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The Air Resources Board (ARB or Board) staff will hold a
technical workshop at the time noted below to discuss emissions
leakage research and a proposal to monitor for emissions leakage
related to the Cap-and-Trade Program, as directed by the Board at
the October 2011 Board Meeting, and reflected in Resolution
11-32. 

DATE:          Monday, July 30, 2012

TIME:          10 am to 1 pm 

LOCATION:      Cal/EPA Headquarters Building
               Sierra Hearing Room
               1001 I Street
               Sacramento, California 95814 

WEBCAST INFORMATION:

This meeting will be webcast for those unable to attend in
person.  The webcast can be accessed on the day of the workshop
at http://www.calepa.ca.gov/broadcast/.  Information on
submitting questions or comments will be provided during the
webcast for remote participants.  Staff’s presentation and all
associated documents will be posted in advance of the workshop on
ARB’s website at:
http://www.arb.ca.gov/cc/capandtrade/meetings/meetings.htm 

BACKGROUND:
The California Cap on Greenhouse Gas Emissions and Market-Based
Compliance Mechanisms Regulation went into effect on January 1,
2012. 

The California Global Warming Solutions Act of 2006 (AB 32),
which authorized the use of a market-based compliance mechanism
such as a cap-and-trade program, required ARB to minimize
emissions leakage to the extent feasible.  AB 32 further defines
emissions leakage as a reduction in emissions of greenhouse gases
within the State that is offset by an increase in emissions of
greenhouse gases outside the State.  Leakage is possible when a
business in California incurs regulatory costs not incurred by
out-of-State businesses.

In Resolution 11-32, the Board directed ARB staff to continue to
review information concerning the emissions intensity, trade
exposure, and in-State competition of industries in California,
and to recommend to the Board changes to the leakage risk
determinations and allowance allocation approach, if needed,
prior to the allocation of allowances for the second compliance
period. 

At this workshop, staff and researchers will discuss planned
ARB-sponsored research efforts to establish baselines from which
to measure leakage, along with models upon which to simulate
potential leakage.  One study will examine how changes in
relative energy prices have historically impacted plant output,
emissions, and employment.  A second study will examine and
document recent trends in trade flows in emissions-intensive,
trade-exposed industries and estimate how trade flows have
historically responded to changes in relative (domestic versus
foreign) operating costs.

Staff will also discuss a proposal to collect facility-level
economic data from covered industrial entities necessary for the
timely measurement and monitoring of potential emissions leakage
related to the Cap-and-Trade Program. 

Staff will further discuss a possible proposal for increases in
the percentages of the assistance factors generated from leakage
risk calculations. Any potential changes to assistance factors
will require regulatory amendments, and will therefore not be in
place until 2013 at the earliest. 

SPECIAL ACCOMMODATION REQUEST
Special accommodation or language needs can be provided for any
of the following:
• An interpreter to be available at the hearing;
• Documents made available in an alternate format or another
language;
• A disability-related reasonable accommodation.

To request these special accommodations or language needs, please
contact the Stationary Source Division at (916) 322-2037 as soon
as possible, but no later than 10 business days before the
scheduled meeting.  TTY/TDD/Speech to Speech users may dial 711
for the California Relay Service.

Comodidad especial o necesidad de otro idioma puede ser proveído
para alguna de las siguientes:
• Un intérprete que esté disponible en la audiencia. 
• Documentos disponibles en un formato alterno u otro idioma. 
• Una acomodación razonable relacionados con una incapacidad. 
 
Para solicitar estas comodidades especiales o necesidades de otro
idioma, por favor llame a la oficina (916) 322-2037 lo más pronto
posible, pero no menos de 10 días de trabajo antes del día
programado para la audiencia del Consejo. TTY/TDD/Personas que
necesiten este servicio pueden marcar el 711 para el Servicio de
Retransmisión de Mensajes de California.

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