Cap and trade lawsuit seeks to eliminate auction system
Updated On: Jul 23 2013 08:51:04 PM CDT
California’s Cap and Trade Program is causing waves. The program charges industries for their green house gas emissions by way of credits which allow companies to produce one ton of carbon dioxide per credit.
If the company exceeds its given credits, it can buy more from other companies or in a state-run auction. According to the Pacific Legal Voundation (PLF), the auction is what is causing problems. They say that the auction system is an unconstitutional tax on the people of California. And PLF is suing the State to get rid of the auction as it currently exists.
The lawsuit will not change the cap and trade program, but will get rid of the auction system.
The Cap and Trade program has only been in place for a few months, but it has already generated over half a billion dollars, most of which has been put into the general fund to help balance the budget.
The program is designed to help encourage clean energy development and 25 percent of the revenue is required to go toward clean energy investment.
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