cap-and-trade auction

Auctioning the Upzone: A New Strategy for Inducing Local-Government Compliance with State Housing Policies

New White Paper by U.C. Davis Law Professors Recommends Market-Based Tool to Incentivize Intensified Urban Development in California and Beyond

(Note: the following post was co-authored by U.C. Davis School of Law Professors Chris Elmendorf and Darien Shanske; the white paper discussed in the post is their work product.)  California’s housing policies–a topic that for years received precious little attention from state officials–has suddenly become the Golden State’s hottest political and policy issue.  The California Legislature passed …


Breaking News: California Supreme Court Refuses To Hear Appeal On Industry Challenge To Cap-And-Trade Auction

Industry once again loses leverage over shaping the program post 2020

The California Chamber of Commerce has just lost its case against the state’s cap-and-trade auction, with the news from the Los Angeles Times that the California Supreme Court has refused to hear an appeal from the state appellate court. This means the auction mechanism in the cap-and-trade program is valid at least through 2020. As …


California Sued Again Over Cap-and-Trade Program

Pacific Legal Foundation filed suit today against the state’s Air Resources Board on the grounds that the auction of allowances under California’s cap-and-trade program constitutes an unconstitutional tax.  In the new suit, Morning Star Packing Company v. California Air Resources Board, PLF argues that a) the auctioning of revenues constitute a tax which b) requires …


California raises almost $300 million in its first cap-and-trade auction

The California Air Resources Board (CARB) released the results from its first auction of greenhouse gas (GHG) allowances today.  It sold all of the approximately 23 million current allowances (2013 vintage) at $10.09.  It sold 14% of the approximately 39.5 million advance allowances (2015 vintage) at $10.00. As I discussed last week, the unsold advance …


What happens if not all allowances are sold at the first cap-and-trade auction?

California held its first cap-and-trade auction for greenhouse gas (GHG) allowances yesterday.  The California Air Resources Board (CARB) will announce the results from that auction on Monday, Nov. 19.  What happens if not all the allowances are purchased at the auction? The short answer is that unsold allowances will be withheld from the market and …


Why California’s cap-and-trade auction is not a tax

Yesterday, Ann and Cara gave their initial reactions to the California Chamber of Commerce lawsuit against California’s cap-and-trade auction.  The main thrust of that lawsuit is that the auction (that happens today) is an unconstitutional tax because, according to the lawsuit, AB 32 gave the California Air Resources Board (CARB) no authority to withhold and …


Auction prices in California’s cap-and-trade program

This week, the Emmett Center released a new paper on the potential legal constraints on revenue generated from California’s upcoming greenhouse gas (GHG) cap-and-trade auction. In that paper, we provide a general overview of the cap-and-trade auction mechanism and discuss the potential revenue raised. I would like to expand on that discussion in a series …