Latest Cap and Trade Auction Returns Disappointing Results
March 2, 2107
Last week, the California Air Resources Board offered the first 2017 auction of greenhouse gas emissions on Wednesday. The results were lackluster: final revenue numbers were not yet available, but the total will likely be around $8 million with only about 16 percent of allowances sold. The next auction will be held in May.
CSAC supports additional cap and trade resources to help reduce greenhouse gas emissions at the local level. The Governor’s January budget proposal includes a $2.155 billion appropriation of cap and trade revenues, but allocation amounts are general and will only be allocated after a two-thirds vote to extend the authorization of the program. It is unclear how the recent performance of cap and trade auctions might impact legislation.