Today, the ARB met in Sacramento to consider a package of amendments and a new compliance offset protocol under the State’s cap and trade program. Approval of the MMC protocol adds the State’s fifth compliance offset protocol. MMC projects are anticipated to generate significant supply of compliance units known as ARB Offset Credits, which regulated entities can use for up to 8% their compliance obligation.
In addition to the MMC protocol, the Board also approved amendments covering a wide-range of issues including industry benchmarks and assistance factors, free allowances for natural gas utilities, resource shuffling, market oversight, legacy contracts and annual surrender requirements.
If you have any questions on the package of amendments adopted today, or the market’s response, please contact our US Carbon team at: +1 415.963.9137 or +1 914.323.0265.