Big news from the Sunshine State this week: the legislature approved the first state-scale cap-and-trade program in US History. Pure Power offers loud kudos to the Schwarzennegger Administration for this achievement, along with all of the accomplishments in its visionary environmental program.
Cap-and-Trade is a triple bottom line initiative, providing Financial, Social and Environmental benefits in California, while encouraging the use of renewables such as Mobile Solar Power Systems in fields such as Entertainment, Construction, Telecommunications, Agriculture, and any business that uses off-grid power in our state.
Here’s how it works (according to an article in Fast Company:
“At first, California won’t restrict emissions, instead giving companies so-called “allowances” to cover their carbon input. Over time, the state will reduce allowances, forcing companies to slash emissions. If companies want to emit more than their allowance, they can either trade for carbon credits with other companies or support select sustainable projects (such as preserving woodlands in a sensitive area).
A floor price for allowances–$10 per metric ton of carbon dioxide–will also be added to the carbon market. By 2020, the estimated 2.7 billion allowances on the market will go for $15 to $60 per metric ton of CO2 by 2020, according to the New York Times
As for jobs:
“The economic impact on the state will be minimal, according to a study from Next 10, a nonpartisan organization that funds research for complex California quality-of-life issues. Next 10 explains:
115,000 jobs by the year 2020 result from the 100 percent auction scenario in which revenues are returned to Californians through dividends, while 109,000 jobs are produced by 2020 in the 100 percent auction scenario in which resulting revenues are returned to Californians through reductions in personal tax rates”