Currently the department is auctioning allowances for corporations emitting large amounts of pollution, including through smokestacks or tailpipes. Such allowances are auctioned quarterly among the state’s largest emitters, such as oil refineries, manufacturers, natural gas companies and energy providers. In its inaugural year the state has netted $857 million so far through this economic model, legislated through the Climate Commitment Act.
Offset credits and business allowances are priced separately, and often credits are cheaper than allowances, as is the case in California’s similar program. This July, the Golden State sold offsets for $27.25 each while allowances went for about $10 higher, $36.56 — prices that could reflect how much a
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