Cap-and-trade extension gets approval from California senate

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LOS ANGELES (Reuters) – Lawmakers in California’s Democratic-controlled senate voted by a slim margin on Monday to extend the state’s cap-and-trade program for another decade, sending the bill to their colleagues in the assembly for approval.

Democrats hold a supermajority in both houses of California’s legislature but passage of the cap-and-trade extension has been complicated by resistance from both liberal and moderate wings of the party and its fate in the assembly is uncertain.

Governor Jerry Brown, also a Democrat, has championed the package of legislation and is expected to sign it into law if it passes both houses. A single Republican joined Democrats in voting in favor of it in the senate.

“Air pollution and greenhouse gases know no boundaries. I am proud to be a co-author of these two important measures that solidify California as a world leader in tackling the greatest threats that confront mankind in the 21st century,” State Senator Bob Hertzberg said.

Speaking in opposition, State Senator Andy Vidak said the laws represented a “regressive” tax that would not make any impact on climate change.

“We could shut down the entire state of California and it would have no effect on the global climate,” Vidak said.

The legislation puts California front and center in a bid by mostly Democratic governors to reduce carbon emissions and adhere to climate change goals of the Paris Agreement after Republican President Donald Trump withdrew the United States from the pact.

The bills would extend California’s cap-and-trade program, which was set to expire in three years, through 2030 and attempt to strengthen it by requiring large industrial facilities to upgrade old equipment with cleaner, more modern technology by 2023.

The package also seeks to reform the state’s cap-and-trade market by curbing the number of free carbon allowances by 40 percent by 2030 and requiring that offsets be sourced from California, not elsewhere.

Despite their supermajority Democrats have failed to pass previous attempts to pass new cap-and-trade legislation over opposition from more liberal members of the party who felt it did not go far enough and moderates concerned about the impact on business.

Republicans have been largely united in opposing the legislation, saying it places unfair burdens on consumers and employers, especially on top of a 12-cent-a-gallon gas tax hike passed by state lawmakers earlier this year.

Reporting by Dan Whitcomb; Editing by Peter Cooney and Joseph Radford

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