AB 1207 aims to extend California’s Cap and Trade program, which is a market-based system that focuses on reducing greenhouse gas emissions and generating funds to invest in climate solutions. Currently, this bill would retain all of the existing program elements but would require the California Air Resources Board (CARB) to consider the “social cost” of emitting greenhouse gases as determined by the U.S. Environmental Protection Agency in 2023 in implementing their regulations.
The Cap and Trade program was created to help meet California’s goal of reducing emissions by 40 percent by 2030 compared to 1990 levels. AB 1207 would broaden the definition of the cost of emissions by considering the “social cost,” or the effects on public health and the environment.
This is a placeholder bill. It is highly likely that amendments will be added in the coming month to expand the content of what it does, at a minimum reauthorizing the program.
Bill author
