California passes carbon fee

California air regulators approved the US’s first statewide carbon fee on utilities, oil refineries and other polluting industries.

The money raised by the California Air Resources Board, which voted 9-0, is intended to pay for the bureaucratic expenses of carrying out the state’s 2006 global warming law, which requires greenhouse gas emissions statewide to be reduced by 25% over the next decade.

The fee will be imposed at the end of 2010 and raise $63.1m annually during its first three years.

The amount will level off at $36.2m in the fifth year.