ARB approves new carbon fee

By CMTA Staff

Capitol Update, Oct. 2, 2009 Share this on FacebookTweet thisEmail this to a friend

On September 24, the California Air Resources Board (ARB) passed a carbon fee to be levied on an estimated 350 "polluting" California businesses. Such businesses include utility companies, oil refineries, cement plants and various other manufacturers.  

The new fee would charge companies 15 cents per ton of carbon dioxide starting as early as next year. Proceeds collected from the fee will be used to fund the implementation efforts associated with AB 32 as well as any additional costs. According to ARB estimates, $63.1 million will be generated each year for the first three years. That amount, however, will decrease to an estimated $36.2 million per year starting in 2014 when the fee will be lowered to 9 cents per ton of carbon dioxide.

CMTA, along with a broad-based coalition of business and taxpayer groups, believe that singling out 350 companies for this fee is unfairly burdensome. ARB assumes that the new fees will be passed on to consumers, but this is not always true. Increased prices may cause buyers to choose other providers, to conserve, to adopt other technologies, or take other actions that undermine this assumption.

For more information on the administrative fee, please see
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