Argus Air Daily Quotes Manatt Professional on CHP Plants' Cap-and-Trade Postponement

"Some Plants Shielded from California Cap-and-Trade"
Argus Air Daily

August 27, 2012 - Argus Air Daily quoted Manatt's Jon Costantino, a senior advisor in the firm's Climate Change, Environmental and Clean Energy Policy Practice, on California's decision to postpone the inclusion of certain facilities with combined heat and power (CHP) plants in the state's cap-and-trade program until the start of the second compliance period.

Argus Air Daily reports that the California Air Resources Board (ARB) has decided to exempt all facilities whose CHP plants would be the sole reason they would be covered by the cap-and-trade program until 2015, when the program will cover electricity and natural gas.

The exemption could help eliminate any remaining obstacles to ARB moving to the program's first auction. "They are picking off the remaining issues so they can start in November," said Costantino. "They just need to be able to keep the number of issues to a relatively small amount," before the first auction.