Cap-and-Trade Regulation
On Oct. 20, 2011, the California Air Resources Board (CARB) approved final regulations establishing the United States’ first economy-wide greenhouse gas (GHG) cap-and-trade program, pursuant to authority granted under the California Global Warming Solutions Act of 2006 (AB 32). Once approved by the California Office of Administrative Law, the final regulation will go into effect on Jan. 1, 2012, with the first compliance period for which covered entities must hold compliance instruments set to begin on Jan. 1, 2013. The action concludes a rulemaking process that has spanned nearly three years and was interrupted by a court order that temporarily barred CARB from proceeding with development of the cap-and-trade program under AB 32.
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