Proposition 130 Implementation

2025 Regular Session Introduced by Judy Amabile and 18 co-sponsors

SB 25-310: Proposition 130 Implementation SummaryThis bill, signed into law by the Governor, serves to implement the provisions of Proposition 130, a voter-approved measure that es

Governor Signed

Summary

This bill, signed into law by the Governor, serves to implement the provisions of Proposition 130, a voter-approved measure that established a statewide carbon pricing program. The main intent of the legislation is to provide the regulatory framework and administrative structures necessary to operationalize the carbon pricing system outlined in Proposition 130.

Key Provisions

Carbon Pricing Mechanism: The bill directs the state's environmental agency to develop and administer a cap-and-trade program for greenhouse gas emissions. This will involve setting emissions caps for covered industries, distributing emissions allowances, and facilitating a secondary market for trading these allowances.

Revenue Allocation: The legislation earmarks the revenue generated from the carbon pricing program to be deposited into a newly created "Climate Investment Fund." These funds will be allocated towards clean energy initiatives, green infrastructure projects, worker transition assistance, and direct dividends to state residents.

Compliance and Enforcement: The bill empowers the environmental agency to monitor emissions, audit compliance, and levy penalties on entities that fail to meet their carbon reduction obligations under the program. It also establishes an appeals process for regulated entities.

Stakeholder Advisory Board: SB 25-310 mandates the creation of a Proposition 130 Stakeholder Advisory Board, composed of representatives from industry, environmental groups, labor organizations, and impacted communities. This board will provide ongoing input and guidance on the program's implementation and evolution.

Impacts

Businesses and Industries: Companies in energy-intensive and high-emitting sectors will be required to participate in the carbon trading system, facing new compliance costs and incentives to reduce their greenhouse gas footprint.

Households and Consumers: Some of the carbon pricing revenue will be directed towards consumer dividends, providing a financial offset for potential increases in energy and goods prices. However, certain household costs may rise in the short-term.

State Budget and Economy: The carbon pricing program is projected to generate several billion dollars annually in new state revenue, which will be reinvested into climate mitigation, adaptation, and economic transition efforts.

Environmental Benefits: By putting a price on carbon emissions, the program aims to drive down greenhouse gas outputs and accelerate the state's transition to a low-carbon economy, with positive impacts on public health and the environment.