wide, comprehensive, market-based program (called the “cap-and-invest” program) to reduce greenhouse gas emissions (GHG) in the state. The program started on January 1, 2023.

The program puts a price on each ton of GHG emitted in the state by covered entities (including PSE), which in turn increases the cost to provide electricity and natural gas to PSE’s customers. The premise behind the State’s program is that higher prices are intended to encourage people and businesses to reduce the amount of GHGs they emit over the long-term.

As a covered entity, PSE must participate in the State’s cap-and-invest program by acquiring compliance instruments (allowances or offsets) equal to its systems’ emissions. PSE must surrender the compliance instruments for the GHG emissions associated with its electric and natural gas operations to Department of Ecology annually.

Learn more about Washington state’s cap-and-invest program

The Washington State Legislature directed the Department of Ecology to adopt rules to oversee, hold compliance instrument auctions, and enforce the cap-and-invest program to meet the state’s GHG emission reduction targets. Revenue collected by the state through the cap and invest program auctions is directed by the state primarily to fund projects intended to reduce GHG emissions, enhance climate resilience, and improve public health. To learn more, visit the Department of Ecology's website.

CCA on your PSE bills

The Washington Utilities and Transportation Commission (WUTC) approves the new rates for natural gas and electric customers based on the cost of compliance with the state’s cap-and-invest program. The first tariffs for CCA compliance were approved in 2023 for natural gas customers and in 2025 for electric customers.

Electric customer rate impacts

Beginning August 1, 2025, electric rates increased to cover the cost of allowances PSE needs to purchase to comply with the CCA and cover emissions from electric generation under the law. As approved by the WUTC, CCA electric compliance charges and mitigation credits are integrated in the electricity charge and in the power cost line items on customer bills.

Natural gas customer rate impacts and bill display

Since October 1, 2023, PSE natural gas customers have been paying a charge for PSE’s compliance with the cap-and-invest program associated with the natural gas system GHG emissions. Based on instruction from the WUTC, this charge initially appeared on residential customer bills as part of the line item "Other natural gas charges and credits" and was integrated into the "Delivery" or "Transportation Service Commodity" charge for commercial and industrial customers. By June 6, 2026, this compliance charge will appear on natural gas customer bills as a distinct line item labeled "CCA Customer Charge."

Some of PSE’s natural gas customers will continue to see a bill credit labeled "CCA Customer Benefit" (previously labeled "State Carbon Reduction Credit"). As required by the CCA, identified low-income customers will receive a bill credit for the entire "CCA Customer Charge," and other customers could see a partial per-customer bill credit based on available remaining mitigation funds. Accordingly, the total net bill impact will vary for customers based on household income and size, energy usage, and other factors; and for some customers will vary by month.

PSE’s natural gas system emission reduction programs funded by CCA

Based on interested party engagements and WUTC approval, PSE launched (in 2024) voluntary natural gas emission reduction programs for low-income households in single-family homes and in multi-family buildings and small businesses in PSE’s named communities funded by the CCA.

To learn more about PSE’s CCA Decarbonization Programs, see:

Additionally, in December 2025, the WUTC approved PSE’s proposal to conduct in 2026 a CCA Gas Decarbonization Request-for-Proposals (RFP) soliciting ideas and proposals for GHG reductions on PSE’s natural gas system. The RFP has been released on May 15, 2026. To learn more about PSE’s CCA Gas Decarbonization RFP, visit PSE’s Resource Acquisitions webpage.