The California Air Resources Board (CARB) has released a Preliminary Draft Regulation for a California Cap-And-Trade Program outlining on a conceptual level how to design a broad-based multi-sector cap-and-trade program that works with complementary measures to reduce emissions and meet the 2020 statewide greenhouse gas emissions (GHG) limits as required under the California Global Warming Solutions Act of 2006 (AB32).
The draft regulation states that voluntary renewable energy purchasers will have the power to reduce the level of the cap, thus reducing the overall amount of GHG allowed to enter the atmosphere from the electricity sector. However, in no event would the size of this adjustment exceed a pre-determined percentage of the total allowances from the compliance period in question.
For each compliance period, an estimate of voluntary renewable electricity purchases could be determined and the base allowance budgets adjusted according to the following steps — an initial estimate of the adjustment in allowance budgets needed, submission of claims, and a subsequent true-up of budget adjustments. This method of addressing reductions from the voluntary renewable energy sector is similar to that used by the Regional Greenhouse Gas Initiative.
The conceptual framework described in the Preliminary Draft is the result of public consultation and meetings to discuss the appropriate structure of the cap-and-trade program. CARB emphasized that this document marks the beginning of the next phase of the cap-and-trade rulemaking and is seeking public comment on all portions of the draft. CARB will hold a public meeting to discuss the draft regulations on December 14.
Additional Information - Preliminary Draft Regulation for a California Cap-And-Trade Program (PDF 804 KB) Download Adobe Reader
Additional Information - 2009 Public Meeting to Discuss the Preliminary Draft Regulation
Additional Information - California Air Resources Board's Cap-and-Trade Web site