California governor signs cap-and-trade revenue bills

[Bad_Daddy 2,209]

http://news.yahoo.com/california-governor-signs-cap-trade-revenue-bills-075224192.html

Reuters – 11 hrs ago

AN FRANCISCO, Oct 2 (Reuters Point Carbon) - California Governor Jerry Brown has signed two bills related to the use of revenue raised through the sale of carbon allowances, although details of how the money will be spent won't be determined until next year.

The bills are the first to address the estimated $660 million and $3 billion in revenue that will be generated during the first year of California's carbon cap-and-trade scheme, which begins in January.

The first bill creates a new account for the revenue to be deposited into, and directs the Department of Finance and the California Air Resources Board (ARB) to develop an investment plan for the funds.

That plan, expected to be released in the spring of 2013, will be submitted for approval to the legislature as part of the governor's budget and will be reviewed and updated on an annual basis.

Under California state law, the money raised through the sale of carbon allowances must be spent on programs that help reduce the state's greenhouse gas emissions.

"There's a broad array of possible things to spend the funds on," Mary Nichols, chair of the ARB told reporters last week, citing energy efficiency, forest protection and high-speed rail as possible recipients.

The second bill signed by Brown over the weekend requires that 25 percent of all the auction revenue go toward economically disadvantaged communities, which tend to suffer from worse air quality than wealthier neighborhoods.

The bill tasks the California Environmental Protection Agency with determining what communities qualify for the money.

The state will select community recipients next year.

The first carbon allowance auction will be held on November 14, where the state will sell 61.3 million allowances.

[one...two...tree 2,762]

Good for Jerry! It will help bring down the state's debt.

[Bad_Daddy 2,209]

Good for Jerry! It will help bring down the state's debt.

So your all for big business being able to bypass the pollution laws if they can afford it yes?

[Penny Lane 8,159]

[Bad_Daddy 2,209]

Two highly intelligent and informative replies to this thread.

[Mr. Big Dog 10,747]

So your all for big business being able to bypass the pollution laws if they can afford it yes?

The more pollution a business causes, the less competitive it becomes. This will drive innovation of and investment into technologies that reduce pollution. That's a good thing.

[Bad_Daddy 2,209]

The more pollution a business causes, the less competitive it becomes. This will drive innovation of and investment into technologies that reduce pollution. That's a good thing.

Do you have a link to where that's actually worked before? Because it looks to me like it's a sell out for a quick buck.

[one...two...tree 2,762]

So your all for big business being able to bypass the pollution laws if they can afford it yes?

What it will do is encourage reduction in pollution, which is a step in the right direction with the added bonus of reducing the state's debt.

[one...two...tree 2,762]

Do you have a link to where that's actually worked before? Because it looks to me like it's a sell out for a quick buck.

It worked with reducing acid rain.

[Mr. Big Dog 10,747]

It worked with reducing acid rain.

Yep. Same thing, really. From a common sense point of view, why would a business continue to pollute if that adds to the cost of doing business? Cap & Trade is an incentive to deploy clean technologies - it's a market based approach to getting to a better environment.

Edited October 2, 2012 by Mr. Big Dog

[Gary and Alla 3,694]

Good for Jerry! It will help bring down the state's debt.

The Governors of Texas, Arizona, Oregon said the same thing! Good for Jerry. This should be interesting beginning next year when they start explaining that "Revenues from cap and trade are less than anticipated"

Yep. Same thing, really. From a common sense point of view, why would a business continue to pollute if that adds to the cost of doing business? Cap & Trade is an incentive to deploy clean technologies - it's a market based approach to getting to a better environment.

It is an incentive to move out of California. We will see who is right.