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Mark Standriff of Frontline Securities breaks down the state’s pollution-permit auction.
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Boy I shall wait whether they rolled out and you cap and trade plan would -- pollution permit sellout.
Businesses bought all 23 million pundits and around ten bought dollars each.
Each time it allows companies to release one ton of -- and into the -- yeah.
This basically a test case -- the rest of the nation will follow.
Joining us now is mom Sandra from a Frontline strategist what -- think mock.
I've raised a lot of money for the government that -- in Sacramento do you think other states are gonna follow suit.
Well none of them have so far and frankly that it took a take a look at the real numbers on this because even though they raised a little bit more than 230 million dollars.
Of the vast majority of that money raised in the carbon tax auction they had last week is gonna go to the utilities and their rate -- only 56 million dollars actually goes to the California state budget which of course this whole auction was -- supposedly going to be helped to balance that Jerry Brown's budget and that I guess the folks at the legislative analyst's office here are a little bit under well.
But -- OK how about in the future.
I believe the price of these things that permits goes up in the future is that correct.
Well it goes away when when all of the carbon tax credits are sold out meaning that that the numbers reduced year by year so if you don't buy it early you might be left it you know paying a little bit -- -- part of the problem here's Stuart.
Is -- fact that you know California businesses if if you're not going to expand because of all of the restrictions in the negative you know business environment here.
What's the point of buying more tax credits or even worse if you're leaving the state you can't transfer those credits to and every state that hasn't enacted.
These carbon tax credit so.
You know I think that that this environmental windfall that everybody is expecting from these auctions just simply isn't gonna happen what's gonna happen to the average Californians will be paying more for their fuel -- for that electricity is that's what's gonna happen to him well I I think it it it only follows suit and and one of the things that's not being discussed and in all of this is -- businesses that are targeted for these carbon -- emissions you know AB 32 was passed a couple of years ago.
To make sure that California reduces their carbon emissions to 1990 standards by the year twenty -- Well if -- the businesses can't do that the ones that are affected most of the ones that frankly.
Employ the most blue collar workers that has a direct effect on California's middle class do you think it'll make any difference to global warming one well the other.
Well -- you know the interesting thing about the that tax credits that were sold here -- the the air resources board originally was supposed to be a market driven system provider.
To the they set the emissions standards.
If businesses can't comply that by the carbon credits if they're more efficient they can sell them to whether companies but what they did was went over and above -- AB 32 really calls for.
And they actually established itself with the opportunity to require companies to pay for the ability.
To emit carbon that's what this auction was all about but none of it reduces the carbon emissions standards one I -- -- not a single bit.
Only in California you lucky guy you -- Marx founder of thanks for joining us as always thank you you -- thanks a gone.
