Gino DiCaro

Govís budget uses Cap-and-Trade revenue

By Gino DiCaro, VP, Communications

Capitol Update, Jan. 6, 2012 Share this on FacebookTweet thisEmail this to a friend

A part of the Governor’s budget proposed yesterday, January 5th, includes authority to use $1 billion to be raised from the implementation of AB 32 (the Global Warming Solutions Act of 2008) through its Cap-and-Trade program.

The Governor proposes that funds be used according to a plan to be developed by the Director of Finance and the California Air Resources Board later this year.  Outlined are purposes that would be deemed appropriate, including clean and efficient energy, low carbon transportation, natural resource protection, and sustainable infrastructure development.

CMTA believes the use of this money in this manner is beyond the scope of authority under AB 32 and the California Constitution. The purpose of cap-and-trade is to reduce greenhouse gas emissions from regulated sources – including manufacturers, electric generators, universities, and public agencies. AB 32 and cap-and-trade is not intended to be a revenue source for the state of California.

This point was further articulated in a statement issued by Dorothy Rothrock, CMTA’s V.P., Government Relations, on behalf of the AB 32 Implementation Group:

“At a time when the public is concerned about jobs and the economy, the budget proposes a new tax on California businesses for climate change activities. The anticipated $1 billion is not windfall revenue. The funds will be paid by California employers suffering the worst recession since the Great Depression. To avoid litigation and protect jobs, the revenues should be maintained within the cap-and-trade program and must be used in a manner that meets the requirements of a legal fee.”
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