How will California spend its billions in carbon revenue?
Although California will not hold its first carbon allowance auction until August, policy makers are already debating how best to spend the $3 billion revenue expected from carbon sales this year alone.
The additional funding must be put toward emission reducing projects, but California has several to choose from.
One program would use the money to improve the state’s infrastructure. This would create jobs for the state’s construction industry while simultaneously building a more efficient transportation grid.
Other programs under consideration would protect natural resources and improve energy sustainability.
However California Governor Jerry Brown has insisted that a substantial portion of the revenue generated from carbon sales be returned to residents to offset the expected rise in energy prices.
It will be a very busy year for legislators as they determine the most effective way to spend the extra billions of dollars carbon sales will inject into the state’s budget.