CARB Cap-and-Trade Public Hearing

By CMTA Staff

Capitol Update, June 22, 2012 Share this on FacebookTweet thisEmail this to a friend

The California Air Resources Board (CARB) will hold a public Board Hearing on June 28th starting at 9:00 a.m. in Sacramento.  The hearing will consider amendments to the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms to allow for the Use of Compliance Instruments Issued by Linked Jurisdictions.

The Board will also consider making Quebec the first "linked" jurisdiction with California.  The AB 32 Implementation Group, which CMTA co-chairs, is submitting comments to oppose the linkage with Quebec. Excerpts are below:

The AB 32 IG supports the concept of a market mechanism such as well-designed cap and trade program that would minimize the costs of emission reductions under AB 32.  Linking such a program with other jurisdictions operating under the same rules with appropriate stringency could provide more emission reduction opportunities and minimize leakage of emissions and jobs out of California.

While we support linkage with other jurisdictions under the right circumstances, AB 32IG opposes the linkage proposal with Quebec at this time.  In brief, we are opposed because there are no significant benefits to the linkage and there are a myriad of unanswered questions and potential problems with California’s yet to be started market and linkage with Quebec at the outset would pose new and unnecessary risks and complications.

The California program has not begun, is untested, and systems are still being put in place for an auction in November and compliance obligations in 2013.  California should not link with Quebec until California’s own cap-and-trade system has had opportunity to function independently. Given the magnitude and complexity of California’s own program, adding an unnecessary additional layer of complexity by coordinating with a foreign jurisdiction at the outset would be imprudent.

There are two notices for the public hearing, which are available at: www.arb.ca.gov/lispub/comm/bclist.php.

The notices and the associated regulatory materials can be accessed at: www.arb.ca.gov/regact/2012/capandtrade12/capandtrade12.htm.

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