READY, OFFSET, GO: A LOOK AT THE FINAL CAP-AND-TRADE REGULATION’S OFFSET PROGRAM
The time has finally come… California’s cap-and-trade regulation finally went into effect in January of 2012 (not without its litigation drama along the way – see here, here, here, here, and here for the full saga). The crowning jewel of California’s AB 32, the regulation establishes an overall cap on greenhouse gas (GHG) emissions for all covered sources. There are two “compliance instruments” contemplated as a part of the cap-and-trade regulation. In other words, there are two different items that a covered facility may obtain to allow them to emit GHGs: (i) allowances, which are a particular facility’s tradable portion of the total GHGs permitted to be emitted under the overall cap, and (ii) offsets, which are projects that will reduce emissions outside of the cap. This article will focus on the regulation’s offset program which is run by the California Air Resources Board (ARB).













