California’s Carbon Concern: Leakage from the Imbalance Market

As interest in the Western Energy Imbalance Market  (“EIM”) grows, regulators  at the California Air Resources Board (“CARB”) are facing concerns, once again, about carbon leakage from the state’s mandatory cap and trade program under AB 32. In the context of carbon markets, leakage describes the phenomenon in which a local (in this case, California) …

EPA Issues Draft Rules for Design Details for Clean Energy Incentive Plan; Tribal Projects are Eligible

On June 30, the EPA issued its proposed rules for the design details of the Clean Energy Incentive Plan (CEIP), a component of the (now stayed) Clean Power Plan (CPP). Comments are due by August 29, 2016. Further information about the CEIP can be found on the EPA Clean Power Plan website and the National …

New Mexico Task Force Recommends “Revising” Cap-and-Trade Rule

The Small Business-Friendly Task Force, created by Governor Susana Martinez shortly after taking office in New Mexico, issued a 13 page report late on Wednesday.  The Governor plans to work with her administration and legislators to implement the recommendations in order to make New Mexico more “business friendly.”  In the report, the Task Force recommends that …

Court Enjoins California’s Cap-and-Trade Program

California’s ground breaking CO2 cap-and-trade program may be in jeopardy, after a Superior Court in San Francisco County issued an injunction against the California Air Resources Board (CARB) prohibiting the agency from any further rule making under its “Climate Change Scoping Plan”.  The challenge to CARB’s cap-and-trade proposal was brought by environmental justice advocates, who believe that …

California Adopts Cap-and-Trade Plan

On the heels of New Mexico’s approval of cap-and-trade earlier this month, regulators in the Golden State decided late yesterday to adopt a cap-and-trade plan, creating the world’s second-largest carbon market after Europe’s.  The California Air Resources Board (CARB) voted 9-1 to limit greenhouse gas emissions from large emitters, the keystone of the state’s goal to reduce …