California’s greenhouse gas regulators may ease the pain for companies under an evolving cap-and-trade plan.
A staff report issued today by the state’s Air Resources Board provides the first details of how a state-run cap-and-trade program would work. It advocates starting out by having companies pay for one quarter of their permits to emit greenhouse gases. Environmental groups had been pressing for a “100% auction,” making industry pay for all allowances. The report pegs an initial “reserve” price at $10 per ton of carbon. The reserve price is intended to be a floor, if the permit trading market doesn’t support a higher price.