AB 32

New Developments for Cap-and-Trade in California

There’s big news for California’s cap-and-trade program to control the state’s greenhouse gas emissions on two fronts this week.  Cara alluded to the first in her post this week about California Democrats gaining a supermajority in both houses of the legislature after Tuesday’s election.  The legislative development is important because  the state legislature can probably …

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The trouble with resource shuffling

Federal Energy Regulatory Commission (FERC) Chairman Jon Wellinghoff recently voiced concern that California’s cap-and-trade program could lead to unforeseen consequences that would upset energy markets. He was speaking about resource shuffling, and echoing a letter his fellow Commissioner sent to the California Air Resources Board (CARB) in August. What is resource shuffling? According to CARB, …

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Californians and the Environment: PPIC’s New Survey Results

The Public Policy Institute of California this week released the results of its 12th annual “Californians and the Environment” survey.  PPIC, a non-partisan think tank, always seems to be generating thought-provoking and cutting-edge scholarship focusing on the nation-state of California. Its latest environmental survey, based on recent polling of 2500 Californians, continues that tradition. The …

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California Court of Appeal Upholds AB 32 Scoping Plan for Greenhouse Gas Reduction

Today, the California Court of Appeal  rejected an appeal by environmental justice advocates seeking to scuttle the California Air Resources Board’s AB 32 Scoping Plan.  EJ advocates objected to the Scoping Plan’s adoption of a cap-and-trade program to achieve some of the greenhouse gas reductions required under the landmark California law AB 32.  Their primary …

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Carbon Auctions & Prop 13

California is planning to auction some of the carbon allowances in its new cap-and-trade system.  There’s an interesting question about whether  the auctions should be considered a “tax” under state law, which may turn in part on what the money is used for.  If the auctions are considered a tax, they would run into trouble …

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When green isn’t greener — Part 2

In a recent commentary, I suggested that the Pacific Gas & Electric Company’s new Green Option, pursuant to which consumers can subscribe to 100% renewable electricity, would not result in reduced greenhouse gas emissions. That is because under California’s cap and trade program, the utility can sell any unneeded carbon allowance for someone else to …

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When a green option doesn’t make things greener…

California’s largest electric utility, the Pacific Gas & Electric Company (PG&E), has proposed to offer a Green Option Program through which individual customers could choose to pay a little extra for power that is 100% renewable.  In a move clearly designed to discourage local governments from starting their own green power programs, PG&E displays endorsement …

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How California could surpass $1 billion in cap-and-trade auction revenue by 2013

Last week I did a series of posts examining the amount and  potential price ranges for allowances in California’s upcoming cap-and-trade auctions for greenhouse gas emissions (GHGs). Knowing the estimated auction clearing price plus the estimated number of allowances to be sold at auction tells us the estimated revenue from that auction. Several estimates of …

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Allowance distribution in California’s cap-and-trade program (Part II: Industry)

Yesterday I developed a basic overview of the different categories of allowances in California’s GHG trading program. As promised, this post considers the number of allowances that California will freely give to specific industries. Why do we care about industry allowances? First, allowances have value and the Air Resources Board (CARB) has chosen to give …

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Allowance distribution in California’s cap-and-trade program (Part I)

Yesterday, I described California’s GHG cap-and-trade auction and the likely constraints on the auction clearing price. Today I want to switch gears to the allowance distribution. As summarized in our recent paper on California’s auction revenue, once you know the number of allowances available at auction and the auction clearing price, you can estimate revenue. …

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