CARB adopts cap & trade

By CMTA Staff

Capitol Update, Dec. 17, 2010 Share this on FacebookTweet thisEmail this to a friend

This week the California Air Resources Board (CARB) adopted a cap and trade regulation under AB 32, the Global Warming Solutions Act, passed in 2006.

The market will start on January 1, 2012.  Between now and then CARB will be building the market structure and finalizing important details left undone in the regulation. Also adopted were a series of resolutions for additional work to be done, described by one board member as “longer than Santa’s list.” Included is a commitment to perform an update by July 31, 2011 on the progress being made on implementation issues, among which is the status of the Western Climate Initiative, estimates of expected offset supplies, a schedule for training covered entities, and finalization of the allowance allocation system.  There will also be more work on the emissions intensity and trade exposures of different industries prior to the start of the program.

CARB believes that it has legal authority to conduct an auction under the program, but does not have authority to direct expenditure of the monies.  CARB resolved to deposit 10 percent of the auction revenues into the Air Pollution Control Fund for appropriation by the legislature on programs for GHG reductions and green collar employment in disadvantaged communities.

CMTA will be working on implementation issues through the CMTA Energy Committee and the CMTA Climate Change Advisory Committee.  The Energy Committee is for manufacturer members only and has an additional member fee. Contact Loretta Macktal at lmacktal@cmta.net if you are interested in joining one or both of these committees.

To review hearing materials, go to: www.arb.ca.gov/regact/2010/capandtrade10/capandtrade10.htm

Listen to CMTA Vice President, Government Relations, Dorothy Rothrock’s cap & trade comments on an NPR radio interview this week at www.youtube.com/calmanufacturers#p/u/0/c_P6yamcsTs

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