The California Flap: February 20, 2013


California Cap and Trade

The California Legislature is in session.

Today’s schedule is here.

The California Assembly’s Daily File is here and the California State Senate’s is here.

An important deadline to remember:

  • February 22, 2013: Deadline to introduce bills.

Each member of the Assembly and State Senate are allowed to introduce up to 40 bills in this two year legislative session.

On to today’s California headlines:

  • Mistake in First California Carbon Auction Raises Questions About Secrecy – California’s cap-and-trade program to cut greenhouse gases resumed this week with its second auction of carbon allowances to industrial polluters. The market is being closely watched around the world, and billions of dollars are at stake. But some nagging questions are lingering from the first auction. The state’s first-ever carbon auction last November was a very exclusive online event, open only to bidders and regulators at the California Air Resources Board (CARB). Four days later, Mary Nichols, who heads the board, declared it a resounding success, saying the auction came off “without a hitch.”
  • Second cap and trade California auction needs big bucks – In a private and somewhat secret event on Tuesday, Gov. Jerry Brown’s proposed state budget inched a little more towards balance… or further towards a multi-million dollar hole created by what’s turned out to be relatively low demand for greenhouse gas pollution credits. It was the second of three initial auctions of carbon dioxide credits, and the first since November’s offering came up significantly short in revenues available to the state. Net proceeds won’t be revealed by the California Air Resources Board until Friday.  The first auction brought in $55.8 million, less than a third of the $200 million expected in the governor’s budget through the end of June.
  • We predicted there was no California tax ‘windfall’ – The bottom line is that people react to tax increases. When he was plumping for the $6 billion Proposition 30 tax increase last fall, Gov. Jerry Brown touted a study by two Stanford sociologists that rich people supposedly don’t leave to avoid paying higher taxes. I debunked that study here and here. Wayne Lusvardi did so here. In about two months we’ll know much more about how Prop. 30 — and the federal Obamacare and fiscal cliff — tax increases have affected tax receipts and employment.
  • CalPERS to sell all its stock in two gun manufacturers – The nation’s biggest public pension fund is taking a stand against gun violence by voting to sell all its investments in two firearms manufacturers: Smith & Wesson Holding Corp. and Sturm, Ruger & Co. On Tuesday, the Investment Committee of the California Public Employees’ retirement System voted to sell about $5 million worth of the gun makers’ stock and other securities. Some of the two companies’ products — particularly assault weapons and cheap handguns, known as Saturday night specials — are illegal in California. They “present a significant danger to the health, safety and lives of California residents, including our members, no matter where such weapons are sold or trafficked in the United States,” read the motion approved by the CalPERS board’s Investment Committee in a 9 to 3 vote. Representatives of Smith & Wesson and Sturm, Ruger did not respond to requests for comment on the CalPERS vote.
  • California Insurance commissioner touts new plan for CA health-care regions – Saying the Legislature’s existing proposal could exacerbate rate shock, state Insurance Commissioner Dave Jones unveiled his own proposal Tuesday for dividing California into geographic regions for implementing federal health-care reform. Jones vowed to appear Wednesday before Senate and Assembly health committees to push his 18-region plan instead of existing legislative proposals for six regions in 2014 and 13 regions in 2015. “I believe very strongly that we should draw regions in a way that minimizes rate increases,” Jones said. Because costs of providing health care differ among communities, residents could find themselves paying higher or lower premiums based on the extent to which regions drawn by the state differ from those currently used by health insurance firms.
  • A Mighty Wind – California Flatulence Jokes

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