Cap-and-Trade Program
Welcome This website provides information on implementing California’s greenhouse gas (GHG) cap-and-trade program. The program is a central element of California's Global Warming Solutions Act ( AB 32) and covers major sources of GHG emissions in the State such as refineries, power plants, industrial facilities, and transportation fuels. The regulation includes an enforceable GHG cap that will decline over time. ARB will distribute allowances, which are tradable permits, equal to the emission allowed under the cap.
Background The AB 32 Scoping Plan identifies a cap-and-trade program as one of the strategies California will employ to reduce the greenhouse gas (GHG) emissions that cause climate change. This program will help put California on the path to meet its goal of reducing GHG emissions to 1990 levels by the year 2020, and ultimately achieving an 80% reduction from 1990 levels by 2050. Under cap-and-trade, an overall limit on GHG emissions from capped sectors will be established by the cap-and-trade program and facilities subject to the cap will be able to trade permits (allowances) to emit GHGs.
The California Air Resources Board (ARB) has designed a California cap-and-trade program that is enforceable and meets the requirements of AB 32. The development of this program included a multi-year stakeholder process and consideration of potential impacts on disproportionately impacted communities. The program starts on January 1, 2012, with an enforceable compliance obligation beginning with the 2013 GHG emissions.
California is working closely with British Columbia, Ontario, Quebec and Manitoba through the Western Climate Initiative to develop harmonized cap and trade programs that will deliver cost-effective emission reductions. The WCI jurisdictions have formed a non-profit corporation, WCI, Inc. to provide coordinated and cost-effective administrative and technical support for its participating jurisdictions’ emissions trading programs. Just as with other voluntary agreements that ARB establishes with local air districts, states, federal government, and contractors, ARB’s agreementwith WCI, Inc. does not confer any decision making authority; decisions concerning the ARB’s cap-and-trade regulation are made by ARB at the direction of the Board. More details on the organization and operation of WCI, Inc., can be found at: http://www.wci-inc.org/
arb.ca.gov As part of the cap-and-trade program, ARB will hold quarterly allowance auctions each year. This will allow market participants to acquire allowances directly from ARB. ARB will hold its first auction in summer of 2012. As part of program implementation in 2012, staff will provide a detailed Instructional Guidance Document (coming soon!)and training to auction participants. In general, auction participants will have to register to participate in the auction and meet financial regulatory requirements.
Please check back soon for more information and related forms.
Cap-and-Trade Request for Proposals (RFP) Notices of Intent to Award: ARB has issued RFPs for the following services related to auctions: Auction and Reserve Sale Operator and Financial Services for Auction and Reserve Sale. ARB has posted Notices of Intent to Award for the cap-and-trade program RFPs. The vendors listed in the Notices are provided below with a link to each Notice.
arb.ca.gov
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