SACRAMENTO -- The sale of California's first pollution permits will generate less money than expected for the state budget.
Gov. Jerry Brown and state lawmakers projected that the nation's largest carbon marketplace would raise $1 billion during the fiscal year that ends in June, with about half the proceeds going to close the state's budget deficit.
But the first sale last week raised only $289 million, with most earmarked for utilities and ratepayers. That leaves the state about $56 million.
Two more auctions are planned in February and May. But the nonpartisan Legislative Analyst's Office estimates that the state may gain only about $140 million if the trend holds.
Department of Finance spokesman H.D. Palmer told The Sacramento Bee on Wednesday that the governor's January budget could reflect the lower projections.