Comment Log Display

    Chairman Nichols and Members of the Board:

    While I agree with many of the steps outlined in the AB 32
Scoping Plan, I am concerned by the amount free pollution credits
to the industrial sector in the Cap & Trade Design. I urge you to
revisit and revise your allocation method. The proposed level of
free allocation to the industrial sector is likely much higher than
is needed to combat leakage. Several research studies have found
that the “leakage” claims of the industrial sector are exaggerated
and subsidizing these industries through free allowances creates
barriers to transitioning to a cleaner economy. 

Looking to the EU for an example, their plan allocated too many
permits for free, and this has been a major obstacle to their
success.

Giving out permits for free means that the cost and harm of
pollution remains on the citizens and not on the industries that
are profiting while polluting.

    Please take advantage of the favorable public climate that
California currently enjoys around addressing climate change and
implementing AB 32 by taking much-needed bold actions and removing
the massive allowance giveaways outlined in the current rules.
Thank you.