This webinar centered on our latest report quantifying foregone revenue from California policy uncertainty, and included views from the following respondents:

• Jo Gardias, Ralph Cavanagh Climate Solutions Fellow, Natural Resources Defense Council

• Lenny Hochschild, Founding Partner, Environmental Commodity Partners LP

• Jonathan Kendrick, Policy Advocate, California Chamber of Commerce

Report Executive Summary: California gave away up to $3 billion in revenues from its cap-and-trade program over the last year. This lost revenue, equal to roughly one-quarter1 of California’s budget deficit, would have otherwise been directly invested into communities and used to lower utility bills for ratepayers. Weak revenue results stem from tumbling allowance prices that have fallen from an all-time high of nearly $42 to near-historic lows of $26 caused by uncertainty over legislative extension and delays in regulatory rulemaking. Restoring cap-and-trade auction revenue requires two actions in order: (1) the legislature acting as soon as possible to extend the cap-and-trade program beyond 2030, and (2) the California Air Resources Board (CARB) resuming its rulemaking immediately thereafter and delivering anticipated allowance supply cuts. We expect California will continue losing between around $600 million and $1 billion in revenue from each quarterly auction until the California legislature reauthorizes the cap-and-trade program. Legislative reauthorization would position the cap-and-trade program to provide a reliable source of funding for California during uncertain times.