The Coronavirus pandemic has forced a budget hit on California’s climate mandates
Democratic Democratic Gov. Gavin Newsom has proposed funding cuts to deal with what has been projected as a revenue deficit of $54 billion as a consequence of the economic response to the coronavirus. The state’s carbon cap-and-trade program pays for climate programs, which includes incentives for buying clean cars, electric buses, and off-road freight equipment, but as with other programs, the pandemic has forced a budget hit on California’s climate mandates.
Newsom had been expecting that 2020-2021 cap-and-trade auctions would generate $2 billion. But oil refineries and cement factories that are big spenders in cap-and-trade auctions because they are big greenhouse gas emitters. will ikely will be running at reduced levels for months to come, if not longer.
Anne C. Mulkern at E&E News reports that clean car incentives aren’t a priority for whatever money is generated at the auctions.
And that means the state mandate to reduce emissions 40% below what they were in 1990 by 2050 could sputter since California’s transportation sector is its largest emissions source.
Without incentives, the conversion to more zero-emission vehicles, including electric buses and trucks, could be harder to achieve.
(Crossposted with DailyKos.)