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 ...
They’ll get less than the projections as more companies flee California.
All I want to know is how do I get in on this SCAM and how much money can I make?
Consumers shafted again.
People need to get over this notion that actions have no cost.
Emphasis on "could".
And even if it does, the idiots in Sacramento and the thousands of bureaucracies in this state will just spend 10 times more than whatever this brings in so we will have accomplished nothing except driving more businesses out of the state.
Is this groundhog day? I thought cap and trade was dead.
Such as the train to nowhere.
Are these progressives insane? Really?
They're acting like this is some windfall of $$$ raining down like manna from heaven. What they fail to grasp is that the money comes from someplace, in this case oil refineries. Now these refineries have that much less money in the till to upgrade equipment (jobs) , expand production (jobs and lower gas prices) and hire more people.
Maybe I'm missing something, but gov Moonbeam and the thieves in Sacramento are acting just like hungry castaways on an island with no food, who suddenly start gnawing on their foot and think they've been given an endless feast.
Funny that California consumers think some one else will pay this money.
Idiots have a powerful media and education system working to please them, smart people don’t.
It is but Kalifornia wants to be first state to jump off the cliff.
“Carbon Credits” of the Global Warming religion are the same as “Indulgence Papers” of the Catholic Church during the middle ages... The goal is to scam the stupid and take their money telling them that you have been saved and in the meanwhile the priests of the Global Warming religion are getting filthy rich...Global warming is the biggest hoax in history of mankind...
Another extra ambitious plan by California to drive businesses from that state.
For the companies and consumers left behind, from where do you suppose these companies will get the cash to pay for the pollution credits?
Bwaaa ha ha ha haaaaaaa!!!
As if Gov. Moonbeam and his Commie Pinko friends give a damn about laws and rules and all that crap.
Oh, San Jose Murky News, you crack me up.
You would think they would look at the epic fail of cap and trade in Europe and realize they are living in Wonderland. California already has tough emission laws. There is no ‘low hanging fruit’ left for the gov fleece. Those who can move will, others will just leave.
“Maybe I’m missing something, but gov Moonbeam and the thieves in Sacramento are acting just like hungry castaways on an island with no food, who suddenly start gnawing on their foot and think they’ve been given an endless feast.”
Well said, but I’ve always preferred the poignant image of an old toothless dog, chewing on a dry bone until its gums bleed, then savoring the delicious treat it has in its mouth.
Among others, The power companies should just shut down and turn off the lights. Something tells me that there will be a lot loss jobs in California in a few years.
According to Tribune. BLAME IT ON BUSH!!!!
Higher gas prices cause less public anger this time
Several factors are behind the relative complacency now compared with the price surge of 2008, analysts say.
..the tax payers of the US....anyone else think this is a payoff from the Odungo administration?...notice the word "could" get paid. This sounds so hinky
As if "strict constraints" ever stopped them, ever.
$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.