CLFP Schedules AB 32 Cap-and-Trade Technical Workshop

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Based on recent studies, it is a near certainty that the upcoming cap-and-trade regulation will cost most food processors at least $1.5 million to $2.5 million to buy carbon allowances in the 2013-2020 time period. According to a case study done by Andrew Chang and Associates, estimated compliance costs for fruit and vegetable processors alone could run as high as $150 million by 2020. Add to this the very real potential that the auction may not function properly or be manipulated by speculators. Simply put, the cap-and-trade regulation poses real financial and compliance risks for food processors in the coming years.

In light of the fast approaching auction deadline scheduled for November 14, CLFP is holding a technical workshop on AB 32 cap-and-trade on October 9, 2012 at the CA Farm Bureau Federation Building in Sacramento, CA. Allan Bedwell, with the URS Corporation, will be bringing his cap-and-trade team to provide a general overview of the cap-and-trade scheme.

A variety of issues will be addressed as they relate to food processors. The workshop is also designed to answer questions regarding any topic associated with AB 32 or cap-and-trade that participants may have.

Some of the major issues to be covered include:

Facility Preparedness: 10 things your company needs to do before the end of the year and 10 mistakes to avoid.

Cap-and-Trade: Logistics, options and methods to reduce compliance costs.

Auctions: How the auctions will work and strategies to reduce costs and an examination of Secondary Markets, Brokers & Traders, Allowances, Offsets and Banking.

Benchmarks and Leakage Impacts: How to keep CARB focused on rewarding efficiency, growth and competition: a review of CARB’s forthcoming product-based benchmark and leakage efforts.

Allowance and Offsets: Not all allowances and offsets are created equal. How to bank and manage risk to reduce compliance costs.

Compliance Instrument Tracking System Service (CITSS): And other hidden compliance costs. How to effectively manage your account and keep an eye on the regulators.

Energy Costs: How to anticipate and manage increased energy costs caused by AB 32.

Given the number of topics, CLFP has decided on a different format for the workshop. The workshop will start with a half hour whole group session, and then the workshop will break into two concurrent sessions in separate rooms. Each concurrent session will be an hour in length with two presentations per session. Questions and answers will be allowed both during and following each presentation.

Finally, a half-hour whole group session will end the workshop. In addition, URS will be taking appointments for consultations at the end of the meeting. A meeting agenda with detailed information on the sessions and speakers is available HERE.

URS/CLFP AB 32 Workshop
Date: Tuesday, October 9, 2012
Time: 1:00 pm – 5:00 pm
Location: CA Farm Bureau Federation (CFBF)
2300 River Plaza Dr.
Sacramento, CA 95833
Phone: (916) 561-5520

Meeting Room: 1st Floor Conference Room and CFBF Board Room

Conference Call: Conference call-in will be available for this meeting.

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