Long Beach, California looking into cap and trade to raise money for budget necessities

8/12/12, "Long Beach to study possibility of selling carbon credits to industry to offset tree costs," Press-Telegram

"A proposal to be introduced Tuesday to the City Council asks to determine the feasibility of selling carbon credits potentially produced by Long Beach's 393,000-tree urban forest to help defray the multimillion dollar annual cost of tree trimming.

The possible source of revenue - at a time when Long Beach leaders are faced with balancing another deficit in 2013 - would come from businesses such as utility companies and industrial plants buying carbon credits to offset their yearly obligations under AB 32, California's 2006 global warming law.

The bill requires reductions of greenhouse gas emissions to 1990 levels by 2020.

Councilwoman Gerrie Schipske, the measure's sponsor, said she discovered markets set up to exchange the carbon credits while she was researching corporate sponsorship opportunities for the city.

"I just find that it's an interesting way to raise money for tree maintenance and do nothing except take credit for the fact that we have cultivated this wonderful urban forest," Schipske said.

The estimated annual cost of maintaining just the 93,000 trees located on public property in medians and parking strips is $2.5 million.

Long Beach has a projected $17.2 million deficit for the next fiscal year.

Officials are planning a $227,703 cut to the tree trimming budget by completing a competitive bidding process....

California carbon allowances were trading at $19 a ton last week, according to Point Carbon, which tracks global power, gas and carbon markets.

To enter the carbon-trading market, Long Beach would have to validate its tree inventory and meet other state criteria, according to Schipske.

Schipske's resolution is co-sponsored by Councilmen Robert Garcia and James Johnson." via Tom Nelson

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