California to Borrow $500 Million From Carbon Fund in Brown Plan
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California would borrow $500 million in carbon allowance auction proceeds, required by law to be spent on emissions-cutting efforts, to cover general expenses under Governor Jerry Brown’s latest budget.
The loan would be “short-term” and paid back with interest, Matthew Rodriguez, California’s secretary for environmental protection, said in a conference call today. Lending the money to the general fund is “fiscally prudent” and will give the state more time to better estimate how much revenue its carbon sales will generate and how best to spend it on emissions-reducing projects, he said.