In developing the 2022 Draft Scoping Plan Update (Draft Scoping Plan), CARB evaluated four scenarios to identify the most viable path to achieve the state's 2030 interim GHG reduction and GHG neutrality targets. Our first post on this topic discusses CARB's ultimate selection of the third scenario, which adopts a carbon neutrality target for 2045 instead of 2035, as the best among the four. In this second post, we discuss how the Cap-and-Trade Program (the Program) features in the Draft Scoping Plan. AB 32 authorized CARB to adopt a market-based compliance mechanism with "declining annual aggregate emission limits for sources or categories of sources that emit greenhouse gas emissions" through 2020. The market-based compliance mechanism deigned by CARB went into effect in 2012 in the form of the California Cap-and-Trade Program. In 2017, AB 398 authorized the extension of the Program through 2030, instituted certain design changes, and set a new GHG reduction goal of 40 percent by 2030.