California Governor Jerry Brown announced Tuesday evening that he had reached a deal with both chambers of the state legislature to extend the Golden State’s “cap-and-trade” program beyond its original expiration date in 2020.
Brown, Senate President pro Tem Kevin de León (D-Los Angeles) and Assembly Speaker Anthony Rendon (D-Lakewood) announced “a legislative package that will launch a landmark program to measure and combat air pollution at the neighborhood level – in communities most impacted – and extend and improve the state’s world-leading cap-and-trade program to ensure California continues to meet its ambitious climate change goals,” according to a statement released on the governor’s website.
The statement adds that the deal “includes AB 617 by Assemblymembers Cristina Garcia (D-Bell Gardens), Eduardo Garcia (D-Coachella) and Miguel Santiago (D-Los Angeles) and AB 398 by Assemblymember Miguel Santiago (D-Los Angeles) and is the product of weeks of discussions between the administration and legislative leaders with Republican and Democratic legislators, environmental justice advocates, environmental groups, utilities, industry and labor representatives, economists, agricultural and business organizations, faith leaders and local government officials.”
The cap-and-trade system sets an upper limit for carbon dioxide emissions, and then issues emissions permits that can be bought and sold by producers. The system applies an effective tax on emissions (one that some businesses would prefer to leave the state to avoid). Companies that are more energy-efficient can sell their permits for profit — a model that Tesla, for example, has used to pad its bottom line.
The legislation will have to proceed in the absence of former Assemblyman Jimmy Gomez, who will be sworn into Congress on Tuesday — more than a month after winning a special election to replace Attorney General Xavier Becerra in the 34th congressional district. Gomez had delayed the ceremony partly to make his vote available for a cap-and-trade extension deal.
The deal, as noted by Bay Area public radio station KQED, will include provisions to allow local communities to monitor air quality and industrial air pollution, without allowing them to regulate carbon dioxide emissions. Climate change activists often confuse the two phenomena, though one has little to do with the other: carbon dioxide is an odorless, colorless gas that is not harmful.
KQED adds that the deal also ends “a fire prevention fee largely paid by residents living in rural, Republican areas of the state.” That could indicate that Democrats struck an agreement with Republicans to vote for the bills.
Without Gomez, the Democrats will not have the two-thirds majority required to renew cap-and-trade without facing legal challenges. But with Republican votes, that obstacle will disappear.
Following last year’s passage of Proposition 54, which requires bills to be on public display for 72 hours before a vote, that could mean a vote on cap-and-trade could come as early as Thursday.
Joel B. Pollak is Senior Editor-at-Large at Breitbart News. He was named one of the “most influential” people in news media in 2016. He is the co-author of How Trump Won: The Inside Story of a Revolution, is available from Regnery. Follow him on Twitter at @joelpollak.
Correction: an earlier version of this story indicated that a two-thirds majority would have been needed to avoid a referendum.