SB 1033 Summary

• Requires the State Air Resources Board to distribute allowances (authorizations to emit greenhouse gas emissions) only to regulated entities subject to greenhouse gas emissions limits, if market-based compliance mechanisms are adopted

• Prohibits regulated entities from selling or trading allowances to any entity other than another regulated entity

• Defines "regulated entity" as an entity with an obligation to surrender allowances under the greenhouse gas emissions regulations

• Applies to California's cap-and-trade program beginning in 2012, covering approximately 600 of the state's largest greenhouse gas emitting stationary sources, with allowance values potentially totaling $143 billion between 2012 and 2020