California Air Resources Board offers update on GHG allowances

On Dec. 4 at noon PT the California Air Resources Board (ARB) will release an update of the estimates of the total state-owned allowances that will be offered at auctions through 2020 under the cap-and-trade program. 

These estimates are for state-owned allowances only and do not include estimates of allowances consigned for sale by utilities from their electricity or natural gas allocation.  

Under the cap-and-trade program, emissions caps and associated greenhouse gas (GHG) allowance budgets are calculated for each calendar year. 

In the program, the calendar year from which the allowances are assigned is referred to as the “budget year.”  California GHG allowances are sold at one of four quarterly auctions held by ARB each year in February, May, August, and November.  Proceeds from State-owned allowances sold in the quarterly auctions are deposited into the Greenhouse Gas Reduction Fund.

Speaking of the air board, reserve sales will offer greenhouse gas (GHG) allowances from the Allowance Price Containment Reserve (APCR) for sale in three fixed-price, equal-sized tiers.

In 2015, the California reserve sales were scheduled approximately six weeks after each quarterly GHG allowance auction. Four reserve sales were scheduled in 2015. To date, no reserve sales have been held as there have been no qualified bidders. The fourth reserve sale of 2015 is scheduled for Dec. 30, 2015.

For further information about participation in the 2016 reserve sales, please contact: Chuck Seidler at (916) 324-0931 or cseidler@arb.ca.gov.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.