Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
$2.2B in cap-and-trade funds begins flowing, boosting rail, housing, clean cars
California is starting to dole out nearly $2.2 billion generated by its cap-and-trade program to cut carbon emissions, allocating funds to hundreds of projects. Winners include regional rail, electric car rebates and rooftop solar for low-income residents.
Revenue from auctions of pollution permits under the system has bolstered the state's budget. A database compiled by ClimateWire shows for the first time precisely where funds have been directed. It reveals that more than $1.4 billion has been pledged to more than 350 recipients.
The biggest beneficiary is the state's high-speed rail line, which so far has reaped $750 million. Transit agencies in the San Francisco and greater Los Angeles regions each garnered $41 million. A reclamation district in Sacramento County received $10.4 million to build wetlands. Other recipients include cities, water districts, affordable home developers, trash companies, environmental groups, schools, farms and individuals.
There's money for reduced bus fares for Mendocino College students, for bicycle racks in Los Angeles, for a trash-composting operation in Fresno County, and to plant more trees in urban areas.
Big business is getting an indirect financial boost. Some agencies and groups on tap to get funds have hired companies to perform the approved work. Other recipients have put the grants toward ongoing projects with existing contracts. Corporate winners include Siemens, solar company SunPower Corp., locomotive builder Electro-Motive Diesel Inc. (EMD), and construction joint ventures Tutor Perini/Zachry/Parsons and Dragados/Flatiron.
"We're spending it in accordance with an investment plan that I think has a very good mix of long-term and short-term projects, that has geographical balance," Mary Nichols, chairwoman of the state's Air Resources Board (ARB), said in an interview. The state's plan will demonstrate "that cap-and-trade revenue can be used to address issues that not only cause our current greenhouse gas emissions ... but also have other multiple social benefits, as well."
The Golden State under its economywide trading system auctions pollution permits to businesses that need them to cover high greenhouse gas emissions. Those started at $10 a carbon ton and now run about $12. Sales of those have reaped nearly $2.2 billion through May, not including the portion that is controlled by the Public Utilities Commission and returned to utility ratepayers.
California wants to shrink greenhouse gas emissions 40 percent below 1990 levels by 2030. Spending cap-and-trade proceeds to help achieve that goal is one part of the state's broad approach, Nichols emphasized.
"We never said that the money from the cap and trade is going to be adequate to meet our 2030 goals," Nichols said. "It's a piece of the puzzle. But it's also designed to illustrate things that can be done that could lead to further investments" from cities, counties or private companies.
Under a deal Gov. Jerry Brown (D) made last year with the Legislature, 60 percent of cap-and-trade money is continuously dedicated to specific categories, including the bullet train, affordable housing near transit, intercity rail programs and low-carbon transit operations. The Legislature gets to decide how to spend the rest of the auction proceeds.
http://www.eenews.net/stories/1060023868
Cap and trade is nothing more than a tax that funds social programs and a political mechanism to giveaway taxpayer cash to cronies. The crying shame is the statement that cap and trade is not adequate to meet the goal of greenhouse gas reduction. Beware of a solution that is based upon a tax; it is all about the free money to spend and nothing about solving a problem.
California is starting to dole out nearly $2.2 billion generated by its cap-and-trade program to cut carbon emissions, allocating funds to hundreds of projects. Winners include regional rail, electric car rebates and rooftop solar for low-income residents.
Revenue from auctions of pollution permits under the system has bolstered the state's budget. A database compiled by ClimateWire shows for the first time precisely where funds have been directed. It reveals that more than $1.4 billion has been pledged to more than 350 recipients.
The biggest beneficiary is the state's high-speed rail line, which so far has reaped $750 million. Transit agencies in the San Francisco and greater Los Angeles regions each garnered $41 million. A reclamation district in Sacramento County received $10.4 million to build wetlands. Other recipients include cities, water districts, affordable home developers, trash companies, environmental groups, schools, farms and individuals.
There's money for reduced bus fares for Mendocino College students, for bicycle racks in Los Angeles, for a trash-composting operation in Fresno County, and to plant more trees in urban areas.
Big business is getting an indirect financial boost. Some agencies and groups on tap to get funds have hired companies to perform the approved work. Other recipients have put the grants toward ongoing projects with existing contracts. Corporate winners include Siemens, solar company SunPower Corp., locomotive builder Electro-Motive Diesel Inc. (EMD), and construction joint ventures Tutor Perini/Zachry/Parsons and Dragados/Flatiron.
"We're spending it in accordance with an investment plan that I think has a very good mix of long-term and short-term projects, that has geographical balance," Mary Nichols, chairwoman of the state's Air Resources Board (ARB), said in an interview. The state's plan will demonstrate "that cap-and-trade revenue can be used to address issues that not only cause our current greenhouse gas emissions ... but also have other multiple social benefits, as well."
The Golden State under its economywide trading system auctions pollution permits to businesses that need them to cover high greenhouse gas emissions. Those started at $10 a carbon ton and now run about $12. Sales of those have reaped nearly $2.2 billion through May, not including the portion that is controlled by the Public Utilities Commission and returned to utility ratepayers.
California wants to shrink greenhouse gas emissions 40 percent below 1990 levels by 2030. Spending cap-and-trade proceeds to help achieve that goal is one part of the state's broad approach, Nichols emphasized.
"We never said that the money from the cap and trade is going to be adequate to meet our 2030 goals," Nichols said. "It's a piece of the puzzle. But it's also designed to illustrate things that can be done that could lead to further investments" from cities, counties or private companies.
Under a deal Gov. Jerry Brown (D) made last year with the Legislature, 60 percent of cap-and-trade money is continuously dedicated to specific categories, including the bullet train, affordable housing near transit, intercity rail programs and low-carbon transit operations. The Legislature gets to decide how to spend the rest of the auction proceeds.
http://www.eenews.net/stories/1060023868
Cap and trade is nothing more than a tax that funds social programs and a political mechanism to giveaway taxpayer cash to cronies. The crying shame is the statement that cap and trade is not adequate to meet the goal of greenhouse gas reduction. Beware of a solution that is based upon a tax; it is all about the free money to spend and nothing about solving a problem.