The California Air Resources Board voted 9-1 to adopt cap and trade regulations for AB32, California's 2006 climate law. The move, which establishes the first compliance carbon trading system in the United States, opens the door for carbon offsets generated via forest conservation projects.
The new rules will allow polluting industries to buy and sell emissions allowances. 90 percent of allowances would be free during the early stages of the program, but as the cap tightens, fewer allowances will be available. By 2020 the cap would limit emissions to 1990 levels.