California Adopts Historic Cap-and-Trade Program for Greenhouse Gas Emissions

more+
less-

Last night, California made history by enacting the nation’s first statewide, comprehensive cap-and-trade program aimed at reducing greenhouse gas emissions. As the cornerstone of California’s ambitious effort to implement Assembly Bill 32 (“AB 32”)— the Global Warming Solutions Act of 2006—the cap-and-trade program was unanimously approved by the California Air Resources Board (“CARB”) on October 20, 2011.

KEY PROGRAM FEATURES

AB 32 requires the state to reduce overall emissions to 1990 levels by 2020. The cap-and-trade program, intended as a flexible, market-based mechanism to reduce greenhouse gas emissions, is a controversial method to achieve this goal. The program sets a fixed limit on greenhouse gas (“GHG”) emissions from major sources (the “cap”) and reduces those emissions by gradually lowering the aggregate cap each year. Regulated businesses are issued allowances at the start of the program, and may purchase and sell those allowances, as well as offset credits, at auction or in private transactions (the “trade”).

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×