A Cap and Trade Revenue Bill was recently approved by the lawmakers in the state of California.
The assembly in California approved the bill by a margin of 47 to 26. The bill is labeled as AB 1532 and was written by John Perez. The bill focuses on utilizing revenue that is ultimately generated by the carbon market.
The Cap and Trade program will start the very first day of 2013. Carbon allowance auctions will also be held during November 14th. Many insiders in Capitol Hill predict that the billions of dollars in revenue from the auction would be of great importance to the legislature in Sacramento.
Transportation fuels are expected to be included in the cap and trade program in 2015 which will lead to an increase in auction revenue.
There are 4 particular categories which will serve as expenditures for revenue:
- Energy that is efficient and renewable
- Transportation that is low in carbon
- Protecting natural resources
- Development and Research
- Encourage climate change planning
The newly approved bill will lead towards the creation of the “Greenhouse Gas Reduction Account” which will lead to the efficient management of the climate change laws. The Air Resources Board must also report the status every December.
An Energy Adviser whose name is Panama Bartholomy recently spoke at a carbon conference and pinpointed that the revenue bill will be a combination of several others. Speaker John Perez elaborates on how California is known for combating climate change and is proud of the fact that California established the trade and cap as greenhouse gas is reduced. Speaker Perez finally states that the passage of the bill will lead to a sustainable future for the state of California. The bill still needs to go through the Senate but it is likely to pass.
Overall, the passage of the bill is good news as sustainable policies are implemented in the state of California.