Wednesday, 300 of California’s biggest companies bid how much they are willing to pay to pollute.
It takes only 100 gallons of gas to make one ton of carbon dioxide. Companies won’t have to pay for all the emissions they make, just 10 percent.
It presents companies with a choice – either reduce their emissions by 10 percent, or pay the state to keep those emissions.
“The facilities that are covered are based on the fact that they release more than 25,000 tons of carbon dioxide a year,” said David Clegern, with the California Environmental Protection Agency.
The state uses the funds from the carbon emission auction, about $1 billion, for environmental programs.
For more, watch Ben Deci’s report above.