Cap-and-Trade Regulation Amendments

Cap-and-Trade Regulation Amendments

The Cap-and-Trade Regulation establishes a declining limit on major sources of GHG emissions throughout California, and it creates a powerful economic incentive for significant investment in cleaner, more efficient technologies. CARB first formally adopted the Cap-and-Trade Regulation in October 2011. The Board adopted amendments to the Regulation in June 2012, October 2013, April 2014, September 2014, June 2015, July 2017, March 2018, and December 2018. The California Cap-and-Trade Program and Québec Cap-and-Trade System have participated in a linked carbon market since January 2014. In 2017, AB 398 was passed by a supermajority in the Legislature and included prescriptive direction on the design of the program from 2021 through 2030. The regulation is one of the measures adopted by CARB, pursuant to Health and Safety Code Sections 38500-38599 (AB 32), to reduce California’s greenhouse gas emissions and advance the State’s climate goals. It complements other measures to ensure that California cost-effectively meets its goals for GHG emissions reductions. CARB staff are developing amendments to update the Cap-and-Trade Regulation to align with the Assembly Bill (AB) 1279 target of reducing anthropogenic greenhouse gas emissions by 85 percent below 1990 levels and achieving carbon neutrality no later than 2045; and to reflect the 2022 Scoping Plan Update that shows a cost-effective and technologically feasible path to achieve AB 1279. This includes evaluation of program caps, updates to market rules, allowance allocation for industry and electric utilities, treatment of electricity imports from electricity markets and inclusion of carbon dioxide sequestration and removal.

Statewide

California Air Resources Board (ARB), California Baldwin Hills Conservancy (BHC), California Coachella Valley Mountains Conservancy (CVMC), California Coastal Commission (CCC), California Department of Corrections and Rehabilitation (CDCR), California Department of Fish and Wildlife, Bay Delta Region 3 (CDFW), California Department of Fish and Wildlife, Cannabis Program (CDFW), California Department of Fish and Wildlife, Central Region 4 (CDFW), California Department of Fish and Wildlife, Habitat Conservation Planning (CDFW), California Department of Fish and Wildlife, Inland Deserts Region 6 (CDFW), California Department of Fish and Wildlife, Marin Region 7 (CDFW), California Department of Fish and Wildlife, North Central Region 2 (CDFW), California Department of Fish and Wildlife, Northern and Eureka Region 1 (CDFW), California Department of Fish and Wildlife, South Coast Region 5 (CDFW), California Department of Forestry and Fire Protection (CAL FIRE), California Department of Housing and Community Development (HCD), California Department of Parks and Recreation, California Department of Resources Recycling and Recovery, California Department of Toxic Substances Control (DTSC), California Department of Transportation, District 1 (DOT), California Department of Transportation, District 10 (DOT), California Department of Transportation, District 11 (DOT), California Department of Transportation, District 12 (DOT), California Department of Transportation, District 2 (DOT), California Department of Transportation, District 3 (DOT), California Department of Transportation, District 4 (DOT), California Department of Transportation, District 5 (DOT), California Department of Transportation, District 6 (DOT), California Department of Transportation, District 7 (DOT), California Department of Transportation, District 8 (DOT), California Department of Transportation, District 9 (DOT), California Department of Transportation, Division of Aeronautics (DOT), California Department of Transportation, Division of Transportation Planning (DOT), California Department of Water Resources (DWR), California Energy Commission, California Fish and Game Commission (CDFGC), California Governor's Office of Emergency Services (OES), California Highway Patrol (CHP), California Natural Resources Agency, California Public Utilities Commission (CPUC), California Regional Water Quality Control Board, Central Coast Region 3 (RWQCB), California Regional Water Quality Control Board, Central Valley Fresno Region 5 (RWQCB), California Regional Water Quality Control Board, Central Valley Redding Region 5 (RWQCB), California Regional Water Quality Control Board, Central Valley Sacramento Region 5 (RWQCB), California Regional Water Quality Control Board, Colorado River Basin Region 7 (RWQCB), California Regional Water Quality Control Board, Lahontan South Lake Tahoe Region 6 (RWQCB), California Regional Water Quality Control Board, Lahontan Victorville Region 6 (RWQCB), California Regional Water Quality Control Board, Los Angeles Region 4 (RWQCB), California Regional Water Quality Control Board, North Coast Region 1 (RWQCB), California Regional Water Quality Control Board, San Diego Region 9 (RWQCB), California Regional Water Quality Control Board, San Francisco Bay Region 2 (RWQCB), California Regional Water Quality Control Board, Santa Ana Region 8 (RWQCB), California San Diego River Conservancy (SDRC), California San Joaquin River Conservancy (SJRC), California Santa Monica Mountains Conservancy (SMMC), California State Lands Commission (SLC), California Tahoe Conservancy, Central Valley Flood Protection Board, Colorado River Board, Delta Protection Commission, Delta Stewardship Council, Office of Historic Preservation, San Francisco Bay Conservation and Development Commission (BCDC), San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy (RMC), Santa Monica Bay Restoration, Sierra Nevada Conservancy, State Water Resources Control Board, Division of Drinking Water, State Water Resources Control Board, Division of Water Quality, State Water Resources Control Board, Division of Water Rights, Tahoe Regional Planning Agency (TRPA), California Native American Heritage Commission (NAHC), California Department of Conservation (DOC)

California Native American Heritage Commission (NAHC), California Department of Conservation (DOC)

Other (Other)

Other

Aesthetics, Agriculture and Forestry Resources, Air Quality, Biological Resources, Cultural Resources, Energy, Geology/Soils, Greenhouse Gas Emissions, Hazards & Hazardous Materials, Hydrology/Water Quality, Land Use/Planning, Mineral Resources, Noise, Transportation, Utilities/Service Systems