The California Senate is unveiling a proposal today to overhaul the cap-and-trade system.
The state’s marquee climate change program requires polluters to buy permits for the greenhouse gases they emit as an incentive for companies to reduce their carbon footprint. The permits are purchased through a state-run auction or on the private market.
Last year the Legislature strengthened its climate change goals and reduced its emissions target to at least 40 percent below 1990 levels by 2030. The governor has asked the Legislature to extend the cap-and-trade program beyond 2020, which would help meet the goals.
Sen. Bob Wieckowski, D-Fremont, is introducing SB 775 to extend the program and create a so-called price collar that sets a minimum and maximum cost for credits. A recent report from the Legislative Analyst’s Office recommends that the Legislature set a price ceiling to prevent the price of permits from skyrocketing, which companies would likely pass on to consumers by raising gas prices.
Read the whole story in the Sacramento Bee