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Draft proposal includes additional details on allocation,
offsets, and enforcement. 


Release #:11-28
Date:07/07/2011

ARB PIO: (916) 322-2990
CONTACT:

Stanley Young
916-322-1309
916-956-9409(C)
syoung@arb.ca.gov






Air Resources Board releases additional details of cap-and-trade
and mandatory reporting regulations

Draft proposal includes additional details on allocation,
offsets, and enforcement

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.

ARB's mission is to promote and protect public health, welfare,
and ecological resources through effective reduction of air
pollutants while recognizing and considering effects on the
economy. The ARB oversees all air pollution control efforts in
California to attain and maintain health based air quality
standards.

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