After the California Air Resources Board dropped a requirement that power providers swear they've not engaged in resource shuffling and then in mid-October approved more than a dozen safe harbor provisions allowing easier compliance with its carbon cap-and trade program, significant concerns remain. Stakeholders fear the legal vulnerability arising from complying with the Air Board\u2019s guidelines on acceptable energy trading activities because they are not legally binding. That is despite the fact that most stakeholders were relieved the agency backed off on setting hard parameters on resource shuffling and soon will release an expanded lists of activities not viewed as substituting clean power imports for coal-fired electricity that is diverted elsewhere (Current, Oct. 19, 2012). \u201cWe\u2019re committed to getting this guidance out before the first auction,\u201d said Dave Clegern. Air Board spokesperson. That auction is set for Nov. 14. \u201cAt this point there is not a firm date\u201d on the resource shuffling guidance, Clegern added. Several stakeholders expected the expanded guidance to be released Nov. 1. A major issue for traders and other contracting parties is who bears the legal liability for any material changes made after the guidance is issued and prior to adoption of final amendments that incorporate the safe harbor provisions into the cap-and-trade regulations. That includes possible penalties for \u201cgood faith,\u201d but differing interpretations of the guidance up to the time final rules are adopted, said Fabio Nehme, head of Electricite de France US Environmental Products. \u201cUnlike the regulation itself, this guidance does not have the force of law,\u201d the Air Board points out on its website. \u201cIt is not intended to and cannot establish new mandatory requirements beyond those that are already in the cap-and-trade regulation, and it does not supplant, replace or amend any of the legal requirements of the regulation. Conversely, this guidance\u2019s omission or truncation of regulatory requirements does not relieve operators of their legal obligation to fully comply with all requirements of the regulation.\u201d The Air Board is to continue monitoring activities after agreeing to drop the attestation requirement under which utilities were to vow they had not engaged in the juggling of clean and polluting resources. Over the next several months, agency staff and stakeholders are to attempt to agree on just what resource shuffling is and fold that into final regulations expected to be adopted next year. \u201cThere are a lot of moving parts,\u201d said Nehme. The Independent Energy Producers urged the Air Board to drop its efforts to define resource shuffling. IEP policy analyst Steven Kelly called the effort a \u201cfool\u2019s errand\u201d because utilities and power producers will find loopholes and exceptions. \u201cOnce defined, the market will adjust to the new standards and the behavior that the prohibition on resource shuffling is meant to avoid will continue in another form,\u201d he wrote in a comment letter sent to the board\u2019s Emission Market Assessment Committee Oct. 15.