California Passes Cap & Trade Program: Look for Major Supply Chain Impacts



From California Environmental Protection Agency: “The formal Cap-and-Trade rulemaking began with the release of the Staff Report: Initial Statement of Reasons (ISOR). The ISOR and formal rulemaking materials are available on the cap-and-trade rulemaking web page. The Board Hearing on this item was held on December 16, 2010. At the hearing, the Board approved Resolution 10-42 directing several modifications to the regulation as written. As a result, on July 25, 2011, the first Notice of Public Availability of Modified Text and Availability of Additional Documents (First 15-Day Change Notice) was issued. The public comment period for the 1st 15-Day Change Notice ended August 11, 2011.

On September 12, 2011, staff proposed additional modifications to the regulatory text in the Second Notice of Public Availability of Modified Text and Additional Documents and Information (Second 15-Day Change Notice). These modifications addressed comments ARB staff received in the first 15-day Change Notice and are the result of additional staff analysis and stakeholder engagement. The public comment period for the 2nd 15-Day Change Notice ended September 27, 2011.

On October 20, 2011, the Board adopted the final cap-and-trade regulation. As part of finalizing the regulation, the Board considered the related environmental analysis (i.e. functional equivalent document) and written responses to environmental comments. The Board also approved the adaptive management plan. The final regulation must be filed with the California Office of Administrative Law (OAL) by October 28, 2011.

The final rulemaking package will include the Final Statement of Reasons (FSOR). In the FSOR, staff will respond to comments received on the record during the initial 45-day comment period, comments presented at the December 16, 2010 Board hearing both orally and in writing, comments received during the first 15-day Change Notice and the second 15-day Change Notice. The Administrative Procedure Act only requires that staff respond to changes that are noticed. Once final, those documents will be posted on the rulemaking web page.”

See the California Environmental Protection Agency: Air Resources Board website for more details and resources.