AB 32 auction taxes to be discussed Jan. 11th

By CMTA Staff

Capitol Update, Jan. 8, 2010 Share this on FacebookTweet thisEmail this to a friend

The Economic and Allocation Advisory Committee (EAAC) was appointed to advise California’s Air Resources Board (CARB) on the implementation of AB 32 and an associated cap-and-trade system to reduce California greenhouse gas (GHG) emissions to 1990 levels by 2020.  On January 11, the EAAC will present their final allocation recommendations to the State.

One topic under discussion will greatly impact the success of AB 32 and California’s economy.  EAAC is recommending that CARB rely principally on an auction of allowances for the cap-and-trade program.

Employers and government agencies with large GHG emissions would pay billions of dollars under this proposed program. An “auction” by CARB would determine the amount to be paid. This is not an auction in the conventional sense. In reality, it’s an “Auction Tax” which could range from $10 to more than $200 per ton of emissions. At $60 per ton, such a tax would total $143 billion between 2012 and 2020. This is in addition to other AB 32 costs.

EAAC will have a final public conference call in February to adopt its economic impacts report. A presentation of both EAAC reports will be made to the Air Resources Board on February 25th. ARB staff will consider the EAAC recommendations and propose an allocation approach to the Board in the fall of 2010 along with the cap-and-trade regulation.

More info on EAAC, including the Jan. 11, meeting info can be found at: www.climatechange.ca.gov/eaac/index.html

Related links:
See testimony of Dorothy Rothrock, CMTA V.P., Government Relations, before the Senate Select Committee on Climate Change and AB 32 Implementation January 7.
See testimony illustrating what we’re up against

Read more Energy articles

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