More than $9.3B spent on climate-centered policies

$1.3B

Continued from Page A2 to $1.3 billion in expenditures by the High‐Speed Rail Project have all been funded from the auction of emission permits in a cap-andtrade process. Cap-and-trade is a system where the government allows companies to emit a certain amount of carbon dioxide and global warming pollutants for a fee.

A limit or “cap” is set by a government entity, with the total amount being divided into equal parts called allowances. Each allowance is then auctioned off but the number of permits issued each year are lowered. That makes the permits more costly to businesses wanting to buy them, while at the same time, it lowers the total emissions cap.

The increasing reductions in the amount of allowances also increases the price. Companies that exceed the allowance are taxed while those who have more than they need can sell or trade them.

To date California has invested more than $9.3 billion to pay for plug-in or zero emissions hybrids, transit services, affordable housing units, restoration of land, planting trees and supporting employment opportunities.