Posts Tagged: allowances
OPINION: The California Air Resources Board (CARB) recently released the latest quarterly allowance auction results for California’s cap-and-trade program. While demand rose compared to the previous auction in May, a majority of allowances still went unsold due to uncertainty over the program’s future past 2020 – suggesting policymakers should take action, not solace, from better August auction results.
It’s a familiar fight in the Capitol: Oil companies and their allies say jobs and Californians’ ability to get from place to place at reasonable cost are at stake, which can have a dramatic impact on lower income workers. Environmentalist say the future of the planet is what it’s all about, starting in California. Ultimately, the issue may be decided by millions of voters — not Sacramento lawmakers.
OPINION: When the California Air Resources Board released the results of its May auction of carbon allowances, audible gasps from around the state could be heard from the space station. I kid – but only just a little. The auction results did in fact create a great shock: many had expected at least half a billion dollars to be collected at the quarterly auction, but the auction generated only about ten million dollars. But here’s the truth: The super-low May auction result should actually help the State’s legal defense of cap-and-trade.
Permission slips covering an array of fuels used in California – and which account for nearly 40 percent of the state’s carbon emissions – will be put on the auction block as part of the state’s landmark law to curb climate-changing greenhouse gases.
Currently, fuel is about $4 per gallon and California burns about 14 billion gallons annually. Estimates of the magnitude of a potential hike vary widely, but most range from 15 to 20 cents per gallon, which would raise perhaps $2.1 billion to $2.8 billion annually. Efforts are under way in the Capitol, led by the petroleum industry, to exempt transportation fuels from the auctions until 2018.
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