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ARTICLE · 17 JANUARY 2011

California Adopts First Mandatory, Economy-Wide Cap and Trade Program

Jones Day
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On December 16, 2010, the California Air Resources Board ("CARB") approved a resolution ordering its Executive Officer to finalize, with certain changes, the greenhouse gas cap and trade regulations proposed by CARB on October 29, 2010.

United StatesEnvironment
Thomas Donnelly
Thomas Donnelly
Casey Fernung
Casey Fernung
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The Climate Report - Winter 2011

On December 16, 2010, the California Air Resources Board ("CARB") approved a resolution ordering its Executive Officer to finalize, with certain changes, the greenhouse gas cap and trade regulations proposed by CARB on October 29, 2010. Once published, CARB will allow 15 days for public comment on the latest changes, and the Executive Officer will respond to any such comments, make any other "conforming" modifications deemed appropriate, and then finalize the cap and trade regulations.

California's cap and trade program will serve as a U.S. test case for mandatory, economy-wide greenhouse gas market systems.

Existing market-based programs, like the Regional Greenhouse Gas Initiative and the Climate Action Reserve, are either voluntary in nature or mandatory only for certain economic sectors. California's program, however, represents the first cap and trade program for greenhouse gas emissions that is mandatory for numerous

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