Linkage

This page last reviewed  March 22, 2013

The cap-and-trade regulation includes general requirements for linking to other trading programs.  To enable the mutual acceptance of compliance instruments from another emissions trading program, California must initiate a public process to amend the cap-and-trade regulation.  Linkage allows for the use of compliance instruments from an external greenhouse gas emission trading system to meet compliance obligations pursuant to the California Cap-and-Trade Regulation, and the reciprocal approval of compliance instruments issued by California to meet compliance obligations in the external trading program.  Any staff recommended amendments for Board consideration will go through a full rulemaking process as required under the Administrative Procedure Act.  

On May 9, 2012, ARB staff noticed amendments to the Board to effect linkage between the California and Québec Cap-and-Trade Programs.  Subsequent to the notice, Senate Bill 1018 was enacted requiring state agencies to notify the Governor that the agency intends to take such action to link with another greenhouse gas emissions trading program, and the Governor must make specified findings prior to the agency taking action to approve the linkage.

On February 22, 2013, ARB’s Executive Officer sent a letter to Governor Edmund G. Brown Jr. (Governor).  The letter requests that the Governor consider and make four findings that are necessary before the ARB can adopt a regulation that would link the greenhouse gas emissions trading programs developed in parallel by California and the Province of Québec.  Links to the letter and attachments are provided below.

ARB Request to Governor Brown Pursuant to SB 1018:

• Letter to Governor

• General Summary of Comments and Preliminary Agency Responses
• Discussion Proposal Concerning the Harmonization and Integration of State and Provincial Cap-and-Trade Programs for Reducing Greenhouse Gas Emissions
• Discussions of Findings Required by Government Code Section 12894

Links to Rulemaking Documents Related to the Staff Proposal to Link California's Cap-and-Trade Program to Québec's Cap-and-Trade Program are Provided Below

HEARING ACTION AND SUPPLEMENTAL 15-DAY NOTICES

• Public Comments

Posted March 22, 2013

• Third Notice of Public Availability of Modified Text Linkage (PDF- 125K)   Deadline to Submit Comments: April 6

• Attachement 1: Proposed Modified Regulation Order (PDF- 119)

Posted January 8, 2013

• Second Notice of Public Availability of Modified Text Linkage (PDF- 30K)

Deadline to Submit Public Comment: January 23, 2013

• Attachment 1: Proposed Modified Regulation Order (PDF- 53K)

Additional Documents Added to the Record:

• Québec’s “Cap-and-trade system for greenhouse gas emission allowances — Amendment” dated December 12, 2012 (PDF- 586K)
• Québec’s “Mandatory reporting of certain emissions of contaminants into the atmosphere — Amendment” dated September 5, 2012 (PDF- 169K)
• Québec’s “Determination of annual caps on greenhouse gas emission units relating to the cap-and-trade system for greenhouse gas emission allowances for the 2013-2020 period” (PDF- 50K)
• Regulation Respecting a Cap-and-Trade System for Greenhouse Gas Emission Allowances – Overview prepared by Québec’s Ministry of Sustainable Development, Environment, Wildlife and Parks, dated December 21, 2012 (PDF- 73K)
• Discussion of Findings Required by Government Code section 12894 (PDF- 80K)

Posted July 20, 2012

• Resolution 12-28 Linkage (PDF - 66K)

PUBLIC HEARING NOTICE AND RELATED MATERIAL

Posted June 11, 2012

• Cap-and-trade system for greenhouse gas emission allowances - Amendments (PDF - 276K)
• Mandatory reporting of certain emissions of contaminants into the atmosphere- Amendments (PDF - 155K)

Posted May 9, 2012

Notice of Public Hearing Linkage (PDF - 43K)

Staff Report: Initial Statement of Reasons (ISOR) (PDF - 1193K)

• Appendix A.2:  Proposed Regulation Order for Linkage (PDF - 336K)
• Appendix B:  Western Climate Initiative Development and Stakeholder Process (PDF -196K)

                            - Appendix B - Support Documents  (PDF - 129,604K)

• Appendix C:  Environmental Analysis Supporting Documents  (PDF - 361K)
• Appendix D:  Public Process for Cap-and-Trade Program Amendments (PDF - 3280K)