California Draft Cap and Trade Rules

SOLICITATION per California rules governing attorneys.

California's Air Resources Board, ARB, is mandated under AB 32 to prepare a regulation that allows cap and trade for CO2 and other greenhouse gas emissions. Accordingly, ARB published on November 24, 2009, a Draft Proposed Regulation for Cap and Trade. Public comments are requested, with a due date for comments of January 11, 2010.

For entities that emit at least 25,000 metric tons of CO2-equivalent per year, cap and trade rules will apply starting on January 1, 2012. Also, electric power generators (including imports) will be subject to the cap and trade rules starting on January 1, 2012. Three years later, January 1, 2015, cap and trade will apply to all facilities with industrial fuel combustion that produce emissions below 25,000 metric tons of CO2-equivalent per year, and all commercial and residential fuel combustion of natural gas and propane.

CO2-equivalent is defined as CO2 plus emissions of methane, SF6, Nitrous oxide, perfluorocarbons, hydrofluorocarbons, and nitrogen trifluoride. Each gas is assigned a weighting value based upon its relative greenhouse effect compared to CO2, (the equivalent amount of CO2).

Businesses that require assistance in understanding the cap and trade proposed rules, or assistance in drafting comments to ARB may contact Mr. Sowell for assistance.

Also, facilities that require assistance in determining whether they emit 25,000 metric tons per year may contact Mr. Sowell for assistance.

Roger E. Sowell, Esq.

rsowell@resowell-law.com

Marina del Rey, California