Senator Bob Wieckowski has introduced a new cap-and-trade bill in California aiming to further the state’s goal to reduce greenhouse gas emission levels by 40% by 2030 in comparison to 1990 levels.
The cap-and-trade program outlined in SB 775 gradually raises the price that companies, private utilities, and other groups must pay to receive allowances on carbon emissions. The bill would also establish a “price collar” that sets both a floor and ceiling for the price of a metric ton of carbon dioxide. The majority of revenue from the proposed program would go directly to California citizens in the form of a “climate dividend,” while the remainder would be dedicated to a separate infrastructure program and the California Climate and Clean Energy Research Fund.
For more information on state-level carbon pricing initiatives, visit NCEL’s resource page on carbon pricing.