Governor signs California carbon bills

Governor Jerry Brown signed two bills addressing how California will use the revenue generated from the state’s carbon allowance auctions.

An account will be created to hold the auction revenue as California’s Department of Finance and the Air Resources Board develop a spending plan, expected to be released next year.

The first auction will take place on November 14, when over 21 million California carbon allowances (CCAs) will be sold.

California carbon allowances were trading at $15.20 at the close of last week.

The sale of CCAs is expected to produce over $1 billion in revenue for 2013 that will be invested in programs that focus on reducing emissions in California.

Governor Brown signed an additional bill stipulating that 25 percent of the auction proceeds be put toward programs benefiting communities that suffer from the worst air quality.