On June 13, 2011, the California Air Resources Board (CARB)
released a Supplement to its Functional Equivalent
Document (FED) (the environmental review document for its
cap-and-trade program). CARB was ordered by the San Francisco
Superior Court to remedy deficiencies in the initial FED's
analysis of alternatives to the cap-and-trade program proposed in
the AB 32 Scoping Plan (for more information on this cap-and-trade
program, please see our previous blog post).
This ruling was initially a tentative one, but was finalized on
May 20, 2011. For more information on the Court's
determination, please see our earlier blog post
The Supplement provides a more extensive analysis of the five
alternatives to the Scoping Plan. These include: (1) a no project
alternative, (2) an alternative based on cap-and-trade, (3) an
alternative based on source-specific regulatory requirements, (4)
an alternative based on a carbon fee or tax, and (5) an alternative
program based on a variation of proposed strategies.
The Supplement will be open for 45 days (until July 28, 2011)
for public comment. The Supplement (along with the FED for the AB
32 Scoping Plan) will be considered by the board of CARB for
approval on August 24, 2011 in Sacramento, California. Should the
revised analysis prove sufficient from the court's point of
view, it is likely that California's cap and trade program will
begin as scheduled in 2012. Although implementation of convergent
cap and trade programs in British Columbia, Ontario, Quebec and
Manitoba may be delayed until after 2012, as members of the Western
Climate Initiative, these provincial cap and trade programs will
link into the California program to form a larger regional carbon
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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