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Brown Sees $500 Million Cap-and-Trade Fees for California

California Governor Jerry Brown plans to use half of the revenue from the nation’s first state-run cap-and-trade air-pollution program to help ease a $9.2 billion deficit in the most populous U.S. state.

Brown estimates the state will take in about $1 billion in the year beginning July 1 under the landmark legislation, which allows industry to buy and sell carbon credits to reduce greenhouse gases. The 73-year-old Democrat wants to use about $500 million on environmental programs now financed through the general fund, said H.D. Palmer, a Finance Department spokesman.