Treasury official: Administration open to carbon tax if GOP takes lead. ”A senior Treasury Department official said Tuesday that the Obama administration could back carbon taxes as part of a wider fiscal reform deal, but with a big caveat: Republicans would have to show that they want to play ball. ‘If this is going to be an issue that is part of discussions, there will have to be some interest shown by Republicans if we are going to make any progress,’ Gilbert E. Metcalf, the Treasury Department’s deputy assistant secretary for environment and energy, told reporters.” Ben German in The Hill.
Top story: An ‘energized’ America and the policies behind it
California set to hold its first emissions auctions tomorrow. ”California’s fledging market-based system for reducing greenhouse gas emissions makes its formal debut on Wednesday with its auction of state-issued pollution allowances. More than six years in the making, the state’s so-called cap-and-trade program sets limits on carbon dioxide emissions for virtually all sectors of California’s economy, the ninth-largest in the world. Emissions allowances are allotted to polluters, and companies whose emissions exceed their allocations must either obtain extra allowances or buy credits from projects that cut greenhouse gas emissions.” Felicity Barringer in The New York Times.