During Climate Week NYC, Governor Gavin Newsom announced he has authorized California to move forward with the process of linking its Cap-and-Invest program to Washington's carbon market, building on the state's existing partnership with Quebec.
Newsom said he made the formal findings legally required for California to proceed with the final step to link the two states' markets. The action allows the California Air Resources Board to begin the public regulatory process needed to formally link the markets.
"California has long shown that climate action means a stronger economy, cleaner air, and billions of dollars of investment back into communities across our state," Newsom said. "By joining forces with our partner in Washington State, we will build a stronger, more durable carbon market that will drive investment, cut pollution, and power the clean economy of the future."
Washington Governor Ferguson said linkage is "smart economics" that will unlock greater emissions reductions, lower the cost of clean technologies, and create good-paying jobs. California Secretary for Environmental Protection Yana Garcia said linking the markets strengthens efforts to cut pollution and protect public health while keeping economies strong.
California law requires the Governor to make specific findings about a partner state's carbon market before CARB may proceed with linkage. Earlier this month, CARB requested those findings, and Newsom said he took action on Monday, September 21, consistent with advice from the Attorney General.
California linked with Quebec's Cap-and-Trade System on January 1, 2014. California and Quebec signed a linkage agreement with Washington in June to begin the early process of linkage.
According to the Governor's office, Cap-and-Invest has generated $37 billion for climate investments, funded 600,000 projects statewide, supported 143,000 jobs, and delivered $16 billion in utility bill credits directly to Californians. Recent updates are estimated to provide $10 billion in direct relief to electricity customers through bill credits and generate an estimated $8 billion for the Greenhouse Gas Reduction Fund through 2030.