Still looking around for the best writeup, but this seems pretty good:
Just to add a few comments: limits in 2012 with no enforcement until 2013 sounds to me like the program really starts in 2013. OTOH, the market is already getting moving (see the last sentence from the article), so that's good.
I believe the free allowances are grandfathered from past emissions. That would also be anti-competitive, because new entrants would have to buy allowances. No wonder the Chamber wants them to be all free.
The part about water agencies complaining is news to me. Guess I should look that up.
The enviro justice groups' lawsuit is a huge mistake. This response is cutting it close to the law though - I hope it works out.
Together with Australia's carbon tax and the European Union's cap system finally getting beyond its intentionally-easy stage, we're seeing some incremental progress. We need far far more than incremental progress, but we shouldn't forget that it's happening, either.
Good writeup of the original California program here, by an offset critic who thinks California's system isn't too bad. I believe the finalized program is only marginally different.