While the Commonwealth will receive a windfall of more than $10 billion per year in revenue from auctioning pollution permits, state and local governments will transfer more than $2 billion a year to the Commonwealth Government. In addition, the states will be liable for tens of billions of dollars-worth of expenditure associated with adapting to climate change because the federal government, which is giving away more than $10 billion in compensation to households and polluters each year, will not be providing state governments with any financial assistance to meet either the direct costs of the CPRS or the need for urgent investment in adaptation infrastructure.