Section 173-442-170. Limitations on the use of allowances.

(1) A covered party may use allowances from GHG emission reduction programs to generate ERUs when ecology determines:

(a) The allowances are issued by an established multisector GHG emission reduction program;

(b) The covered party is allowed to purchase allowances within that program; and

(c) The allowances are derived from methodologies congruent with chapter 173-441 WAC.

(2) A covered party may demonstrate compliance through the acquisition and use of allowances to generate ERUs based on the limitations in this subsection.

(a) A covered party may use a quantity of allowances to generate ERUs for a compliance period that does not exceed the applicable percentage in Table 3 of the covered party's compliance obligation:

Table 3

Percentage Limits on Use of Allowances for a Compliance Period

(b) A quantity of allowances intended for use consistent with (a) of this subsection must be divided so that the proportion of those allowances from a single vintage year does not exceed the percentages in Table 4. The originating GHG emission reduction program assigns the vintage year for each allowance.

Table 4

Vintage Year Requirements for a Quantity of Allowances Used Within a Compliance Period

(3) The covered party must document that an allowance used to generate an ERU has been invalidated from use or placed into a permanent holding account in its originating GHG emission reduction program.

[Statutory Authority: Chapters 70.94, 70.235 RCW. WSR 16-19-047 (Order 15-10), § 173-442-170, filed 9/15/16, effective 10/16/16.]

Chapters 70.94, 70.235 RCW. WSR 16-19-047 (Order 15-10), § 173-442-170, filed 9/15/16, effective 10/16/16.

Rules

173-441,