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On November 24, 2015, the California Air Resources Board released summary results from the cap-and-trade auction conducted on November 17, 2015. Allowance prices were slightly higher than recent auctions, but, overall, the results were similar to recent auctions. Allowance prices were near the minimum price, and all of the allowances offered for sale were purchased. Based on the summary results, the state will collect $657 million in cap-and-trade auction revenue from the November auction. (The actual amount of state revenue will be determined in a few weeks and will depend on the future exchange rate between U.S. dollars and Canadian dollars. Please see the summary results for more details on the process for collecting proceeds.)

Revenues Still Tracking Slightly Higher Than Most Recent Administration Estimate. The November auction is the second of four quarterly auctions scheduled in 2015-16. The Governor’s May Revision assumed $2 billion in revenue in 2015-16, but the 2015-16 budget does not include an explicit revenue assumption for 2015-16. If the remaining two auctions have similar results to the last few auctions, state revenues will be a few hundred million dollars higher than the $2 billion assumed in the Governor’s May Revision.