This page last reviewed January 30, 2017
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.
Linkage with Ontario Cap-and-Trade Program
Linkage with Quebec Cap-and-Trade System
Linkage Readiness ReportOn November 1, 2013, Chair Nichols sent a letter to Governor Edmund G. Brown Jr. (Governor) with a linkage readiness report. The report is in response to the Governor’s request in his letter provided to ARB on April 8, 2013. Links to the transmittal letter and report are provided below.
On October 1, 2013, ARB and the Government of Québec announced the completion of an agreement that defines the process for working collaboratively and jointly to harmonize and integrate the California and Québec cap-and-trade programs. This agreement fulfills the direction in Board Resolution 13-7 to document the coordination process in a written agreement.
- California-Quebec Agreement to Integrate and Harmonize their Cap-and-Trade Programs (English) (French)
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.
Governor Brown's Response to ARB Pursuant to SB 1018:
ARB Request to Governor Brown Pursuant to SB 1018:
- 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
ADOPTED REGULATION AND MATERIALS SUBMITTED TO OALThe Final Rulemaking Package for Linkage was filed with OAL on May 10, 2013. OAL has until June 24, 2013 to make a determination.
- Final Regulation Order (PDF - 40 K)
- Final Statement of Reasons (PDF - 665 K)
- Updated Informative Digest (PDF - 21 K)
- Notice of Decision (PDF - 72 K)
HEARING ACTION AND SUPPLEMENTAL 15-DAY NOTICES
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)
July 20, 2012
- Resolution 12-28 Linkage (PDF - 66K)
PUBLIC HEARING NOTICE AND RELATED MATERIAL
Posted June 11, 2012Notice of Public Availability of Additional Documents and Information (PDF - 21K)
- 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 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)