A key committee has recommended a novel approach to distributing revenue from a forthcoming cap & trade scheme, the key strategy to reduce greenhouse gas emissions by the CA Air Resources Board in order to meet the reductions mandated in AB 32.
While it still hasn't been determined whether the 'allowances' to emit greenhouse gases will be given or auctioned to industry, the idea has surfaced much of the revenue from the carbon trading program be given in some form to residents, somewhat similar to Alaska's Permanent Fund for distributing oil and gas royalties for energy extraction.
"Under the proposal, described by the committee as a 'household friendly' approach, Californians would receive 75 percent of the proceeds from emissions auctions, either in tax decreases or checks sent directly to residents.
The proposal was one of several released on Monday (1/11) in a final report from the 16-member Economic and Allocation Advisory Committee, which is charged with advising the state's Air Resources Board on a cap-and-trade system."
From WSJ: California Ties Cash to Energy:
"California might start paying people to cut their energy use.
The panel argues that higher prices will drive consumers to use less of the fossil fuels that produce greenhouse gases.
At the same time, state officials hope to compensate for the pain inflicted on households by higher energy prices. They are considering using most of the money collected from the new fees to reduce taxes or pay annual dividends to consumers -- regardless of their energy spending. Consumers would benefit the most financially if they dramatically reduced their fuel bills."
Thanks to Jenesse Miller
FULL STORY: California Panel Considers Money From Climate Rule

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