California Regulators Approve $4 Billion in Free Carbon Permits for Oil Companies
Updated
Updated · CalMatters · May 30
California Regulators Approve $4 Billion in Free Carbon Permits for Oil Companies
3 articles · Updated · CalMatters · May 30
Summary
Ten California Air Resources Board members approved a cap-and-invest overhaul that could hand industry up to $4 billion in free pollution permits, with half reserved for the fossil fuel sector.
The new pool is capped at 118.3 million permits—the same volume regulators say must be retired for California to meet its 2030 climate target—prompting environmentalists to warn the cuts could be wiped out.
State officials said the permits would go only to companies funding decarbonization projects and could be clawed back, arguing the plan is needed to keep refineries operating as California gasoline tops $6 a gallon.
The overhaul could cut quarterly auction revenue for climate programs from about $4 billion a year to roughly $2 billion, setting up a budget fight over housing, transit, drinking water and pollution monitoring.
The vote followed heavy oil-industry lobbying and pressure from Gov. Gavin Newsom's administration, underscoring California's widening clash between affordability concerns and its emissions cap.