California Air Resources Board has begun formal rule making for a statewide Cap and Trade system. Because the federales lag in designing nationwide strategies, California may coordinate with the European Union, and certain provinces in China and Canada to link systems. Once again, Californian’s find themselves at the edge of the world. The view is exhilarating.

California Cap And Trade Rules: Sweeping Regulations Set To Be Adopted
By Jason Dearden, Huffington Post, December 16, 2010

If a company in Fresno is 15 percent under its pollution allowance, it can sell the unused portion to a company in Long Beach that has exceeded its quota. The Fresno company gets to keep the money.