6/17/12, "California to Use Revenue from Carbon Auctions to Reduce Huge Fund Deficit," oilprice.com, Gary Hunt
"And you thought the California Global Warming Solutions Act (AB32) was all about limiting greenhouse gas emissions, didn’t you?...
There is a brewing fight in Sacramento over how to spend the gold expected to start pouring in when the Golden State starts its carbon cap and trade program. The original intent of AB32 was to use the proceeds from the carbon permit auctions to invest in technologies and programs that reduce greenhouse gas emissions. Makes sense, right?
But the law was passed in the boom times of 2006. Today six years later as the first carbon cap auction is being readied for later this year, California has a $16 billion general fund deficit and more than a few pet projects are going begging for money. ...
Governor Brown has proposed tax increases on the wealthiest Californians on the November 2012 ballot....So what does this have to do with cap and trade revenue?
California’s mega-millions winning ticket is Governor Brown’s 2012-2013 State Budget proposal to take 80% of the carbon tax revenue or about $500 million per year to reduce the budget deficit for the coming two years. The quarterly carbon credit auctions are expected to produce $660 million to $3 billion per year. The Governor’s budget assumes California will net $1 billion from such auctions to start. The $500 million of revenue take assumed in the first year proposed budget will be used to offset existing General Fund costs for current emissions regulation activities, and the remaining revenues will be used on new programs to reduce emissions.
Environmental advocates—all Friends of Jerry—are screaming. They squeezed the members of the State Assembly and State Senate to each pass bills that restrict spending the cap and trade money. Those bills are now being considered in the opposite house and their reconciliation fate is uncertain. The Legislature is scheduled to adjourn sine die August 31, 2012 and if the bills are not approved in final form they die.
Meanwhile, the budget must be approved by June 15, 2012 but the Legislature has rarely met that goal. If a budget deal is approved that includes taking the $500 million in year one cap and trade revenue, it seems unlikely the Legislature will then pass the other spending restriction bills thus creating a half-billion hole in the budget they must then fill with other politically unacceptable cuts.
On the other hand the sleight of hand could get worse. The Cap and Trade revenue projections from first-year proceeds of the AB32 auctions range from $600 million to $1.8 billion in year one since many permits are being given away the first year. But if the cap and trade revenue comes in above the $660 million floor estimate the Governor’s budget leaves wiggle room with the 80% take to transfer even more than $500 million in year one and to extend it to subsequent years to balance the budget and fund
- those pet projects
- like the high speed rail project.
It's all out in the open now, everyone can quit pretending.
6/18/12, "Climate panel adopts controversial 'grey' evidence," NewScientist, Fred Pearce
The climate industry's alleged gold standard, Nobel Prize winning UN IPCC, has voted to accept 'grey literature' for its climate reports which are used to make US government policy. They say the reason is it's unfair to 'developing countries' otherwise.
Also, from now on the UN IPCC 30-person bureau will have geographic quotas: 5 from Africa, only 4 from "North America." I trust stooge US taxpayers will still get to pay 50% of UN IPCC bills.
- Sorry, I mean "North American" taxpayers. ed.
6/19/12, "IPCC Embraces Geographic Quotas," NoFrakkingConsensus
Ed. note: This is why there is no reason for the GOP to exist. Who in their right mind wouldn't do everything in his power to end the enslavement of American citizens to the openly criminal toilet, the UN? Democrats won't do it. If Republicans won't do it, why do they exist? Answer: no reason.