California Senate leader Darrell Steinberg has claimed that the new carbon tax proposal that was presented on Thursday, would benefit the poorest residents of the state.

He also said that the tax will also benefit the public transportation in the state. The tax is expected to raise an estimated $3.6 billion during its first year. The tax will be applicable on gasoline and other fuel. It will start at 15 cents a gallon in 2015 and rise to 24 cents a gallon in 2020, said Steinberg. He was speaking at the Sacramento Press Club.

Steinberg has said that poverty is rising the state and the new tax will be routed to low- and moderate-income working people througha federal tax credit. He also pointed out that it will address the gap in states funding for the public transportation system.

Under the proposed plans, the fuel will not be added to the state's cap and trade program next year. Cap and trade has been regulating emissions and sets a falling limit on the amount of greenhouse gases that can be emitted by businesses. The system also allows trade of excess permits in the open market.

"If gas prices spike and fluctuate wildly, I am concerned that the climate change skeptics will use the crisis to unravel AB 32 and weaken our essential climate goals," he said.