Extending California’s cap-and-trade program would firmly limit climate pollution

(SACRAMENTO – January 10, 2017) Governor Jerry Brown asked state lawmakers, in the 2017 budget released today, to extend California’s cap-and-trade program beyond 2020. California’s cap-and-trade program, a central tool in meeting the state’s ambitious climate goals, places a firm limit on carbon pollution, and provides flexibility to businesses on how to comply cost-effectively. The governor proposed an “urgency vote” to confirm the California Air Resources Board’s authority to hold carbon auctions beyond 2020 by securing a two-thirds vote in the state Senate and Assembly. The California Court of Appeal in Sacramento will hear oral arguments January 24 on the California Chamber of Commerce’s legal challenge to the California carbon auctions.

“Over two-thirds of Californians support ambitious climate action. California’s pioneering cap-and-trade program is a cornerstone of our state’s ambitious plan to reduce carbon pollution and drive investment in clean energy. The program’s investment of auction proceeds in local communities furthers the objectives of reducing pollution in an equitable manner. We urge lawmakers to seize this opportunity to weigh in on how to best extend California’s cap-and-trade program past 2020.”

• Quentin Foster, Director, California Climate and Energy

“We are confident in the legal argument we are making before California courts about California’s cap-and-trade design. However, the Legislature has a chance to act definitively to put these obstructionist legal challenges to rest by passing the proposed legislation with a two-thirds vote. With cap and trade as a cornerstone of California’s ambitious climate policy, California’s emissions are declining and the economy is thriving.”

• Erica Morehouse, Senior Attorney