Government Energy Policy, Business and Technology

California nets $860 million from carbon auction

AP: SACRAMENTO, Calif. (AP) — California will collect $860 million from auctioning carbon-emissions permits after the allowances sold out at a record price for the second straight quarter, according to state data released Tuesday.

Auction results released by the California Air Resources Board showed that demand remains strong for pollution permits since California lawmakers renewed the state’s cap-and-trade program in July. The program requires polluters to obtain a permit for each ton of greenhouse gases they release. The number of available permits declines each year.

Auction proceeds pay for a variety of environmental, transportation and other projects including high-speed rail and clean-vehicle subsidies.

Permits sold for $15.06 for current emissions, the highest price ever. That’s the nearly $1.50 above the auction floor and up from $14.75 in August. Permits for emissions in 2020 and beyond sold for $14.76 in last week’s auction.

Lawmakers voted in July to reauthorize the cap-and-trade program through 2030. Before that demand for permits plummeted as businesses waited to see if the program would continue.

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