In early December 2013, CARB released three documents pertaining to the continued implementation of the Cap-and-Trade program.
First, CARB has issued a statement that the Cap-and-Trade programs administered by Quebec and California will become officially linked effective January 1, 2014. Throughout 2013, both Quebec and CARB have taken steps to prepare their respective programs for linkage. The linkage would allow compliance instruments to be transferred between the two jurisdictions. Any California entity with direct corporate association(s) registered in Quebec's program will be required to share the applicable purchase and holding limits between the entities in the jurisdictions. CARB and Quebec are not yet ready to hold a joint auction but this capability is expected to be established so that a joint auction can be held later in 2014. Further information regarding the linkage may be found in the Linkage Readiness Report provided by CARB in November 2013.
Second, on December 2, 2013, CARB released the 2014 Annual Auction Reserve Price Notice. This document contains the 2014 Auction Reserve Price as well as the number of current (2014) and advance (2017) allowances that will be available for sale at the quarterly auctions in 2014. The Auction Reserve Price is the minimum price (in dollars per metric ton) at which any GHG allowance can be sold at a given auction. The 2013 Auction Reserve Price was $10.71. The Cap-and-Trade regulation states that the Auction Reserve Price will be "increased annually by 5 percent plus the rate of inflation as measured by the most recently available twelve months of the Consumer Price Index for All Urban Consumers." The 2014 Auction Reserve Price is set at $11.34. For reference, 2013 and 2016 vintage allowances sold at the most recent auction (November 2013) for $11.48/allowance and $11.10/allowance, respectively.
This 2014 Annual Auction Reserve Price Notice also identifies prices for the Allowance Price Containment Reserve and 2014 Auction dates. The 2014 quarterly auctions are scheduled to take place on February 19th, May 16th, August 18th, and November 19th. An Auction Notice will be published 60 days prior to each auction and will provide details regarding the auction format, eligibility, and how many allowances of each vintage will be auctioned at the corresponding quarterly auction. The 2014 Annual Auction Reserve Price Notice may be found here.
Finally, CARB has released a document summarizing the free allocation of 2014 vintage allowances to different industrial sectors. The document shows how many allowances will be freely allocated to each sector and which facilities are included in that sector. Overall, in 2014, CARB expects to distribute about 54.4 million 2014 vintage allowances to 156 facilities. The document regarding the distribution of freely allocated 2014 allowances may be found here.