Tara Kaushik is a Partner for Holland & Knight's
San Francisco office
On Jan. 20, 2017, the California Air Resources Board (CARB)
released an updated Scoping Plan to reduce state greenhouse gas
emissions (GHGs). Under the state's climate change law
known as Assembly Bill (AB) 32, CARB is required to produce a
scoping plan every five years. The proposed plan has the
potential to impact the state's cap and trade program and
carbon markets for the long term.
The proposed plan outlines options to meet California's
aggressive goals to reduce GHGs by 40 percent below 1990 levels by
2030. The State codified the 40 percent goal in legislation
enacted last year (Senate Bill 32). The proposed plan would
extend the state's cap-and-trade program — in which CARB
auctions off emissions allowances to refiners, utilities and other
GHG sources as the emissions cap gradually declines — to
cover the years 2020 to 2030. The proposed plan would extend the
cap-and-trade program and
