California ratepayers to receive cap-and-trade revenue
California regulators unanimously approved a plan that will direct a large majority of the state's new cap-and-trade proceeds to residential ratepayers.
Under the new regulation, 85 percent of cap-and-trade sales will be funneled back to state residential ratepayers. The California Public Utilities Commission unanimously approved the rules late last month in an effort to offset rising electricity costs. The revenue will be distributed as a biennial "climate dividend."
The decision is the latest extension of California's cap-and-trade program, which was announced last year. The proposal projects the total dividend seen by customers to be between $5.7 and $22.6 billion over the course of the program.
"The cost of emitting greenhouse gas pollution will now be reflected in most non-residential customers' rates, creating a strong incentive for businesses throughout California to invest in energy efficiency and clean energy," said CPUC President Michael R. Peevey, in a release.
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