California board approves contentious cap-and-trade overhaul
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Sacramento. On Friday the California Air Resources Board approved an overhaul of the state's cap-and-trade program, voting to allow up to roughly $3.5 billion in free pollution allowances for manufacturers and oil refineries that build emission-reduction projects. Ten board members adopted the measure after two days of public hearings, following the Legislature and Gov. Gavin Newsom's prior reauthorization through 2045.
The decision drew protests from environmental groups this week, who said it would weaken efforts to curb greenhouse gas emissions, while the oil industry supported the changes as necessary to avoid higher energy costs. The Legislative Analyst's Office projected quarterly auction revenue could fall from about $4 billion annually to roughly $2 billion, setting up a potential budget dispute in Sacramento.
More context
Timeline
- 1. Last year: California Legislature and Gov. Newsom reauthorized cap-and-trade through 2045.
- 2. Industry lobbied regulators seeking flexibility amid rising gas prices.
- 3. Two days of CARB hearings included extensive public comment before the vote.
- 4. Friday: CARB approved changes allowing up to roughly $3.5 billion in free allowances.
- 5. LAO projected auction revenue could drop from about $4 billion to $2 billion, prompting budget tensions.
Why it matters
This cap-and-trade overhaul could affect your wallet. If the oil industry avoids higher energy costs, you might see stable gas prices. But, the state's budget could take a hit. That may impact public services. Keep an eye on your local news for updates.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
