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The California Air Resources Board (ARB) will make available two
new reports on Cap-and-Trade Program activity on December 16,
2016 at noon (12:00 PM) Pacific Time.   The first report provides
a detailed summary of covered entity compliance status for the
first compliance period (2013-2014) of the California
Cap-and-Trade Program.  The second report is the Summary of
Transfers Registered in CITSS by California and Québec Entities
in 2014, which provides details on the number of completed
transfers, the quantity of compliance instruments transferred
between market participants, and the weighted average prices of
the transfers.

The two reports will be posted at:
http://www.arb.ca.gov/cc/capandtrade/capandtrade.htm.  

BACKGROUND: 

The California Cap on Greenhouse Gas Emissions and Market-Based
Compliance Mechanisms Regulation (Regulation) was adopted by the
California Air Resources Board in October of 2011, and formally
went into effect January 1, 2012.  Entities subject to the
Regulation have a compliance obligation for their greenhouse gas
emissions beginning on January 1, 2013.  The Regulation was
amended in early 2013 to link the California and Québec programs
beginning January 1, 2014. 

The first compliance period status report will contain a detailed
list of covered entities and a tabulation of the compliance
instruments they submitted to meet their obligations for the
first compliance period.  On November 4, 2014, covered entities
were required to surrender compliance instruments to cover 30% of
their 2013 emissions.  ARB published a report for 2013 compliance
at:
http://www.arb.ca.gov/cc/capandtrade/2013compliancereport.xlsx. 
On November 2, 2015, covered entities were required to surrender
compliance instruments to cover the remaining 70% of their 2013
emissions, and 100% of their 2014 emissions.  For this compliance
surrender, both vintage 2013 and 2014 allowances were eligible
for compliance use.  Covered entities also may have used offset
credits up to the quantitative usage limit specified in section
95854 of the Regulation (up to eight percent).  Future vintage
year allowances generally could not be used to satisfy the first
compliance period obligation, with the limited exception of
certain entities who have received 2015 and 2016 true-up
allowances as described in section 95894 of the Regulation.  

The second data report tabulates the transfers of compliance
instruments made through the Compliance Instrument Tracking
System Service (CITSS) in 2014.  For transfers of allowances, the
table provides a breakdown by vintage and whether the transfer
was priced or unpriced.  Most transactions between independent
market participants, such as bilateral transactions or
transactions cleared on the Intercontinental Exchange (ICE), are
conducted at a price that is entered into the transfer request in
CITSS.  However, there are numerous transactions made without an
explicit price.  These include, for example, transfers between
corporate associates, between an electric distribution utility
and a generator as part of a power purchase agreement, between
publicly-owned utilities, or as part of an agreement that
transfers compliance instruments with other products.  The table
contains a separate accounting of transfers of offsets, again
with a breakdown between priced and unpriced transfers.  Offsets
transfers are further broken down by project type.

Additional Information


If you have any questions about the information in this email or
the information contained in the tables, please contact Jason
Gray, Manager, Market Monitoring Section, at (916) 324-3507 or 
jason.gray@arb.ca.gov.


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