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It indirectly affects consumers by raising prices and is designed to raise billions of dollars that Capitol politicians can spend without directly taxing their constituents. The current version of cap and trade has been plagued by political and legal uncertainty, it runs out in 2020, and recent auctions have generated almost no money for the long list of projects and programs that Gov. Jerry Brown and legislators want. Brown and legislative leaders want to renew it to help the state achieve a 40 percent reduction in the states carbon footprint from 1990 levels and also, of course, to jump-start the flow of revenue. Although the two legislative houses are both controlled by Browns fellow Democrats, there is a potentially serious split in their approaches. Assembly leaders appear to prefer simply extend the authority of the Air Resources Board to establish some kind of emission trading system beyond 2020. Senate President Pro Tem Kevin de Leon says the current program, designed and implemented by the Air Resources Board, is overly complex and allows speculators to dominate the market. A Senate plan unveiled last week would limit trading in emission allowances to narrow bands of prices, ban carryover of allowances from one year to the next, and raise those prices, now $13.57 per metric ton, to eventually well over $100, generating more than $30 billion a year.
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