California continues to lead the rest of the country on the environmental policy front. Last week the Bay Area Air Quality Management District proposed a carbon fee that would apply to all green house gas-producing facilities permitted within its air district.
The fee is relatively small–4.2 cents per metric ton of carbon dioxide equivalent–but it does create a precedent and lay the groundwork for future carbon fees.
"This is largely an effort to recover the costs for our climate protection programs," said agency spokeswoman Karen Schkolnick. She added that the she hopes the fee will encourage businesses to reduce emissions, too.
According to a report on RedHerring.com, the largest emitter in the Bay Area, the Shell oil refinery, would have to pay $186,000 under the proposed rule, while the fiftieth largest emitter, a paper maker, would pay a little less than $2,000.
The carbon tax proposal will be debated at a public hearing at the end of the month. If passed in May by the board of directors, it will go into effect in July.
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