One Year of Carbon Auctions in Washington State

A little over one year ago, Washington State held its first allowance auction under the state’s cap-and-invest program. The cap-and-invest program is a market-based carbon pricing scheme that seeks to reduce, over time, statewide emissions of greenhouse gases. The program ensnares conventional propane and, as a result, has impacted wholesalers and marketers who do business in the Evergreen State.

Washington’s Department of Ecology held four allowance auctions in 2023:

• Auction #1, February 28: 6.19 million allowances sold | $48.50 per allowance
• Auction #2, May 31: 8.59 million allowances sold | $56.01 per allowance
• Auction #3, August 30: 8.59 million allowances sold | $63.03 per allowance
• Auction #4, December 6: 7.14 million allowances sold | $51.89 per allowance

As of the 2022 sales report from PERC, the industry sold 207 million gallons of propane in Washington State, making it the 16^th largest state market in the country. For more information, contact NPGA’s Director of State Affairs, Jacob Peterson.