allowance auctions

Why Was the Lawsuit Challenging California’s Cap-and-Trade Auction Filed Just One Day Before the Auction?

As Ann posted earlier today, the California Chamber of Commerce has filed a petition for writ of mandate in a California superior court, alleging that the auction of allowances to emit carbon dioxide scheduled for tomorrow constitutes an illegal tax and is not authorized by the California law AB 32.  AB 32 requires the state …


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 …