Cap-and-Trade regulation update

By CMTA Staff

Capitol Update, July 15, 2011 Share this on FacebookTweet thisEmail this to a friend

On July 9 the California Air Resources Board (CARB) released a draft proposed regulation to fill-in details of the cap-and-trade program and make conforming changes to the mandatory reporting regulation for greenhouse gases.

The additional details are being discussed today, July 15th, at a workshop. It is anticipated that late in July CARB will formally release the update to the regulation, starting a 15-day clock for comments on the record.  The rule needs to be finished and submitted to the Office of Administrative law by October 28, 2011 to meet the one-year deadline since the regulation was proposed in October 2010.

Topics in the proposed draft include:

  • Extending the start of the compliance obligation to 2013.
  • Establishing precise benchmarks for the allocation of carbon allowances over the life of the program.
  • Details regarding allocation for both public and investor-owned utilities.
  • Changes to the timing of auctions.
  • Clarification of penalty provisions as part of a broader process to ensure strong enforcement and market oversight.
  • Clarification of the quantity of allowances a market participant will be allowed to hold.
  • Changes to language to ensure reductions in greenhouse gases from the electricity sector.
  • Provision to support the continued benefits of voluntary investment in renewable energy sources, consistent with the state’s efforts to drive continued growth in renewable energy.
  • Clarification of offset program details, continuing the stringency of ‘compliance-grade’ offsets.

The drafts and workshop information can be found at:
www.arb.ca.gov/cc/capandtrade/capandtrade.htm.

The discussion draft for the mandatory reporting regulation is at:
www.arb.ca.gov/cc/reporting/ghg-rep/ghg-rep.htm.

Information on the public workshop is at: 
www.arb.ca.gov/cc/capandtrade/meetings/meetings.htm#publicmeetings.

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