greenhouse gases: market-based compliance mechanism.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act authorizes the state board to include in its regulation of greenhouse gases the use of market-based compliance mechanisms. This bill would require the state board, at least once every 3 years, to conduct a review, as provided, of the market-based compliance mechanisms to, among other things, evaluate and address concerns related to allowance overallocation and offset credit eligibility. The bill would require the state board, in conducting the review, to consult with the Independent Emissions Market Advisory Committee and the environmental justice advisory committee. The bill would require the first review to begin by a certain date. The bill would require the state board, in consultation with the Independent Emissions Market Advisory Committee, to develop and publish allowance banking metrics, as defined, concurrently with the first review and would require the review to be based on observed and expected outcomes resulting from the application of allowance banking metrics.