Air Resources Board releases additional details of cap-and-trade and mandatory reporting regulations
For immediate release
SACRAMENTO - Today the California Air Resources Board released a discussion draft that includes additional details of the cap-and-trade and the mandatory reporting regulations.
The draft proposals released today by ARB staff responded to direction from the Board and cover a range of program elements that incorporate allowances, market oversight, enforcement and offsets.
The additional details will be discussed at a workshop on July 15. Later in the summer there will be a formal public comment and review period.
Specific elements of the discussion draft include:
Initiation of the program elements in 2012, but extending the start of the compliance obligation to 2013.
Establishing precise benchmarks for the allocation of carbon allowances over the life of the program.
- Details regarding allocation for both public and investor-owned utilities.
- Changes to the timing of auctions.
- Clarification of penalty provisions as part of a broader process to ensure strong enforcement and market oversight.
- Clarification of the quantity of allowances a market participant will be allowed to hold.
- Changes to language to ensure reductions in greenhouse gases from the electricity sector.
- Provision to support the continued benefits of voluntary investment in renewable energy sources, consistent with the state’s efforts to drive continued growth in renewable energy.
- Clarification of offset program details, continuing the stringency of ‘compliance-grade’ offsets.
The ARB also released today proposed changes to the Mandatory Reporting Regulation designed to ensure that the state’s greenhouse gas reporting requirements complement the proposed changes in the cap-and-trade regulation.
The drafts and workshop information can be found at: http://www.arb.ca.gov/cc/capandtrade/capandtrade.htm .
The discussion draft for the mandatory reporting regulation is at: http://www.arb.ca.gov/cc/reporting/ghg-rep/ghg-rep.htm .
Information on the public workshop is at: http://www.arb.ca.gov/cc/capandtrade/meetings/meetings.htm#publicmeetings.