Amendments to the Regulation for the California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms

The suite of Proposed Amendments works collectively to ensure the Program provides the long-term price signal, appropriate incentives, and regulatory certainty to support the economy-wide deep decarbonization needed through mid-century. Most significantly, staff propose to revise allowance budgets through 2045 to support achieving the legislative GHG targets for 2030 and 2045. These proposed changes to allowance budgets would increase the stringency of the Program, intensifying incentives for covered entities to invest in GHG emissions reduction activities in the near-and long-term. The package of Proposed Amendments is informed by AB 1207, AB 1279, the 2022 Scoping Plan Update, the existing 2030 GHG emissions reduction target enacted through SB 32, evolving State policy, and implementation experience. Please see attached Draft EIA for more details.