Skip to comments.Windfall of cash could hit state treasury from global warming program
Posted on 04/08/2012 7:48:38 AM PDT by SmithL
For the past 10 years, California has struggled with huge budget deficits and wrenching cuts. Suddenly, however, the state is poised to raise billions from an unusual new source: the proceeds from its landmark global warming law.
The windfall could come as soon as this fall, when state officials are set to begin auctioning off pollution credits to oil refineries, power plants and other major polluters as part of a new "cap-and-trade" system.
The amounts are potentially enormous: from $1 billion to $3 billion a year in 2012 and 2013, jumping to as high as $14 billion a year by 2015, according to the nonpartisan state Legislative Analyst's Office. By comparison, the state's current budget deficit is $9 billion.
But like thirsty castaways on an island surrounded by ocean water they can't drink, Gov. Jerry Brown and state legislators face strict constraints on how they can spend the money. More than 30 years of court rulings and ballot measures -- dating to Proposition 13 in 1978 -- limit its use, probably only to projects that reduce greenhouse gas emissions.
To add another hurdle, major business groups are preparing lawsuits, arguing that the state cannot collect the money at all.
Still, Brown and others in the Capitol are cautiously making plans. On Monday, the state's High-Speed Rail Authority slipped into a news release that the money would be used as "a backstop" that could save the struggling bullet-train project. And in a follow-up interview with this newspaper, Dan Richard, chairman of the rail authority, asserted that a large portion of the money could go to fund high-speed rail.
(Excerpt) Read more at mercurynews.com ...
Oh - that’s right. They’re calling it fees, so in Romney’s world it is not really a tax increase.
Wouldn't they just love to know they'll owe no royalties to Fannie Mae? A certain FReeper (me) filed a provisional patent application describing "natural process assets that transform the state of mobile commons such as air and water" more than eighteen months before Bartels' application date.
There, fixed it.
These leeches also told us the lottery would save education and balance the budget, and tobacco taxes would save health care and balance the budget.
Nothing has changed and they continue to spend 20-30% more then they take in in revenue.
I don’t blame the politicians as much as the morons in this state who keep electing them.
Exactly. As if all this $$ just appears from nowhere, like manna from Heaven. The consumer will pay the bill. Employers will pay the bill, which means fewer jobs and less tax revenue (when they decide to leave). Idiots all.
**$1-3 billion in new taxes on the consumers still paying their own power bills. These additional costs will be passed on to the consumers. They might as well just call it what it is - another tax increase.***
Liberals don’t get it. Corporations and big business don’t pay taxes, it is the consumer that pays all of it. All costs are passed on in the final price.
And these new taxes will go where all the other taxes have gone, down a RAT hole.
Thanks for posting the article.
“The windfall could come as soon as this fall, when state officials are set to begin auctioning off pollution credits to oil refineries, power plants and other major polluters as part of a new “cap-and-trade” system. “
And WHERE do the oil refineries, power plants and other major polluters get the money to pay for those ‘pollution credits’?
I hear they have a lot of cliffs.
You'll have to dumb this down for me just a bit.
Actually, a lot.
Those same leeches told us that if we hid underneath a WOOD DESK it would protect us from a nuclear fireball.
Windfall of cash?
Sounds more like a Ponzi scheme.
Well, with the exception of Obama qualifying for President.
My wife and I have good paying jobs in Silcon Valley, but we can’t wait to get out of this insane state. Not only will companies flee, people will too when their energy bills soar.
Ah, them Kalifornians are too smart by half.
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That would bring in trillions.
Couldn't charge Eric Holder's people, though. That would be racist.
I like the quote in the Mecury News, that states:’the funds will somehow be restrained to enviromental projects’ great lies if anyone accually believe the frauds in Sacremento; to think Arnold pass this offensive legislation(we should have known that if you marry a Kennedy you will always be liberal no matter what party affiliation). That prick not only fathered a bastard kid, got his murdering son’s pal sentence slashed in half, but put into motion, years of lawsuits, and counter lawsuits, in a time we cannot even afford to give free cell service to legislators. Progressives are anything but! That piece of garbage should be shipped back to Austria before he does any further damage——God, Califorians are so effing stupid, they voted for Brown again, what do you expect.
Bingo. California is getting exactly what it deserves. I just hope the rest of the country doesn't get stuck bailing it out.
Cap and trade. You can still pollute but will have to pay for the ability.
Yes, but they'll spend twice what they project.