Michael Shaw

Cap-and-trade extension slips into Assembly budget plan

By Michael Shaw, VP, Government Relations

Capitol Update, May 19, 2017 Share this on FacebookTweet thisEmail this to a friend

Last week on very late notice, the Assembly Budget Subcommittee on Resources added to their agenda adoption of language to extend the cap-and-trade program reflecting the language of AB 378 (C. Garcia) that calls for limiting GHG emissions at the facility level and basing industry assistance on meeting new air quality standards further undermining the existing cap-and-trade program. While the notice came out late the day before the hearing, CMTA and other industry groups were present to oppose the inclusion of the language.

Ultimately the committee adopted the language on a party-line vote, but not without some significant questions regarding the process and transparency of adopting new budget language without providing the public much opportunity to review the language ahead of time. Additionally, as a budget matter this effort would require a simple majority vote failing to meet one of the major qualifications that the Governor has set for the program extension, a two-thirds vote.

On Thursday, Governor Jerry Brown’s executive secretary Nancy McFadden announced on Twitter that the Governor would not sign a cap-and-trade extension bill unless it receives a two-thirds vote of the Legislature:


AB 378 currently requires a simple majority vote and would presumably not meet the Governor’s primary condition. However, time is running short as Governor Brown also stated that he wants the extension deal done alongside the budget with many interpreting that to mean a deal needs to be reached by June 15th, the deadline to pass a state budget out of the Legislature.

CMTA is leading the coalition opposed to AB 378 and other legislation. The bill now awaits a decision in the Assembly Appropriations Committee where state costs are assessed and weighed in relation to state budget priorities. 

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