California cap and trade
Unlike RGGI, which covers only the power sector, California’s cap-and-trade program covers virtually the entire state economy. It was the first multi-sector cap-and-trade program in North America. The greenhouse gas emissions cap set under the program will decrease about 3 percent annually to help the state achieve its legislated goal to reduce emissions to 1990 levels by 2020. After that, under a state law enacted in 2017, the cap will be further reduced to help achieve an additional 40 percent reduction in state emissions by 2030. The program is linked with similar programs in the Canadian province of Québec and (soon) Ontario.
Washington Clean Air Rule
In 2016, Washington state’s Department of Ecology adopted the Clean Air Rule to reduce greenhouse gas emissions across the economy. The program sets facility-specific caps for large sources of emissions, beginning in 2017, and requires each facility to reduce emissions 1.7 percent each year thereafter (though some industrial facilities have slightly different annual reduction requirements). Unlike the other state programs, there are no emission allowances to auction, but sources can earn tradable credits by overachieving their reduction targets. Facilities can also use carbon offsets or allowances from other programs for compliance.