CMTA coalition files comments on Cap-and-Trade changes

By Michael Shaw

Capitol Update, May 11, 2018 Share this on FacebookTweet thisEmail this to a friend

Last week, a CMTA-led coalition filed comments in response to the April 26thworkshop where Air Resources Board (ARB) staff shared their current thinking on amendments to the Cap-and-Trade regulation in light of last year’s AB 398.

AB 398, the CMTA-supported deal to extend the Cap-and-Trade program to 2030, called on ARB to make a number of changes designed to contain costs, including setting a price ceiling for allowances sold in the quarterly auctions and ‘speed bumps’ designed to slow rapid increases in allowance prices.

Additionally, ARB staff, in response to direction from the Board, consider maintaining industry assistance factors (AFs) at 100 percent for the third compliance period (CP3) that encompasses 2018-2020. The discussion draft shared by ARB staff at the April 26thworkshop includes this critical component that ARB fought for during the Cap-and-Trade debate last year.

The coalition of CMTA and agricultural and business groups filed comments calling on ARB to maintain the AFs at 100 percent and set an appropriate price ceiling and speed bumps in order to minimize compliance costs while California moves to achieve carbon emission reduction goals. 

CMTA expects that ARB will formally kick off the regulatory process for these amendments in June or July with the goal of completing the amendment process by December of this year. 

Read more Energy articles

Capitol updates archive 989898989