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Comment 56 for Proposed Amendments to the Cap-and-Trade Program (cap-trade-draft-ws) - 1st Workshop.


First Name: Bill
Last Name: Buchan
Email Address: buchan@mktpotential.com
Affiliation: Cardinal Cogen, Inc.

Subject: Sunset on Legacy Allowance Provision
Comment:
Legacy contract allowances are proposed for 2013 and 2014, but not
beyond even though many legacy contract extend well beyond 2014.  
While we understand that ARB would like to continue to encourage
negotiating as a means of settling legacy contracts, the
negotiating position  for involved parties will not change (with
possible exception of those involving universities who are covered
entities).   For Cardinal Cogen, our contract host is not a covered
entity, so the negotiating position will be no different now than
it will be in 2014.   Expecting a renegotiation between now and
then is not realistic, as our contract host has no reason to accept
additional fees for greenhouse gases.   We ask that the ARB
reconsider  the limitation on legacy allowances with the
realization that ARB will be supporting CHP as enumerated in state
policy knowing we had no way of foreseeing greenhouse gas costs at
the time the contract was entered into.  

Attachment: www.arb.ca.gov/lists/com-attach/58-cap-trade-draft-ws-VjdTJ1U2Ul4BNQEx.docx

Original File Name: ARB 2013 cap and trade comment - Legacy allowance sunset.docx

Date and Time Comment Was Submitted: 2013-08-02 16:49:53



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