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CA’s $900-Million Plan For Spending Cap-And-Trade Revenue

Sacramento, CA — Governor Jerry Brown and legislative leaders have finalized a plan to spend the remaining revenues this fiscal year from the cap-and-trade program.

Cap-and-trade was created as part of the AB 32 global warming legislation passed by lawmakers in 2006. It requires high polluting companies to purchase carbon offset credits. The plan has been lauded by many Democrats and criticized by several Republicans. Opponents argue that it has resulted in higher energy and gas prices. Under current law, 60% of the revenue collected needs to go towards public transit, affordable housing, sustainable communities or high speed rail.

A plan for spending the money has been agreed to by Governor Brown, Senate President pro Tempore Kevin de Leon and Assembly Speaker Anthony Rendon. Governor Brown says, “California’s combatting climate change on all fronts and this plan gets us the most bang for the buck. It directs hundreds of millions where it’s needed most – to help disadvantaged communities, curb dangerous super pollutants and cut petroleum use-while saving some (revenue) for the future.”

The plan spends $900-million and puts $462-million in reserves for future years.

The agreement includes the following appropriations, per the Governor’s Office:

$368 million to the Air Resources Board, including:

-$133 million to the Clean Vehicle Rebate Program.

         -$80 million to the Enhanced Fleet Modernization Program, Plus-Up Pilot Project and up to $20 million of this amount may be used for other light-duty equity pilot projects. 

         -$150 million for heavy-duty vehicles and off-road equipment investments.

        -$5 million for black carbon wood smoke programs.

$140 million to the Office of Planning and Research for the Strategic Growth Council to provide transformative climate communities grants.

$135 million to the Transportation Agency for the Transit and Intercity Rail Program.

$80 million to the Natural Resources Agency for the Urban Greening program.

$65 million to the Department of Food and Agriculture, including:

    -$50 million for the early and extra methane emissions reductions from dairy and livestock operations.

          -$7.5 million for the Healthy Soils Program.

          -$7.5 for the State Water Efficiency and Enhancement Program (SWEEP).

$40 million to the Department of Forestry and Fire Protection, including:

-$25 million for the Healthy Forest Program.

            -$15 million for urban forestry programs.

$40 million to the Department of Resources Recycling and Recovery for waste diversion and greenhouse gas reduction financial assistance.

$20 million to the Department of Community Services and Development for weatherization and renewable energy projects.

$10 million to the Department of Transportation for the Active Transportation Program.

$2 million to the Office of Planning and Research for the Strategic Growth Council to provide technical assistance to disadvantaged communities.