Today (July 27), the California Air Resources Board adopted Cap-and-Trade regulatory amendments extending the program to 2030. There will be two more follow on rulemakings noticed later this year to start implementing of the Community Monitoring Program (AB 617) approved by the Legislature earlier this month. There will also be a rulemaking to implement the provisions of the cap-and-trade bill that was passed by a supermajority of the Legislature (AB 398). Public commenters were unanimously supportive of the bill. There was no public comment by environmental justice representatives. Some industry groups (e.g., food processors) called on the ARB to make incentive funding available for conversion to advanced technologies.
The Board also approved a separate plan that will implement California's plan for compliance with the Clean Power Plan ("CPP"). That program will only affect combined cycle generators in the event that the Cap-and-Trade, the RPS and energy efficiency programs don't meet Obama's CPP goal for California. The Obama goal is less stringent than what was set by SB 32 for California's 2030 greenhouse gas targets. The Board noted that California's commitment and action on the CPP was needed to set an example. The ARB also believes that the CPP is "still the law of the land" despite the US Supreme Court stay and active litigation.
Please contact Brian Biering with any questions about these developments.