The State of California continues to finalize its cap-and-trade regulation. The regulation is expected to become enforceable January 1, 2012; however, covered entities will not have an emissions obligation until 2013. It is anticipated that the California Air Resources Board (CARB) will allocate emissions allowances and hold two allowance auctions in 2012. It was also announced in a CARB meeting on August 24, 2011, that three new offset protocols are being considered for possible adoption in 2012.