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     How do you put a price tag on environmental costs, and who
pays it? A free emission allowance is not a price; it's a give
away. An auction sets a price at no higher than what a buyer is
willing to pay. 
     Ordinarily I'd like to see the income spent of GHG reduction
programs and social equity, but in these times it makes sense to
apply it to the state budget deficit, or to the Resources Agency
and Cal EPA with a similar result.
     Offsets are another problem; too many encourage continuing
pollution of disadvantaged neighborhoods. The challenge is to limit
and reduce offsets so as to stimulate optimal elasticities of
response from clean energy industries and their jobs and benefit to
the economy and environment. Done right, these benefits outweigh
costs to old industries.
     Local governments can meet higher targets than those you are
setting. They (and the state) are still building subsidized new
roads and subsidized parking structures.
     Businesses should be required to recycle their materials
where obviously possible, and incentives should encourage more
recycling where it is not.
     The economy, properly including the environment, will grow
with climate protection.