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Analyzing the critical energy and environmental issues of the day

Category Archives: Cap and Trade

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California’s Cap-and-Trade Regulations Extended Through 2030 – A Victory for Climate Policy and Business Alike

Posted in California, Cap and Trade
On July 17, 2017, the California Assembly and the Senate voted to extend California’s Cap-and-Trade Program from 2021 to 2030 (Assembly Bill (“AB”) 398). Governor Brown is widely expected to sign the bill in the coming weeks. AB 398 is considered as a major win for Governor Brown and his commitment to fight climate change,… Continue Reading

California’s New Climate Change Law Tempered by Uncertainty About Its Cap and Trade Program

Posted in California, Cap and Trade, Climate Change
California Governor Jerry Brown signed Senate Bill 32 last week codifying into law his office’s emission reduction goal of cutting greenhouse gas emissions to 40% below the 1990 level by 2030. By signing this bill, Governor Brown made his prior Executive Order B-30-15 part of California’s overall climate change law by adding a new section… Continue Reading

CARB Proposed Amendments to Extend the Cap-and-Trade Program Beyond 2020 Overshadow Significant Revisions to the Program Itself

Posted in California, Cap and Trade, Rulemakings
On August 2nd, the California Air Resources Board (CARB) formally released its Proposed Amendments to the California Cap-and-Trade Program.  CARB’s proposed amendments are meant to extend the program through 2030 and ensure continued emissions reductions through 2050.  Notably, the amendments are also intended to broaden the program through linkage with the Ontario program beginning in… Continue Reading

California Air Resources Board-Commissioned Report Recommends Ways to Avoid Price Volatility in California’s Cap and Trade Market

Posted in California, Cap and Trade
Concerned about the potential for price volatility in its cap and trade program, the California Air Resources Board (CARB) commissioned the Market Simulation Group (MSG) at the University of California Energy Institute to look at the issue and make recommendations.  The MSG issued its report last month, entitled “Report of the Market Simulation Group on… Continue Reading

Regional Greenhouse Gas Initiative to Lower Emissions Cap

Posted in Cap and Trade, Climate Change
As predicted earlier, the U.S. Northeast’s cap-and-trade program, RGGI (Regional Greenhouse Gas Initiative) will reduce its cap, which was above current pollution levels.  The inflated cap depressed the RGGI permit price for carbon credits to under $2, way below the projected $20-$30 (causing New Jersey’s Chris Christie to pull New Jersey out of RGGI).  The… Continue Reading

Qualifying Advanced Energy Project Program: IRS Announces Second Phase

Posted in Cap and Trade, Climate Change, Federal, Renewables
DWT tax partner Pamela Charles reports: The IRS has announced the second phase of the qualifying advanced energy project program to distribute the Section 48C tax credits that are available for reallocation now that the first phase of the program has been completed (see IRS Notice 2013-12).  To be considered for an allocation of credits in the… Continue Reading

Court Rejects Challenge to California’s Carbon Offsets Program

Posted in California, Cap and Trade, Climate Change, Litigation
A California state judge in San Francisco has rejected a challenge to California’s carbon offsets program, ruling that regulators have the authority to include the mechanism in the cap-and-trade program for greenhouse gases. San Francisco Superior Court Judge Ernest Goldsmith ruled Friday that the state Air Resources Board was authorized to use offset protocols under the guidelines… Continue Reading

California GHG Emissions Auction Part of the Cap and Trade Program Challenged by the Chamber

Posted in California, Cap and Trade, Climate Change, Renewables
California’s largest business lobby filed a lawsuit yesterday seeking to invalidate California’s first greenhouse gas (GHG) emissions allowance auction (part of the California cap and trade program) scheduled for today.  The California Chamber of Commerce asserts that AB 32, California’s global warming law, did not authorize the state to raise funds by allocating GHG emissions… Continue Reading

Auction Today, Results Monday (part of the California Cap and Trade Program)

Posted in California, Cap and Trade, Climate Change, Litigation, Renewables
Get your auction here!  Today is the day. The California Air Resources Board (CARB) is holding an auction of greenhouse gas allowances for use in the California cap and trade program today, November 14, 2012, from 10:00 a.m. until 1:00 p.m (PST).  It is CARB’s first auction and all eyes are on California to see… Continue Reading

California’s Cap and Trade Allowances Auction: Canary in a Coal Mine

Posted in California, Cap and Trade, Climate Change
California holds its first Cap and Trade Allowances auction on Wednesday November 14, 2012.   Some see this as a make-or-break time, the test case to see if a Cap and Trade program for greenhouse gas emission allowances can get off the ground.  The first auction was originally scheduled for August 2012.  Some industry groups are… Continue Reading

Pre-AB 32 Contracts: Are generators entitled to some relief for their greenhouse gas costs?

Posted in California, Cap and Trade, Climate Change, Renewables, Rulemakings
Generators that may have executed bilateral contracts with a California utility prior to the passage of Assembly Bill 32 (AB 32) in California such that their contract does not have specific terms and conditions assigning greenhouse gas cost responsibility should be aware that the matter of whether the generator is entitled to some sort of… Continue Reading

Senate Bill 1018 Throws Monkeywrench Into Greenhouse Gas Allowance Revenues

Posted in Cap and Trade, Climate Change, Federal, Rulemakings
The California Public Utilities Commission has been holding a rulemaking since March 2011 to determine what to do with the revenues that utilities will receive as a result of the direct allocation of greenhouse gas allowances to electrical distribution utilities in the state as a result of the new cap and trade program. As you… Continue Reading

CARB’s Cap and Trade program: Enviro Groups Make New Challenge at EPA

Posted in Cap and Trade, Climate Change, Federal
According to California Energy Markets, a number of environmental  justice groups filed a complaint on June 8 with the EPA challenging CARB’s cap and trade program.  The groups appear to include the same organizations that filed an earlier complaint in San Francisco Superior Court. The arguments appear to be different.  In the court action, the… Continue Reading

First Auction of Greenhouse Gas Emission Allowances Delayed by California Air Resources Board

Posted in California, Cap and Trade, Climate Change
Important news from the Air Resources Board. Mary Nichols, Chair of the California Air Resources Board, announced at a state Senate panel yesterday that the first auction of greenhouse gas emission allowances would be delayed by 3 months and held in November.  This makes sense as no protocols regarding how the auction would be conducted… Continue Reading

Low Carbon Fuel Standard Rulemaking at California Public Utilities Commission to Continue

Posted in Cap and Trade, Climate Change, Rulemakings
Apparently the folks at the California Public Utilities Commission in San Francisco aren’t too worried about the recent ruling declaring California’s Low Carbon Fuel Standard unconstitutional. Yesterday, an Administrative Law Judge at the Commission issued a ruling requesting proposals from all parties regarding the allocation of revenues from the electric utilities sales of Low Carbon… Continue Reading

Low Carbon Fuel Standard – Unconstitutional!

Posted in Cap and Trade, Climate Change, Federal
On December 29, 2011, the U.S. District Court for the Eastern District of California (Fresno) issued a series of orders ruling that California’s Low Carbon Fuel Standard (“LCFS”) is unconstitutional as it violates the Commerce Clause in the U.S. Constitution.  The LCFS regulations are a part of California’s attempts to reduce Greenhouse Gas Emissions to… Continue Reading

Cap-and-Trade: CARB Gets the Green Light to Resume Rulemaking Activities

Posted in Cap and Trade, Climate Change, Federal
On June 24, California’s First Appellate District cleared the way for the California Air Resources Board (“CARB”)  to proceed with cap-and-trade rulemaking activities while it appeals the San Francisco Superior Court’s ruling in Association of Irritated Residents v. CARB [Case No. CPF-09-509562].  In Friday’s order, the Appellate Court granted CARB’s petition for a writ of… Continue Reading

Cap-and-Trade: It’s Your Move, Association of Irritated Residents

Posted in Cap and Trade, Climate Change
Keep an eye on California’s First District Court of Appeal in the matter of Association of Irritated Residents v. California Air Resources Board next week.  The appellate court directed the Association of Irritated Residents to serve and file points and authorities on or before Monday, June 20 in opposition to CARB’s request to “stay” the San… Continue Reading

Cap-and-Trade CEQA Alternatives Analysis Released by California Air Resources Board

Posted in California, Cap and Trade, Climate Change
Today CARB released a supplement to its previous Environmental Review Document that considers the five new alternatives to cap-and-trade, to fortify the its environmental review under the California Environmental Quality Act (CEQA). As discussed in a previous DWT Alert, the San Francisco Superior Court found that CARB failed to adequately analyze alternatives to its Assembly… Continue Reading