California and U.S. States

On this page:
Washington State
Other states with mandatory GHG reduction laws
Regional State Programs: WCI, RGGI, MGGRA


Carbon Share's initial focus was on California's Global Warming Solutions Act of 2006, also called AB32. AB32 committed the State to reducing emissions to 1990 levels by 2020.

Click here for the webpage on California and AB32.

Here is a brief history of California's public hearings and committees discussing a carbon market under AB32, and links to some of our public comment at those hearings.

2015: Legislature passes bills to extend GHG goals to 2030. Will the allocation of auction proceeds be re-considered?

2014: First distribution of the "climate dividend" in April. Legislature considers how to allocate auction proceeds. Governor's plans favor high-speed rail, with some to affordable housing, and a set aside for disadvantaged communities.

2013: ARB released a final auction proceeds investment plan to replace the draft investment plan. They accepted public comment for the April 25 public hearing on the use of auction proceeds. Dividends are not a recommended use in the draft plan.

2012: First auction takes place November 2012, CPUC proceeding includes first "climate dividend"

2011: Scoping Plan reviewed and re-adopted due to lawsuit, CPUC opens proceeding on allocation of allowances in the electricity sector

2010: December 2010: ARB considers and adopts Cap & Trade Regulation

2009: ARB continues hearings on AB32 implementation

In May 2009, Cal EPA announced they are convening a new Economic and Allocation Advisory Committee to continue to advise the State on cap and trade design under AB32. In his welcome letter to the members of the Committee, Governor Schwarzenegger wrote, "one idea in particular I would like you to explore among other options: the concept of returning the value of allowances back to the people, including through an auction of allowances and distribution of auction proceeds in the form of a rebate or dividend, in order to minimize the cost to California consumers and maximize the benefits to the state's economy." The first EAAC meeting was on July 1, 2009 from 9-3 at CalEPA Bldg in Sacramento.

2008: ARB Scoping Plan discusses designs for California's Carbon Market

AB32 gave the California Air Resources Board (CARB) the authority to impose an economy-wide cap on state-wide greenhouse gas emissions. CARB has a multi-track process which includes considering market mechanisms in its Scoping Plan.

We followed the discussion of market mechanisms in the ARB's AB32 Scoping Plan. The final Scoping Plan was adopted at the end of 2008. After the Scoping Plan is adopted, CARB will embark on a 2-year effort to develop specific implementation policies. Click here for upcoming public hearings on the Plan.

2007: Market Advisory Committee considered designs for California's Carbon Market

California passed the Global Warming Solutions Act of 2006 (AB32), committing the state to reduce carbon dioxide emissions to 1990 levels by 2020. A Market Advisory Committee (MAC) was formed to advise the state on market measures, especially cap and trade. Dozens of citizens provided public comments to the Market Advisory Committee, including:

  • Polluters should pay to use the atmosphere, and revenues should be used to compensate residents for higher energy prices and invest in a clean energy future.
  • The carbon cap should cover all carbon entering the economy.
  • Companies should not be allowed to buy cheap offsets overseas.

Click here for more information on California and AB32.


A group in Oregon called Oregon Climate has begun a campaign to implement Cap & Dividend at the state level. The bills they are promoting are here: SB965 and HB3250 would set a fee on polluters and return the money to Oregonians as a $500 to $1,500 annual dividend.

News about this effort:

Portland Business Journal 6-11-15:

Radio show about Oregon's efforts 6-18-15:

Kristin Eberhard at Siteline Institute 4-2-15: What If Polluters Paid and You Got the Money?

Kristin Eberhard's testimony to the Oregon legislature 6-15-15: Everything Oregon Legislators Need To Know About Stopping Climate Pollution

Washington State

A group in the state of Washington is collecting signatures for a proposed ballot measure in 2016 that would use revenues from a carbon price to reduce taxes, similar to British Columbia's revenue neutral carbon price.

Kristin Eberhard on Siteline Institute's blog 4-16-15: Three Things to Know About CarbonWA’s Revenue-Neutral Carbon Tax

Other states with mandatory GHG reduction laws


New Jersey

New York


States with Climate Action Plans

New Mexico
North Carolina (Text of Senate Bill 1134)

Regional Carbon Trading Programs

The Western Climate Initiative (WCI),

The Midwestern Greenhouse Gas Accord (MGGA),

The Regional Greenhouse Gas Initiative (RGGI),






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