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AEE STATEMENT ON POTENTIAL CALIFORNIA PLAN TO BORROW $500 MILLION FROM AB 32 FUND FOR STATE’S GENERAL FUND

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Sacramento, CA – California Governor Jerry Brown yesterday proposed loaning the entire first year's auction revenues of $500 million from the state’s landmark environmental legislation AB 32 to the state's general fund. 

The following is a statement from Steve Chadima, SVP and Director of California Initiatives at Advanced Energy Economy (AEE):

"The historic passage of AB 32 was a clear signal that Californians were ready to lead the nation in environmental and energy stewardship. A key component of the law was the auction of emissions allowances, the proceeds from which were to be used exclusively to reduce emissions and move the state toward the overall goals of AB 32. California should not borrow against these funds for other purposes. Regulatory certainty is important, and now is not the time to raise doubts about what these funds will be used for. Market participants and stakeholders have weighed in on the draft investment plan for these funds, expecting that the dollars would be invested wisely and in accordance with their legal intent. It's time to move forward accordingly."

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