Demand back for pollution permits

Demand for California pollution permits rebounded in the first quarterly auction since an appeals court upheld the program, generating about $500 million for the state, according to results released Wednesday.

The California Air Resources Board reported that it sold out of permits to release greenhouse gases during 2017 or later. The demand exceeded the total supply for the first time since 2015, pushing prices above the minimum.

However, demand remained skimpy for permits that allow pollution in the future as the Legislature debates whether to continue the cap-and-trade program beyond 2020. About 22 percent of those permits were sold.