CARB Adopts Final GHG Cap-and-Trade Program
After surviving a highly publicized ballot box challenge and lawsuit, the California Air Resources Board ("CARB") unanimously adopted a final greenhouse gas ("GHG") cap-and-trade program regulation. The cap-and-trade program is considered to be the cornerstone of CARB's implementation of California's landmark Global Warming Solutions Act of 2006, Assembly Bill 32 ("AB 32"). The first of CARB's cap-and-trade program auctions for allowances for use in 2013 will be held August 15 and November 14, 2012.
Major industrial sources and electric utilities must begin compliance with the cap-and-trade program in 2013. By 2015, distributors of transportation fuel and natural gas also become obligated to comply with cap-and-trade program requirements. In addition, the cap-and-trade program will likely create a market for CARB-certified offset projects in areas of livestock management, elimination of ozone depleting substances, urban forest projects, and U.S. Forest projects.
To view the full summary of the program, follow this link.