California passes $1 billion carbon revenue bill
California legislators took another step toward launching North America’s largest carbon market, passing a bill that creates a Greenhouse Gas Reduction Account that will handle over $1 billion in additional state revenue from the sale of carbon allowances.
However debate is still ongoing about how these funds should be used.
Some insist that the revenue should be spent on plugging California’s substantial budget deficit or offered as a rebate to electric customers to offset the potential rise in energy prices.
Others maintain that the funds should be used specifically for clean energy projects that will stimulate the state’s growing green economy.
Now that the bill has been approved by the state Assembly, it will be passed along to the state Senate and eventually on to Governor Jerry Brown.