Cap-and-Trade bill amended

By CMTA Staff

Capitol Update, May 13, 2011 Share this on FacebookTweet thisEmail this to a friend

Assemblywoman Shannon Grove introduced AB 333 earlier this year to prevent the California Air Resources Board (CARB) from imposing greenhouse gas emission reduction requirements on facilities located in counties with high unemployment (7 percent or greater), a recognition that AB 32 (the California Global Warming Solutions Act of 2006) will impose new costs that could further harm the local economy and stall job growth.  The bill has been amended to remove this strict prohibition and instead ensure development of a cost-effective cap-and-trade program to protect the economy in all regions in the state.

AB 333 now requires CARB to report to the legislature information the CARB Board is scheduled to receive from CARB staff by July 31, 2011 regarding status and readiness of the cap and trade market to begin January 1, 2012.  This will bring legislators into the information loop on this major program and provide an opportunity to request additional data to inform decision-making on this and other government policies. If CARB reports that more time is needed to finalize many elements of the program, the bill would allow CARB the flexibility to move the program start date to January 1, 2013.  It may be necessary to test the market systems or allow participants more time to prepare for the market opening.

CMTA supports this effort to improve legislative oversight of cap-and-trade and provide CARB authority to start the program at the right time for the good of the California economy.

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