California nets $860 million from carbon auction

Photo Credit: Getty Images

SACRAMENTO, Calif. (AP) — California permits to emit carbon sold out for the second straight auction, generating about $860 million for the state.

Quarterly auction results released Tuesday show demand remains strong for pollution permits since California lawmakers renewed the state's cap-and-trade program. The program requires polluters to obtain a permit to release greenhouse gases.

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.

Permits for emissions in 2020 and beyond sold for $14.76.

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.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Sponsored Content

Sponsored Content