HomeMy WebLinkAbout15,Calif Cap-and-Trade Program
Action Item # 15 September 5, 2012 ProgramTrade -and-California Cap
California Cap 2 1)-to-compliance (4-Stiff penalties for non–Significant cost containment mechanisms–2020, compliance begins in 2013)-Nine year program (2012–Key Components•wide program-First
economy–3,000 pages, 262 pages of regulation language–th 20Implementing regulations adopted by CARB last October •Act of 2006, AB32the California Global Warming SolutionThe State of
California adopted •Background / History Trade Program-and-
New Information Other SuppliersNatural GasSuppliers of of ElectricityDeliverers st 1OperatorsFacility Petroleum GasLiquefied Distillate FuelsBlending (RBOB)Oxygenate Blending for Reformulated
usersdirectly to end delivering gas Interstate Pipeline Gas Utility or California electricity into Importers of Californiafacilities in generation Operators of Generation-SelfManufacturingPulp
& Paper RefiningPetroleum ProductionIron/Steel ProductionCement/Glass Trade Program-and-California Cap 3 Trade Program?-and-Who is Included in the Cap•
New Information allowancesprimarily interested in purchasing and retiring Organizations with no compliance obligation that are Voluntarily Associated Entity•but wishes to participate
anywaytrade program -and-threshold for inclusion in the capOrganizations that do not meet the GHG emission in” Covered Entity-“Opt•Trade Program-and-California Cap 4 Trade Program?-and-Who
Else is Part of the Cap•
New Information equivalentmetric ton of carbon dioxide authorization to emit up to one Allowances: Tradable •Trade Program-and-California Cap 5 price signalIntended to mitigate burden
on consumer without impacting carbon –Free distribution of allowances to industrial and utility sector•
New Information Surrender Allowances to Surrender Allowances to ops Only)-(POU/CoAccount of JPACompliance Place in ops Only)-(POU/CoAccount of JPACompliance Place in purposes at local
levelFunds used for AB32 freely distributedReceive proceeds from cover obligationPurchase allowances to purposes at local levelFunds used for AB32 freely distributedReceive proceeds
from cover obligationPurchase allowances to Meet ObligationSurrender Allowances to Meet ObligationSurrender Allowances to AccountCompliance Place in own AccountCompliance Place in own
AccountUse Holding Place in Limited AccountUse Holding Place in Limited Trade Program-and-California Cap 6 Options for Use of Free AllowancesTrade-and-Mechanics of Cap•
New Information Price floors and purchase limits will apply•Bids will be sealed•Auctions will be held quarterly•What Is Known Today•will dominate first half of 2012Development of market
structure •Trade Program-and-California Cap 7 The Auction–
8 Section 95892(d)(3) of the Regulations persons other than such ratepayers.goals of AB32, and may not be used for the benefit of entities or ratepayers of each electrical distribution
utility, consistent with the distribution utility shall be used exclusively for the benefit of retail Auction proceeds and allowance value obtained by the electric Section 95892(d)(3)
of the Regulations persons other than such ratepayers.goals of AB32, and may not be used for the benefit of entities or ratepayers of each electrical distribution utility, consistent
with the distribution utility shall be used exclusively for the benefit of retail Auction proceeds and allowance value obtained by the electric value of your free allowances?What can
electric distribution utilities do with the Trade Program--California Cap
New Information Trade Program-and-California Cap 9
Fiscal Impact Trade Program-and-10 allowances will be come before BoardUses of market proceeds associated with the sale of •The District is expected to be a net seller of allowances•The
fiscal impact to the District is unknown•
Recommendation Trade Program-and-California Cap 11 ProgramTrade -and-District participation in the California CapXX initiating a program for the -Approve Resolution 2012•