California’s Cap-and-Trade Auction Proceeds: Taxes, Fees, or Something Else?

In 2006, California enacted the Global Warming Solutions Act, known as AB 32. Under that legislation, the state must reduce greenhouse gas emissions to their 1990 level by the year 2020. This paper examines the legal viability of a range of potential uses of the auction proceeds generated by AB 32’s market‐based mechanism.