On October 21, 2013, FERC and the California Air Resources Board (“CARB”) jointly executed a Memorandum of Understanding (the “Memorandum”), setting out a process for inter-agency cooperation in the dissemination of certain information.  The Memorandum is non-binding and executed for the purpose of formalizing the agencies’ shared intent.  FERC and CARB anticipate sharing information on general energy issues of mutual interest as they relate to the California and Western energy markets.

Specifically, the agencies plan on sharing information related to:

  • CARB’s Cap and Trade program, including transactional data from CARB’s quarterly and reserve auctions for emissions allowances and bilateral purchases and sales of emissions allowances; purchases and sales of offset credits under CARB’s program; factors affecting supply and demand for compliance instruments; CARB’s surveillance and investigative processes; CARB’s market monitoring and oversight activities; and
  • FERC’s analysis of Western gas and electricity markets; FERC’s surveillance and investigative processes and methods; FERC’s market monitoring and oversight activities, including staff insights and analyses.

The agencies will also share any issues of concern related to the markets they each regulate, including providing referrals of any perceived suspicious activity.

Any information shared between the agencies under the Memorandum will be non-public, and treated as confidential.

To view the Memorandum, click here.