Monday, December 24, 2012
California Cap & Trade Program
The law vests considerable power in CARB to adopt policies and regulations. The act does not mandate a cap-and-trade program, but it requires CARB to consider market-based mechanisms when drafting regulations. After considering the options, including a carbon tax, CARB opted for a cap-and-trade approach that includes a gradually declining emissions cap.
A successful assault on CARB’s cap-and-trade regime simply would send CARB back to the drawing table either to modify the existing regulations or to formulate a new approach. The mandate to reduce greenhouse gas emissions significantly will not change. (Electric Light & Power, Nov/Dec 2012)