Cap and Trade Bill (AB 398)

As you may have heard by now, the Governor has announced a Cap and Trade bill (AB 398) along with a companion bill on Air Quality that would set up a new air quality monitoring requirement in disadvantaged communities and a "community emission reduction program" (AB 617).

CTA has been actively engaged w/ our coalition partners in the Goods Movement industry on the development of this package. While the situation is still fluid, there is an expectation that both oil and the large business interests representing parties directly regulated by Cap and Trade will support a bill to extend the Cap and Trade program.

The companion air quality bill is meant to bring on the progressive Democrats who have opposed a Cap and Trade extension due to a perceived lack of local/community air quality benefit. It is our understanding that the environmental community has pushed for indirect source rules and hard emission caps in this companion bill but have been told that is a non-starter.

Requires creation of new advanced air quality monitoring network in disadvantaged communities and near sensitive receptors (schools, hospitals, day care centers) and fence-line monitoring of major stationary sources.
Requires CARB to identify "locations" (undefined) around the State for preparation of community emission reduction programs. Air districts encompassing "location" is responsible for putting together program which shall include emission reduction targets, specific reduction measures and an enforcement plan. Emissions must be reduced in community based on the monitoring data from new air quality monitoring network. Also requires CARB to provide grants to community groups for technical assistance and participation.