California Adopts Cap-and-Trade

Regulators in California have adopted rules for a cap-and-trade program that will place limits on greenhouse-gas emissions starting in 2013, The Wall Street Journal reports.

As a result, the 600 industrial facilities in California that are responsible for 85% of the state’s green-house gas emissions will have to cut their emissions, obtain allowances from the state or buy them from companies with excess allowances. They can also purchase carbon offsets.

Under the cap and trade rules, California will give away 90% of the allowances, the Journal says. The remainder will be sold in auctions.

The Journal says California’s Global Warming Solutions Act mandates the state to cut emissions to 1990 levels by 2020.
According to the Journal, environmentalists are happy about the rules, while utilities and refiners are worried about costs. Some regulated companies also complained they would be at a disadvantage to other states and countries.

To read the full article by The Wall Street Journal cited in this story, click here

Tags: Policy

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