Description:

Provides various analyses related to an oversupply of allowances in the state's cap-and-trade program. Specifically, the letter:

• Estimates the range of the cumulative allowance oversupply in the cap-and-trade program through 2020.
• Assesses the impact of allowing this oversupply to carry over into a post-2020 program on (1) future greenhouse gas (GHG) emissions and (2) near- and long-term allowance prices.
• Assesses the impact of alternative approaches to addressing the oversupply of allowances and the connection between the current program and a post-2020 program.