Cap and Trade rulemaking picks up steam

By CMTA Staff

Capitol Update, May 28, 2010 Share this on FacebookTweet thisEmail this to a friend

The California Air Resources Board plans to issue a greenhouse gas cap and trade program regulation by September 2010, to be approved by the CARB by year end.  Concepts for the rule, part of the scoping plan of regulations to meet reduction targets in the state’s climate bill AB 32, were released at a workshop on May 17. The assumption is that California, some Canadian provinces and New Mexico would be prepared to participate when the market starts in 2012.

Covered entities are those with greenhouse gas emissions more than 25,000 tons per year. To minimize emissions leakage and protect the economy, CARB proposes free allocation of allowances to industry based on efficiency benchmarks determined for each industry. However, thorny issues to be resolved include the geographic scope of analysis for benchmarking, how to develop reliable information on relative efficiencies, and the treatment of industries with few comparable competitors.  These and other topics including offsets, monitoring, enforcement, and transition assistance will be considered in a series of workshops in June.

CMTA is establishing a “Cap and Trade Working Group” to follow the development of the rule and advocate for rationale allocation of permits to industry and sensible cost containment mechanisms.  For more information and to participate in the working group please contact Dorothy Rothrock at 916-498-3319 or drothrock@cmta.net.

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