The cap-and-trade credits that the California government expected to sell for a hefty profit sank like a stone. When the California Resources Board held its first auction of the credits late last month, they projected an ultimate $1 billion profit.
Missed it bythatmuch. The legislative Analyst’s Office thinks that if the auctions in February and May are as enormously successful as the first one, the state should bring in –drum roll, please --$140 million.
But, environmentalists cry, this was supposed to work! The plan was to punish companies that polluted the air with greenhouse gases by forcing them either to buy credits or cut back production.
California will wind up 86% short of its goal. That’s too bad, because Governor Moonbeam wanted that money for the high-speed rail project he’s so keen on.
Now poor Californians will have to drive from Bakersfield to Fresno instead. And they will also have to suffer the slings and arrows of a state government that has raised utilities rates and taxed businesses out of the state. One study indicates there will be 262,000 less jobs in 202 because of the green-energy requirements foisted on industry. Businesses are being treated as if they were servants of the government.
Welcome to California. Land of the Prius, home of the slave.