California Releases Cap & Trade Design to An Uncertain Fate


The California Air Resources Board (ARB) has released its proposal for a cap-and-trade program (PDF) just as voters weigh the pros and cons of an initiative that, if passed, would put a hold on the statutory basis for the program. While the cap-and-trade design has been in the works for some time now, its fate hinges on the outcome of the November 2 election.

Program Design

ARB's proposed cap-and-trade would start January 1, 2012, for electricity generators, including imports, and large industrial facilities, then expand to distributors of transportation fuels, natural gas and other fuels starting in 2015. Approximately 360 businesses, representing 600 facilities, would be covered.

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