Gino DiCaro

Bill would give CARB more time to formulate Cap-&-Trade

By Gino DiCaro, VP, Communications

Capitol Update, June 24, 2011 Share this on FacebookTweet thisEmail this to a friend

AB 333 (Shannon Grove, R- Bakersfield) would allow CARB to adjust the schedule for opening a cap-and-trade program under AB 32 (the Global Warming Act). CARB would also be required to provide vital information to the legislature on the status of the program. 

The cap-and-trade market is scheduled to open January 1, 2012, yet many elements of the regulation are incomplete, including allocation of allowances to companies and industry sectors. CARB has not hosted any public workshops in 2011 to hear stakeholder comments on these issues.

Businesses need time to plan for allowance allocation costs.  Large manufacturers, refineries, food processors, cement plants, and others will receive free allowances, but only up to the level of emissions established by CARB for each industry and entity. The amount allocated to each company will likely be fewer than necessary to operate as planned, thus companies will need to make difficult economic decisions to purchase more allowances on the market, adjust facility production to lower emissions, or pay for technologies to lower emissions.
AB 333 is an urgency measure requiring a 2/3rds vote. It will be heard this Monday, June 27, in the Assembly Natural Resources Committee.



 

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