Gov. Jerry Brown could rightly take a bow. Speaker Anthony Rendon and Senate President Pro Tem Kevin de León ought to pat themselves on the back and give high-fives to Assembly Republican Leader Chad Mayes.
They all deserve accolades. They had important parts in approving the far reaching cap-and-trade package of bills that will shape California’s energy policy long after they’ve left their current offices.
The legislation sent a message across the country and world. No state has done more than California to curtail greenhouse gas emissions. Now that all the huzzahs are dispensed with, however, they all need to turn to the work at hand. There’s plenty of it ahead.
Already, the market is turning bullish for permits to pollute, otherwise known as carbon allowances. California cap-and-trade allowances sold for less than $13 per ton last year, and would have been like Monopoly money if the cap-and-trade extension failed.
On Tuesday, after the Legislature approved Assembly Bill 398 extending cap and trade through 2030, the allowances were selling for above $15.
If the ascent continues, California’s next cap-and-trade auction in August, at which carbon allowances will be bought and sold like so many pork belly futures, could provide a windfall to the state.
Source: The Sacramento Bee