California's cap-and-trade compliance obligations became
binding on January 1, 2013, culminating six years of regulatory
proceedings. Although the California Air Resources Board
(CARB) deemed the first auction for emission allowances in November
a success, revised statistics revealed that two-thirds of all bids
submitted were disqualified. In other recent developments, the
state's Public Utility Commission (CPUC) announced how revenues
from the auctions will be allocated, and CARB (the program
administrator) set the stage for emissions-offset
projects. The second allowance auction is scheduled for
February 19.
Authorized by the Global Warming Solutions Act of 2006,
California's cap-and-trade program aims to reduce the
state's greenhouse gas emissions to 1990 levels by 2020, a modest goal given the state's numerous
other initiatives aimed at reducing emissions. Approximately
75 participants, comprising utilities to large financial
institutions, were authorized to bid
