California Officials To Finalize State’s ‘Cap And Trade’ System | California is set to formally adopt the nation’s most comprehensive so-called “cap and trade” system. The plan, designed to provide financial incentives for polluters to reduce greenhouse gas emissions, is part of the state’s landmark 2006 law, AB 32, that aims to reduce the emissions to 1990 levels by 2020. The AP reports that the California Air Resources Board is expected to approve the final plan today. Beginning in 2013, California’s system will put emissions allowances on power plants and other of the worst polluting facilities. Others will fall under the plan in 2015, and in all, the plan will cover 85 percent of California’s emissions.