View source for Global Warming Solutions Act of 2006

{{Short description|California state law}}
{{Use American English|date = March 2019}}
{{Use mdy dates|date = March 2019}}
{{Infobox U.S. State legislation
| State = California
| Full_name= Global Warming Solutions Act of 2006
| Status= amended
| Introduced= April 3, 2006
| Assembly_Voted= August 31, 2006
| Senate_Voted= August 30, 2006
| Signed = September 27, 2006
| Sponsors = [[Fran Pavley]], [[Fabian Nunez]]
| Governor = [[Arnold Schwarzenegger]]
| Code = [[California Health and Safety Code]]
| Section = 38500, 38501, 28510, 38530, etc.
| Resolution = AB32 (2005-2006 Session)
| Associated_bills = [http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB398 AB 398] (2017-2018 session; extends cap-and-trade until 2030), [http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB32 SB 32] (2015-2016 session; adds GHG reduction target of 40% below 1990 levels by 2030)
| URL={{url|http://www.arb.ca.gov/cc/docs/ab32text.pdf}}
}}
The '''Global Warming Solutions Act of 2006''', or Assembly Bill (AB) 32, is a [[California]] state law that fights [[global warming]] by establishing a comprehensive program to reduce [[greenhouse gas emissions]] from all sources throughout the state. AB32 was co-authored by Assemblymember [[Fran Pavley]] (D-Agoura Hills) and Speaker of the California Assembly [[Fabian Nunez]] (D-Los Angeles) and signed into law by Governor [[Arnold Schwarzenegger]] on September 27, 2006.

On June 1, 2005, Governor Schwarzenegger signed an executive order known as [[Executive Order S-3-05]],<ref>{{cite web|title=California Climate Change Executive Orders|url=http://www.climatechange.ca.gov/state/executive_orders.html|url-status=dead|archive-url=https://web.archive.org/web/20111219221425/http://www.climatechange.ca.gov/state/executive_orders.html|archive-date=19 December 2011|access-date=17 April 2016|website=California Climate Change}}</ref><ref>{{Cite web|title=EXECUTIVE ORDER S-3-05|url=http://gov.ca.gov/news.php?id=1861|url-status=dead|archive-url=https://web.archive.org/web/20110602181729/http://gov.ca.gov/news.php?id=1861|archive-date=2 June 2011|website=Office of Governor}}</ref> which established greenhouse gas emissions targets for the state. The executive order required California to reduce greenhouse gas emissions to 2000 levels by 2010, to 1990 levels by 2020, and 80% below 1990 levels by 2050. However, to implement this measure, the [[California Air Resources Board]] (CARB) needed authority from the legislature. The [[California State Legislature]] passed the Global Warming Solutions Act to address this issue and gave the CARB authority to implement the program.

AB 32 requires the California Air Resources Board (CARB or ARB) to create regulations and market mechanisms to reduce the state's greenhouse gas emissions to 1990 levels by 2020, a 30% statewide reduction,<ref>{{Cite web|url=https://www.arb.ca.gov/cc/cc.htm|title=Climate Change|date=September 5, 2018|website=California Air Resources Board|access-date=2019-04-24}}</ref> with mandatory caps beginning in 2012 for significant emissions sources. The bill also allows the Governor to suspend the emissions caps for up to a year in case of emergency or significant economic harm.

[[State of California|California]] leads the U.S in energy efficiency standards and [[environmental protection]], but it is also the world's 12th carbon largest emitter.<ref>{{cite web|date=27 September 2006|title=Gov. Schwarzenegger Signs Landmark Legislation to Reduce Greenhouse Gas Emissions|url=http://gov.ca.gov/index.php?/press-release/4111/|url-status=dead|archive-url=https://web.archive.org/web/20060928031617/http://gov.ca.gov/index.php?%2Fpress-release%2F4111%2F|archive-date=2006-09-28|work=Office of the Governor}}</ref> [[Greenhouse gas]] emissions are defined in the bill to include all the following: [[carbon dioxide]], [[methane]], [[nitrous oxide]], [[sulfur hexafluoride]], [[hydrofluorocarbons]] and [[perfluorocarbons]].<ref>{{Cite web|url=http://www.leginfo.ca.gov/pub/05-06/bill/asm/ab_0001-0050/ab_32_bill_20060927_chaptered.pdf|title=Assembly Bill No. 32. CHAPTER 488. An act to add Division 25.5 (commencing with Section 38500) to theHealth and Safety Code, relating to air pollution.|date=September 27, 2006|website=California State Assembly}}</ref> These are the same greenhouse gases listed in Annex A of the [[Kyoto Protocol]].<ref>{{Cite report|url=https://unfccc.int/sites/default/files/resource/docs/cop3/l07a01.pdf|title=Kyoto Protocol|date=10 December 1997|publisher=United Nations Framework Convention on Climate Change|page=22|access-date=29 July 2021}}</ref>

==Requirements==
AB 32 includes several specific requirements of the California Air Resources Board:
# Prepare and approve a scoping plan to achieve the maximum feasible and cost-effective reductions in greenhouse gas sources or categories by 2020. The scoping plan, approved by the ARB Board December 12, 2008, provides the outline for actions to reduce greenhouse gases in California. The approved scoping plan indicates how these emission reductions will be achieved from significant greenhouse gas sources via regulations, market mechanisms and other actions.
# Identify the statewide level of greenhouse gas emissions in 1990 to serve as the emissions limit to be achieved by 2020. In December 2007, the Board approved the 2020 emission limit of 427 million metric tons of carbon dioxide equivalent of greenhouse gases, however this limit was later revised to 431 million metric tons using updated methods that had been outlined in the [[IPCC Fourth Assessment Report]].<ref>{{Cite web|title=GHG 1990 Emissions Level & 2020 Limit|url=https://ww2.arb.ca.gov/ghg-2020-limit|access-date=2021-07-29|website=California Air Resources Board}}</ref>
# Adopt a regulation requiring the mandatory reporting of greenhouse gas emissions. In December 2007, the Board adopted a regulation requiring the largest industrial sources to report and verify their greenhouse gas emissions. The reporting regulation serves as a solid foundation to determine greenhouse gas emissions and track future changes in emission levels. In 2011, the Board adopted the cap-and-trade regulation. The cap-and-trade program covers major sources of GHG emissions in the State such as refineries, power plants, industrial facilities, and transportation fuels. The cap-and-trade program includes an enforceable emissions cap that will decline over time. The State will distribute allowances, which are trad-able permits, equal to the emissions allowed under the cap. Sources under the cap will need to surrender allowances and offsets equal to their emissions at the end of each compliance period.
# Identify and adopt regulations for discrete early actions that could be enforceable on or before January 1, 2010. The Board identified nine discrete early action measures including regulations affecting landfills, motor vehicle fuels, refrigerants in cars, tire pressure, port operations and other sources in 2007 that included ship electrification at ports and reduction of high GWP gases in consumer products.
# Ensure early voluntary reductions receive appropriate credit in the implementation of AB 32
# Convene an Environmental Justice Advisory Committee (EJAC) to advise the Board in developing the Scoping Plan and any other pertinent matter in implementing AB 32. The EJAC has met 12 times since early 2007, providing comments on the proposed early action measures and the development of the scoping plan, and submitted its comments and recommendations on the scoping plan in October 2008. ARB will continue to work with the EJAC as AB 32 is implemented.
# Appoint an Economic and Technology Advancement Advisory Committee (ETAAC) to provide recommendations for technologies, research and greenhouse gas emission reduction measures.<ref name="autogenerated1">{{cite web|author=|date=28 September 2018|title=Assembly Bill 32 - California Global Warming Solutions Act|url=http://www.arb.ca.gov/cc/ab32/ab32.htm|work=California Air Resources Board}}</ref> After a year-long public process, the ETAAC submitted a report of their recommendations to the Board in February 2008. The ETAAC also reviewed and provided comments on the scoping plan.{{Citation needed|date=July 2021}}

==Timeline==
AB 32 stipulates the following timeline:<ref name=autogenerated1 />
{| class="wikitable"
|-
| By Jan 1, 2009 || ARB adopts plan indicating how emission reductions will be achieved from significant sources of GHGs via regulations, market mechanisms and other actions
|-
| During 2009 || ARB staff drafts rule language to implement its plan and holds a series of public workshop on each measure (including market mechanisms)
|-
| By Jan 1, 2010 || Early action measures take effect
|-
| During 2010 || ARB conducts series of rulemakings, after workshops and public hearings, to adopt GHG regulations including rules governing market mechanisms
|-
| By Jan 1, 2011 || ARB completes major rulemakings for reducing GHGs including market mechanisms. ARB may revise the rules and adopt new ones after 1/1/2011 in furtherance of the 2020 cap
|-
| By Jan 1, 2012 || GHG rules and market mechanisms adopted by ARB take effect and are legally enforceable
|-
| 2013/2014 Schedule || ARB plans to update the AB 32 Scoping Plan. The AB 32 Scoping Plan update will identify specific actions needed to reach the 2020 goal as well as lay the foundation to reach post- 2020 goals.  
|-
| December 31, 2020 || Deadline for achieving 2020 GHG emissions cap.
|}
In late-January 2014, ARB plans to release the draft proposed Scoping Plan Update and Environmental Assessment. In February 2014, ARB will have a Board meeting discussion that will include additional opportunities for stakeholder feedback and public comment. In Spring 2014, ARB will hold a Board Hearing to consider the Final Scoping Plan Update and Environmental Assessment.
<ref name="arb.ca.gov">{{cite web|url=http://www.arb.ca.gov/cc/scopingplan/scopingplan.htm|title=Scoping Plan - California Air Resources Board|author=California Air Resources Board|work=ca.gov}}</ref> {{Update inline|date=July 2021|reason=written in future tense but 2014 has passed}}

As of August 2016, AB 32 continues to be built upon.<ref>{{cite web|last1=Plumer|first1=Brad|date=September 9, 2016|title=California is about to find out what a truly radical climate policy looks like|url=https://www.vox.com/2016/8/29/12650488/california-climate-law-sb-32|access-date=August 30, 2016|website=Vox|publisher=[[Vox (website)|Vox]]}}</ref> On September 9, [[Governor of California|Governor]] [[Jerry Brown]] strengthened the commitment to AB 32 by signing [[California Senate Bill 32|SB 32]] by Sen. Fran Pavley (D-Agoura Hills) and AB 197 by Assembly member Eduardo Garcia (D-Coachella). This legally enshrined the goal outlined by [[Executive Order B-30-15]], to reduce the state's greenhouse gas emissions 40% below 1990 levels by 2030.<ref>{{cite news|author=<!--Staff writer(s); no by-line.-->|date=September 14, 2016|title=Political Watch 9/15/16|volume=17|website=Santa Maria Sun|publisher=Santa Maria Sun|issue=15|url=http://www.santamariasun.com/news/15131/political-watch-91516/|access-date=September 15, 2016}}</ref><ref>{{cite web|author=O'Shea|first=Helen|last2=Cavanagh|first2=Ralph|date=September 14, 2016|title=Conservation, Clean Energy and Climate Leadership|url=https://www.nrdc.org/experts/helen-oshea/conservation-clean-energy-and-climate-leadership|access-date=September 15, 2016|website=NRDC - Expert Blog|publisher=[[Natural Resources Defense Council]]}}</ref><ref>{{cite web |url=http://phys.org/news/2016-09-outlines-equity-california-low-carbon-economy.html |title=Report outlines how to make equity part of California's low-carbon economy |last1=Sullivan |first1=Jacqueline |date=September 14, 2016 |website=phys.org |publisher=[[Phys.org]] |access-date=September 15, 2016 }}</ref><ref>{{cite news|author=Editorial Board|date=September 25, 2016|title=The Post's View: The world is watching as California steps up — again — on climate change|newspaper=Washington Post|url=https://www.washingtonpost.com/opinions/the-world-is-watching-as-california-steps-up--again--on-climate-change/2016/09/25/f5cae480-76d0-11e6-8149-b8d05321db62_story.html|access-date=September 29, 2016|archive-url=https://web.archive.org/web/20160926163336/https://www.washingtonpost.com/opinions/the-world-is-watching-as-california-steps-up--again--on-climate-change/2016/09/25/f5cae480-76d0-11e6-8149-b8d05321db62_story.html|archive-date=26 September 2016}}</ref> On July 17, 2017, both houses of the [[California State Legislature]] pass AB 398 with a two-thirds majority vote, which authorizes the [[California Air Resources Board]] to operate a cap-and-trade system to achieve these reductions.<ref>{{cite news|last1=Megerian|first1=Chris|last2=Mason|first2=Melanie|title=California Legislature extends state's cap-and-trade program in rare bipartisan effort to address climate change|url=https://www.latimes.com/politics/la-pol-ca-california-climate-change-vote-republicans-20170717-story.html|access-date=21 July 2017|work=Los Angeles Times|date=17 July 2017}}</ref>

==Achievements==
{{update|date=January 2012}}
{| class="wikitable"
|-
| December 2007 || ARB approves a limit of 427 million metric tons of [[carbon dioxide equivalent]] (MMTCO2E) of greenhouse gas emissions in 2020
|-
| December 2007 || ARB adopts a regulation requiring the largest industrial sources to report and verify their greenhouse gas emissions.
|-
| February 2008 || ARB approves a policy statement encouraging voluntary early actions for emissions reductions and establishing a procedure for project proponents to submit quantification methods to be evaluated by ARB.
|-
| December 12, 2008 || Scoping plan approved and adopted by ARB, providing an outline of actions to reduce greenhouse gas emissions from significant sources in California via regulations, market mechanisms and other actions.
|-
| January 2009 || ARB adopts plan indicating how emission reductions will be achieved from significant sources of GHGs via regulations, market mechanisms and other actions.<ref name="autogenerated1"/>
|-
| During 2009 || ARB staff drafts rule language to implement its plan and holds a series of public workshop on each measure (including market mechanisms).<ref name="autogenerated1"/>
|-
| January 1, 2010 || Early Action measures take effect.<ref name="autogenerated1"/>
|-
| During 2010 || ARB conducts series of rulemakings, after workshops and public hearings, to adopt GHG regulations including rules governing market mechanisms.<ref name="autogenerated1"/>
|-
| January 1, 2011 || ARB completes major rulemakings for reducing Greenhouse Gases, including market mechanisms.<ref name="autogenerated1"/>
|-
| January 1, 2012 || Greenhouse Gas rules and market mechanisms adopted by ARB take effect and are legally enforceable.<ref name="autogenerated1"/>
|-
| October 2013 || CARB and the Quebec Ministry of Sustainable Development, Environment, Wildlife, and Parks officially linked their greenhouse gas cap-and-trade programs. As a result, greenhouse gas emission allowances from California and Quebec will be interchangeable for compliance purposes starting on January 1, 2014. California and Quebec's link represents the first multi-sector cap-and-trade program linkage in North America.
<ref>{{cite web|date=|title=California Cap and Trade|url=http://www.c2es.org/us-states-regions/key-legislation/california-cap-trade#Revenue|access-date=October 5, 2017|work=Center for Climate and Energy Solutions}}</ref>

|}

To date, ARB has identified nine discrete early action measures to reduce greenhouse gas emissions, including regulations affecting landfills, [[motor vehicle]] fuels, [[refrigerants]] in cars, tire pressure, port operations and other sources. Regulatory development for additional measures is ongoing.

The Environmental Justice Advisory Committee (EJAC) has met 12 times since early 2007 and submitted comments and recommendations on the scoping plan in October 2008. The Economic and Technology Advancement Advisory Committee (ETAAC) submitted a report of their recommendations to the Board in February 2008. The ETAAC also reviewed and provided comments on the scoping plan.

In June 2013, ARB held a kickoff public workshop in Sacramento to discuss the development of the Scoping Plan Update, public process, and overall schedule. 
In July 2013, subsequent regional workshops were held in Diamond Bar; Fresno; and the Bay Area, which provided forums to discuss region-specific issues, concerns, and priorities.<ref name="arb.ca.gov"/>

==Strategies==
# Cap-and-Trade Program: Firm limit on total greenhouse gas emissions. Covers 85% of all emissions statewide; includes participation in the [[Western Climate Initiative]]
# Electricity and Energy: Improved appliance efficiency standards and other energy efficiency measures; goal is for 33% of energy to come from renewable sources by 2020;
# High [[Global warming|Global Warming]] Potential Gases: reduce emissions and use of refrigerants and certain other gases that have much higher impact, per molecule than carbon dioxide
# Agriculture: more efficient agricultural equipment, fuel use and water use
# Transportation: adherence to "Pavley Standards" to achieve reductions in greenhouse gas emissions from motor vehicles
# Industry: audit and regulate emissions from 800 largest industrial sources statewide, including the cement industry
# Forestry: preserve forest sequestration and other voluntary programs
# Waste and Recycling: reduce [[methane emissions]] from landfills; reduce waste and increase recycling/reuse<ref name=":0" />

==AB 32 Scoping Plan==
Assembly Bill 32 (AB 32) required the California Air Resources Board (ARB or Board) to develop a Scoping Plan that describes the approach California will take to reduce greenhouse gases (GHG) to achieve the goal of reducing emissions to 1990 levels by 2020. The Scoping Plan was first considered by the Board in 2008 and must be updated every five years. ARB is currently in the process of updating the Scoping Plan. Details regarding this update are outlined below.

'''AB 32 Scoping Plan Update'''

The Scoping Plan Update (Update) builds upon the initial Scoping Plan with new strategies and recommendations. The Update identifies opportunities to leverage existing and new funds to further drive GHG emission reductions through strategic planning and targeted low carbon investments. The Update defines ARB's climate change priorities for the next five years and sets the groundwork to reach California's post-2020 climate goals set forth in Executive Orders S-3-05 and B-16-2012. The Update will highlight California's progress toward meeting the near-term 2020 GHG emission reduction goals defined in the initial Scoping Plan. It will also evaluate how to align the State's longer-term GHG reduction strategies with other State policy priorities for water, waste, natural resources, clean energy, transportation, and land use.

'''What are the key focus areas for the Update?'''

ARB plans to focus on six key topics areas for the post-2020 element. These include: (1) transportation, fuels, and infrastructure, (2) energy generation, transmission, and efficiency, (3) waste, (4) water, (5) agriculture, and (6) natural and working lands.

'''What recent activity has occurred in 2013?'''

In June 2013, ARB held a kickoff public workshop in Sacramento to discuss the development of the Scoping Plan Update, public process, and overall schedule. In July 2013, subsequent regional workshops were held in Diamond Bar; Fresno; and the Bay Area, which provided forums to discuss region-specific issues, concerns, and priorities. In addition, ARB accepted and considered informal stakeholder comments from June 13, 2013 through August 5, 2013. ARB also reconvened the Environmental Justice Advisory Committee to advise, and provide recommendations on the development of, this Update. On October 1, 2013, ARB released a discussion draft of the Update to the AB 32 Scoping Plan for public review and comment. On October 15, 2013, ARB held a public workshop and provided an update to the Board at the October 24, 2013 Board Hearing. Extensive public comment and input was received at the October Board Hearing. In addition, over 115 comment letters were submitted on the discussion draft.

'''What activities are planned for 2014?'''

In late-January 2014, ARB plans to release the draft proposed Scoping Plan Update and Environmental Assessment. In February 2014, ARB will have a Board meeting discussion that will include additional opportunities for stakeholder feedback and public comment. In Spring 2014, ARB will hold a Board Hearing to consider the Final Scoping Plan Update and Environmental Assessment.

'''What is the status of AB 32 implementation?'''

The California Global Warming Solutions Act of 2006 (AB 32) has been implemented effectively with a suite of complementary strategies that serve as a model going forward. [[California]] is on target for meeting the 2020 GHG emission reduction goal. Many of the GHG reduction measures (e.g., Low Carbon Fuel Standard, Advanced Clean Car standards, and Cap-and-Trade) have been adopted over the last five years and implementation activities are ongoing. California is getting real reductions to put us on track for reducing GHG emissions to achieve the AB 32 goal of getting back to 1990 levels by 2020.<ref name="arb.ca.gov"/>

==Cap-and-Trade==
On December 17, 2010 ARB adopted a cap-and-trade program to place an upper limit on state-wide greenhouse gas emissions. This is the first program of its kind on this scale in the United States, though in the north-eastern United States, the Regional Greenhouse Gas Initiative [[Regional Greenhouse Gas Initiative|(RGGI)]] works on a similar principle. Through the [[Western Climate Initiative]] (WCI), California is working to link its cap and trade system to other states. In October 2013, California officially linked its cap-and-trade program with Quebec Ministry of Sustainable Development, Environment, Wildlife, and Parks. The program had a soft start in 2012, with the first required compliance period starting in 2013. Emissions are to be reduced by two percent each year through 2015 and three percent each year from 2015 to 2020. The rules apply first to utilities and large industrial plants, and in 2015 will begin to be applied to fuel distributors as well, eventually totaling 360 businesses at 600 locations throughout the State of California. Free credits will be distributed to businesses to account for about 90 percent of overall emissions in their sector, but they must buy allowances (credits) at auction, to account for additional emissions. The auction format used will be single round, sealed bid auction. A preliminary auction was held August 30, 2012 with the first actual quarterly auction to take place November 14, 2012.<ref>{{cite web|url=http://www.arb.ca.gov/cc/capandtrade/auction/auction.htm|title=Quarterly Auction and Reserve Sale Information - Cap-and-Trade|work=ca.gov}}</ref><ref>{{Cite report|url=https://ww2.arb.ca.gov/sites/default/files/2020-08/results_summary.pdf|title=CALIFORNIA CAP-AND-TRADE PROGRAM SUMMARY OF CALIFORNIA-QUEBEC JOINT AUCTION SETTLEMENT PRICES AND RESULTS|date=May 2021|publisher=California Air Resources Board|access-date=29 July 2021}}</ref>

=== CARB Quarterly Auction Results ===<!-- This could probably be formatted as a table -->
These auctions demonstrate the following trends: (1) after an initial spike in qualified bidder number, the number of qualified bidders began to decrease; (2) the percentage of 2015 and 2016 allowances sold increased continually to reach 100%; (3) the percentage of current year allowances sold remained constant at 100%; (4) although the settlement prices for current year allowances initially increased, they then began to decrease; (5) the settlement prices for the 2015 or 2016 allowances have increased.{{Citation needed|date=July 2021}}

Some of the most well-known bidders were California Department of Water Resources, Campbell Soup Supply Company, Chevron U.S.A. Inc., Citigroup Energy Inc., Exxon Mobil Corporation, J.P. Morgan Ventures Energy Corporation, Noble Americas Gas & Power Corp., [[Pacific Gas and Electric Company]], Phillips 66 Company, Shell Energy North America, Silicon Valley Power, Southern California Edison Company, The Bank of Nova Scotia, Union Pacific Railroad Company, and Vista Metals Corp. A qualified bidder is an entity that registered for the auction, submitted an acceptable bid guarantee, and received acceptance from the ARB to participate in the auction.<ref name=":5">{{Cite report|url=https://ww2.arb.ca.gov/sites/default/files/classic/cc/capandtrade/auction/november-2013/results.pdf|title=California Air Resources Board Quarterly Auction 5 November 2013 Summary Results Report|date=22 November 2013|publisher=California Air Resources Board|access-date=29 July 2021}}</ref>

{| class="wikitable sortable mw-collapsible"
|+CARB Quarterly Auction Results
!Auction no.
!Quarter
!Year of Allowances
!No. of Allowances
!Median Allowance Price (USD)
!% of available allowances bought
|-
| rowspan="2" |1<ref>{{Cite report|url=https://ww2.arb.ca.gov/sites/default/files/classic/cc/capandtrade/auction/november_2012/updated_nov_results.pdf|title=California Air Resources Board Quarterly Auction 1 November 2012 Summary Results Report|date=5 June 2013|publisher=California Air Resources Board|access-date=29 July 2021}}</ref>
| rowspan="2" |{{Date table sorting|2012|November}}
|2013
|23,126,110
|11.81
|97
|-
|2015
|5,576,000
|10.75
|91
|-
| rowspan="2" |2<ref>{{Cite report|url=https://ww2.arb.ca.gov/sites/default/files/classic/cc/capandtrade/auction/february_2013/updated_feb_results.pdf|title=California Air Resources Board Quarterly Auction 2 February 2013 Summary Results Report|date=5 June 2013|publisher=California Air Resources Board|access-date=29 July 2021}}</ref>
| rowspan="2" |{{Date table sorting|2013|February}}
|2013
|12,924,822
|12.91
|88.15
|-
|2016
|4,440,000
|11.10
|100
|-
| rowspan="2" |3<ref>{{Cite report|url=https://ww2.arb.ca.gov/sites/default/files/classic/cc/capandtrade/auction/may-2013/updated_may_results.pdf|title=California Air Resources Board Quarterly Auction 3 May 2013 Summary Results Report|date=5 June 2013|publisher=California Air Resources Board|access-date=29 July 2021}}</ref>
| rowspan="2" |{{Date table sorting|2013|May}}
|2013
|14,522,048
|14.25
|90.22
|-
|2016
|7,515,000
|11.02
|86.49
|-
| rowspan="2" |4<ref>{{Cite report|url=https://ww2.arb.ca.gov/sites/default/files/classic/cc/capandtrade/auction/august-2013/results.pdf|title=California Air Resources Board Quarterly Auction 4 August 2013 Summary Results Report|date=21 August 2013|publisher=California Air Resources Board|access-date=29 July 2021}}</ref>
| rowspan="2" |{{Date table sorting|2013|August}}
|2013
|13,865,422
|13.01
|95.5
|-
|2016
|9,560,000
|11.10
|96.3
|-
| rowspan="2" |5<ref name=":5" />
| rowspan="2" |{{Date table sorting|2014|November}}
|2013
|16,614,526
|11.55
|96.2
|-
|2016
|9,560,000
|11.15
|91.3
|}<!-- https://ww2.arb.ca.gov/our-work/programs/cap-and-trade-program/auction-information/auction-notices-and-reports -->

==Offsets==
In addition to emission allowances, CCAs. Compliance entities may also use a certain percentage of offset credits in the system. Offsets credits are generated by projects that reduce emissions or act as sinks for green house gasses. Currently the Air Resources Board allows for different types of offset projects to generate offset credits: U.S. Forest and Urban Forest Project Resources, Livestock Projects (methane emission control), Ozone Depleting Substances Projects, and Urban Forest Projects.<ref>{{cite web|url=http://www.arb.ca.gov/cc/capandtrade/offsets/offsets.htm|title=Compliance Offset Program|author=California Air Resources Board|work=ca.gov}}</ref>

Offset provisions in the cap and trade scheme are however controversial and have been challenged in court. In March 2012, Citizens Climate Lobby and Our Children's Earth Foundation, two California environmental groups, sued the California Air Resources Board for the inclusion of its offset provisions.<ref>{{Cite court|litigants=Citizen's Climate Lobby et. al. vs. California Air Resources Board et. al.|court=Superior Court of California|opinion=CGC-12-519554|date=25 January 2013|url=http://www.acoel.org/file.axd?file=2013%2F1%2FOffset+ruling+1.25.13.pdf.pdf.pdf.pdf |archive-url=https://web.archive.org/web/20140202172605/http://www.acoel.org/file.axd?file=2013%2F1%2FOffset+ruling+1.25.13.pdf.pdf.pdf.pdf |archive-date=2014-02-02 }}</ref> Their request was denied and when the Our Children's Earth Foundation appealed the decision was affirmed.<ref>{{Cite court|litigants=Our Children's Earth Foundation v. State Air Resources Board|court=California Court of Appeal|opinion=A138830|date=23 February 2015|url=https://cite.case.law/cal-app-4th/234/870/}}</ref>

==Economic impacts==

According to ARB, AB 32 is "generating jobs, promoting a growing, clean-energy economy and a healthy environment for California at the same time."
* AB 32 supports efficiency-driven job growth
* California gets more clean energy venture capital investment than all states combined
* Green technologies produce new jobs faster
* Venture capital investment produces thousands of new jobs
* Green jobs are growing faster than any other industry
* California leads the nation in clean technology
* California's economic powerhouses support AB 32<ref name=":0">{{cite web|url=http://www.arb.ca.gov/cc/cleanenergy/clean_fs2.htm |title=California Climate Plan |access-date=2010-12-17 |url-status=dead |archive-url=https://web.archive.org/web/20160327114504/http://www.arb.ca.gov/cc/cleanenergy/clean_fs2.htm |archive-date=2016-03-27 }}</ref>
* AB 32 requires California to lower greenhouse gas emissions to 1990 levels by 2020.
* Climate change will have a significant impact on the sustainability of water supplies in the coming decades.<ref>{{cite web|date=16 July 2010|title=Water Sustainability - Water Supply at Risk - NRDC|url=http://www.nrdc.org/globalwarming/watersustainability/index.asp|url-status=live|archive-url=https://web.archive.org/web/20120607143715/http://www.nrdc.org/globalwarming/watersustainability/index.asp|archive-date=7 June 2012|work=Natural Resources Defense Council}}</ref>

==Political challenges==
The bill was challenged by [[California Proposition 23 (2010)|Proposition 23]] on the November 2010 ballot, which aimed to suspend AB 32 until state unemployment stayed below 5.5% for four consecutive quarters.<ref name=":1">{{Cite web|title=Proposition 23 (2010) {{!}} californiachoices.org|url=https://www.californiachoices.org/proposition-23-2010|access-date=2021-07-29|website=www.californiachoices.org|language=en}}</ref> The proposition was defeated by a wide margin.<ref name=":1" />

==Legal challenges==
Two lawsuits have been filed challenging the legality of ARB's auctions of GHG emission permits.<ref name=":2">{{Cite web|title=California Chamber of Commerce v. California Air Resources Board|url=http://climatecasechart.com/climate-change-litigation/case/california-chamber-of-commerce-v-california-air-resources-board/|access-date=2021-07-29|website=Climate Change Litigation|language=en-US}}</ref><ref name=":3">{{Cite web|title=FindLaw's California Court of Appeal case and opinions.|url=https://caselaw.findlaw.com/ca-court-of-appeal/1855982.html|access-date=2021-07-29|website=Findlaw|language=en-US}}</ref> The petitioners contend that the auctions are not authorized under AB 32, and that the revenues generated by the auctions violate California's [[Proposition 13]] or [[Proposition 26]].<ref name=":2" /><ref name=":3" /> A hearing was conducted on both challenges on August 28, 2013, in Sacramento County Superior Court.<ref>{{cite web|url=http://www.sacbee.com/2013/08/29/5690290/sacramento-judge-tentatively-says.html |url-status=dead |archive-url=https://web.archive.org/web/20130831081017/http://www.sacbee.com/2013/08/29/5690290/sacramento-judge-tentatively-says.html |title=Sacramento judge tentatively says state can auction air quality credits in California |archive-date=August 31, 2013 |access-date=September 7, 2016 }}</ref>

AB 26 was initiated by Assembly woman Susan Bonilla, District of Concord and it was heard in the Senate Environmental Quality Committee June 19, 2013. The bill is sponsored by the State Building and Construction trades Council, AFL-CIO, and supported by California Teamsters Public Affairs Council and the International Association of Heat and Frost Insulators Local 5. Briefly, the bill is about the labor unions who wants portion from cap and trade's revenue to increasing wages for their workers, getting more jobs and increasing the number of union members that work in the industry that actually produce greenhouse gas emission. In this case, union labor will be fighting environmental groups supportive of AB 32 goals. The bill passed, 7–0.<ref>{{Cite news|last=Grimes|first=Katy|date=23 June 2013|title=Greenhouse gas emitter Chevron could get AB 32 funds|work=California Political Review|url=https://www.capoliticalreview.com/top-stories/greenhouse-gas-emitter-chevron-could-get-ab-32-funds-see-more-at-httpwww-calwatchdog-com20130620greenhouse-gas-emitter-chevron-could-get-ab-32-fundssthash-4phhkyrc-dpuf/|access-date=29 July 2021}}</ref>{{Unreliable source?|date=July 2021|reason=The publication seems very right-leaning so other sources should be found to balance it}}{{Verify-inline|date=July 2021}}<!-- https://trackbill.com/bill/california-assembly-bill-26-construction-prevailing-wage/433341/ -->

On Nov 12, 2013 The California Chamber of Commerce launched the first industry lawsuit against the auction portion of California's cap-and-trade program on the basis that auctioning off allowances constitutes an unauthorized, unconstitutional tax. The complaint was filed for Sacramento Superior Court and seeks to stop the auction and have the auction regulations declared invalid. However, California superior court has rejected the challenges to the state's cap-and-trade program, upholding a significant element of California's suite of programs to comply with AB 32 and to reduce the state's greenhouse gas emissions.
-<ref>{{Cite news|last=Horowitz|first=Cara|date=14 November 2013|title=California cap and trade survives industry tax challenge|work=LegalPlanet|url=https://legal-planet.org/2013/11/14/california-cap-and-trade-survives-industry-tax-challenge/|access-date=29 July 2021}}</ref>

==See also==
{{Portal|Global Warming|Weather}}
*[[Climate change (general concept)|Climate Change]]
*[[Kyoto Protocol]]
*[[Regulation of greenhouse gases under the Clean Air Act]]
*[[Sustainable Communities and Climate Protection Act of 2008]]
*[[Climate change in California]]

==References==
<references/>

==External links==
*[http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=ab_32&sess=0506&house=B&author=nunez Legal documentation]
*{{cite web|url=http://www.c2es.org/us-states-regions/action/california/ab32|url-status=dead|title=California Global Warming Solutions Act (AB 32)|author=<!--Staff writer(s); no by-line.-->|website=c2es.org|publisher=[[Center for Climate and Energy Solutions]]|archive-url=https://web.archive.org/web/20140415065239/http://www.c2es.org:80/us-states-regions/action/california/ab32|archive-date=15 April 2014|access-date=September 29, 2016}}
*{{cite web |url=http://www.nrdc.org/globalwarming/ca/ca.asp |title=A Golden Opportunity: California's Solutions for Global Warming |author=<!--Staff writer(s); no by-line.--> |date=June 19, 2007 |website=nrdc.org |publisher=[[Natural Resources Defense Council]] |access-date=September 29, 2016 }}
* {{cite journal |url=https://digitalcommons.lmu.edu/llr/vol41/iss1/21 |title=California Global Warming Solutions Act of 2006: Meaningfully Decreasing Greenhouse Gas Emissions or Merely a Set of Empty Promises |author=Cobo, Kimberly |date=September 1, 2007 |journal=Loyola of Los Angeles Law Review |volume=41 |issue=1 |access-date=6 December 2018}}

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