California Proving What We All Suspected: AGW Laws Are Nothing More Than Vehicles For The Government To Soak Up More Of Your Money
Behold, the AGW Slush Fund in action:
California to Use Revenue from Carbon Auctions to Reduce Huge Fund Deficit
By Gary Hunt – OilPrice.com
And you thought the California Global Warming Solutions Act (AB32) was all about limiting greenhouse gas emissions, didn’t you? Think again.
There is a brewing fight in Sacramento over how to spend the gold expected to start pouring in when the Golden State starts its carbon cap and trade program. The original intent of AB32 was to use the proceeds from the carbon permit auctions to invest in technologies and programs that reduce greenhouse gas emissions. Makes sense, right?
But the law was passed in the boom times of 2006. Today six years later as the first carbon cap auction is being readied for later this year, California has a $16 billion general fund deficit and more than a few pet projects are going begging for money.
The only way California is going to dig itself out of this fiscal hole is by winning the lottery.
California’s mega-millions winning ticket is Governor Brown’s 2012-2013 State Budget proposal to take 80% of the carbon tax revenue or about $500 million per year to reduce the budget deficit for the coming two years. The quarterly carbon credit auctions are expected to produce $660 million to $3 billion per year. The Governor’s budget assumes California will net $1 billion from such auctions to start. The $500 million of revenue take assumed in the first year proposed budget will be used to offset existing General Fund costs for current emissions regulation activities, and the remaining revenues will be used on new programs to reduce emissions.
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