This is Essential Politics for August 2017. Find our daily look at California political and government news over here.
California saw strong results from its latest cap-and-trade auction this month: Every pollution permit offered for sale was purchased.
The auction was California's first since Gov. Jerry Brown signed legislation extending cap and trade until 2030, erasing some of the political and legal uncertainty that had dogged the program.
“It’s a strong vote of confidence in the long-term certainty of the system," said Chris Busch, the research director at Energy Innovation, a San Francisco-based think tank.
The cap-and-trade program requires companies to obtain permits to release greenhouse gas emissions into the atmosphere, a key part of the state's battle against global warming.
The latest auction could generate roughly $640 million in revenue, Busch calculated.
Auction revenue is spent by the state on projects intended to reduce emissions, such as mass transit and electric vehicle rebates. It's also being used by Brown to build the bullet train from Los Angeles to San Francisco.
This post has been updated with more details on the auction.