Guest Blogger Dallas Burtraw: Three Revisions Not to Overlook in California’s New Cap-and-Trade Proposal, SB 775
View on LegalPlanet website"The California cap-and trade-program is already the most rigorous and best-designed allowance market in the world. Its purpose is to reduce greenhouse gas emissions that contribute to climate change. But now the program requires adjustments for political and legal reasons. These adjustments will be a vitally important legislative decision – for the state and the world. An important new proposal on the stage is SB 775 (Senators Wieckowski and de Leon). This bill would preserve the most basic architecture of the program by maintaining an economy wide carbon market and various complementary policies, but it would make several important changes. Inevitably, one issue that will attract major attention will be the use of revenue raised in the auction of tradable emissions allowances in the carbon market. However, three other fundamental revisions that may get lost in the headlines are nonetheless crucial to the success of the market: banking, offsets, and the border adjustment."
