California Prepares to Implement Cap and Trade

Fri, 2010-12-24 16:52

Following the successful defeat of Proposition 23, California’s Air Resource Board recently finalized implementation rules for AB 32, the states cap and trade law. Once implemented in 2012, California will become the first state in the nation to regulate its greenhouse gas (GHG) emissions. The program will set an economy-wide cap, covering about 80% of the state’s emissions, in an effort to cut emissions to 1990 levels by 2020. To ease the transition into carbon regulation, the state will give all large industry emitters free emission allowances through 2014. That percentage will decrease until 2016 when all allowances will be sold at auction.