Carbon prices–Set to KILL California economy/families/businesses

If you are staying in California be prepared for a government policy to skyrocket the cost of doing business in this Third World State.  The current price is $14.65.

As required by legislation signed by Gov. Jerry Brown in 2017 extending the state’s cap-and-trade program through 2030, the state Air Resources Board has proposed a new ceiling on the price of carbon credits, per ton, at auction. Until now, California has not set a price at the high end.

Regulators have proposed a ceiling of $61.25, which, if approved, would take effect in 2021. Major business groups and oil interests, including the California Chamber of Commerce and Western States Petroleum Association, told regulators that they risk imperiling California’s cap-and-trade program should it take effect and could deter other states from pursuing similar approaches.”

That is right—they want to increase the price by four times.  But, they say it will never happen.  Social Security started at 1%.  They wanted a maximum of 2%, but told it could never get that high—today it is closer to 15%.  Want to kill off our economy, this will do it.

tax sign

Carbon prices

By KEVIN YAMAMURA, Politico,  11/16/18

 

 

NOT MANY CEILING FANS: Powerful California business interests blasted state regulators Thursday for proposing a price on carbon emissions they believe is too high to support California’s cap-and-trade program — one of the most aggressive in the world, and the centerpiece of its plan to reduce heat-trapping emissions in the atmosphere, POLITICO’s Angela Hart reports.

As required by legislation signed by Gov. Jerry Brown in 2017 extending the state’s cap-and-trade program through 2030, the state Air Resources Board has proposed a new ceiling on the price of carbon credits, per ton, at auction. Until now, California has not set a price at the high end.

Regulators have proposed a ceiling of $61.25, which, if approved, would take effect in 2021. Major business groups and oil interests, including the California Chamber of Commerce and Western States Petroleum Association, told regulators that they risk imperiling California’s cap-and-trade program should it take effect and could deter other states from pursuing similar approaches.

“The system requires buy-in from all parties — not just government and environmental groups, but from the businesses and industries that will support and implement these regulations,” said Leah Silverthorn, a lobbyist for the California Chamber of Commerce. “Setting unreasonably high price ceilings … that causes spikes in pricing and trading and does not encourage participation by more moderate states.”

Regulators pushed back, arguing business and oil interests were blowing the long-term impact of the price ceiling out of proportion.

“This argument about the price ceiling is a little bit — I don’t want to say irrelevant, but maybe it is a little bit irrelevant,” said Air Resources Board Chairwoman Mary Nichols, noting the ceiling was a “worst-case” scenario. “Everything we know says it’s not going to happen.”

At present, the price per ton of carbon is around $14.65, according to agency spokesman Dave Clegern. That is expected to rise to $16.77 by 2021, when the final regulations will take effect. By 2030, when the current program sunsets, the price per ton is projected at $25.80 — far below the ceiling.

The ceiling is meant to give businesses some certainty in the market at the high end, regulators said. Nichols questioned the high-profile attack on the ceiling following nearly five hours of public testimony, mostly in opposition.

“I have a very strong sense that we’re not really being told the real reason behind the very, very strong opposition that clearly has been mounted by WSPA to this price ceiling,” Nichols said. “I don’t see it as an attack on cap-and-trade. … I have to think that there’s something that to them looks like it’s going to impact maybe the competitiveness of their California operations or … investments.”

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.