California Lawmakers Push for Stronger Greenhouse Gas Cap-and-Trade Program with AB 9
California's new bill, AB 9, requires CARB to strengthen its greenhouse gas cap-and-trade program and make regulatory changes
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California is taking another step forward in its efforts to address climate change with a bill that could tighten its greenhouse gas cap-and-trade program. The legislation would push state air regulators to strengthen the program, helping the state meet its 2030 and 2045 climate goals. Assemblyman Al Muratsuchi (D-Torrance) introduced the bill, AB 9, which was approved by the Assembly Natural Resources Committee with an 8-3 vote.
The bill requires the California Air Resources Board (CARB) to "initiate a regulatory process to evaluate potential updates to the cap-and-trade regulation, and requires regulatory changes to take effect no later than" Jan. 1, 2025. The focus of the evaluation will be on ensuring that the supply of emission allowances and carbon offsets are consistent with a linear trajectory towards the statewide greenhouse gas goal. The evaluation will also consider recommendations for program improvement from the Independent Emissions Market Advisory Committee (IEMAC), the environmental justice advisory committee (EJAC), "and other recommendations as considered relevant by" CARB.
AB 9 responds to multiple reports by IEMAC, the California Legislative Analyst's Office (LAO), and others, which recommended that CARB reduce the total number of allowances allocated to regulated industries under the program. This would force greater greenhouse gas reductions in the coming years, helping the state meet its 2030 goal of lowering emissions by 48% below 1990 levels and its 2045 carbon neutrality target. Katelyn Roedner Sutter, the Environmental Defense Fund's California director, testified in support of AB 9, saying that while CARB has already committed to considering cap-and-trade changes by 2025, "I'm sure we've all experienced that for many agencies, these sort of timelines can easily slip."
AB 9 would also require CARB to conduct additional evaluations of the program beginning in 2028 and subsequently on a triennial basis aligned with cap-and-trade program compliance periods. These reviews would be done in consultation with the IEMAC and the EJAC. The bill would also require CARB to present its evaluation results and any proposed regulatory amendments to the cap-and-trade program to the Joint Committee on Climate Change Policies (JLCCCP) and "appropriate policy and fiscal committees of the Legislature." Finally, AB 9 would authorize CARB to revise the regulations implementing the program.
In short, AB 9 is designed to ensure that California's cap-and-trade program is functioning as it should be. The bill responds to calls for greater reductions in greenhouse gas emissions, and its passage would help the state achieve its climate goals. While there is still work to be done, AB 9 is an important step forward for California's efforts to address climate change.
