CMTA opines in Capitol Weekly on flawed cap-and-trade

By CMTA Staff

Capitol Update, Aug. 30, 2012 Share this on FacebookTweet thisEmail this to a friend

Flawed cap-and-trade plan can still be fixed before Legislature leaves -- by Jack Stewart

After years of bureaucratic fog, there’s a ray of sunshine illuminating and hopefully repairing the California Air Resources Board’s (CARB) seriously flawed cap-and-trade auction program.  A group of legislators, armed with an opinion by the state’s Legislative Analyst’s Office  (LAO), is calling for common sense and moderation in a policy that is on the brink of costing California businesses and consumers billions of dollars, workers their jobs, and the state and local governments reduced revenues.

The business community has long supported a well-designed cap and trade program to help meet the goals of AB 32, the 2006 Global Warming Solutions Act. AB 32 instructs CARB to implement AB 32 in the most cost-effective technologically feasible manner.

All that changed when CARB saw an opportunity to rake in billions of dollars by withholding some of those emissions allowances. This would force California companies to compete for allowances in an auction that would pit them against global investors and speculators. When projected auction revenue found its way into the state’s general fund budget, the LAO estimated proceeds could range upwards of a billion dollars in the first year alone and significantly higher by 2020 ... READ ON

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