CAlifornia Cap-and-trade program will drive innovation and jobs, and will promote efficiency, clean energy



This page last reviewed January 26, 2011


Status of the Rulemaking

The formal Cap-and-Trade rulemaking began with the release of the Staff Report: Initial Statement of Reasons (ISOR).  The ISOR and formal rulemaking materials are available on the cap-and-trade rulemaking webpage. The Board Hearing on this item was held on December 16, 2010.  The Board considered the draft resolution which was approved with modifications as discussed at the Hearing. The final resolution will soon be available on the formal rulemaking webpage.


The AB 32 Scoping Plan identifies a cap-and-trade program as one of the strategies California will employ to reduce the greenhouse gas (GHG) emissions that cause climate change. This program will help put California on the path to meet its goal of reducing GHG emissions to 1990 levels by the year 2020, and ultimately achieving an 80% reduction from 1990 levels by 2050. Under cap-and-trade, an overall limit on GHG emissions from capped sectors will be established by the cap-and-trade program and facilities subject to the cap will be able to trade permits (allowances) to emit GHGs.

The California Air Resources Board (ARB) will work with stakeholders to design a California cap-and-trade program that is enforceable and meets the requirements of AB 32, including the need to consider any potential impacts on disproportionately impacted communities. Consistent with AB 32, ARB must adopt the cap-and-trade regulation by January 1, 2011, and the program itself must begin in 2012.

California is working closely with six other western states and four Canadian provinces through the Western Climate Initiative (WCI) to design a regional cap-and-trade program that can deliver GHG emission reductions within the region at costs lower than could be realized through a California-only program. To that end, the ARB rule development schedule is being coordinated with the WCI timeline for development of a regional cap-and-trade program.

If you would like to participate during future meetings, or receive future workgroup announcements, please sign up with ARB’s Cap and Trade Email Listserver.

Design Elements of the Cap-and-Trade Program

Contact Information:

For questions regarding ARB’s Cap-and-Trade Program, please contact: The Office of Climate Change at (916) 322-2037


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