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Cap-and-Trade Revenue

What’s New

Over the past two years, ClimatePlan partners worked hard to ensure that proceeds from creating a cap-and-trade market for greenhouse-gas emissions helps to create more sustainable communities.

As a result, 2014 was a big year for California’s cap-and-trade program. In June, the Legislature passed — and the Governor signed — a budget that invested millions from cap and trade proceeds this year towards sustainable communities.


For the first year (2014 – 2015), we see:
– $250 million for High Speed Rail
– $200 million for Low Carbon Transportation
– $65 million for Sustainable Communities
– $65 million for Affordable Housing
– $25 million for Low Carbon Transit Operations
– $25 million for the Transit and Intercity Rail Capital Program

Starting in 2015, 35% of cap and trade proceeds will go to sustainable communities, thanks to advocacy by ClimatePlan partners. One key program which will be funded from this cap-and-trade win is the Affordable Housing and Sustainable Communities Program, administered by the Strategic Growth Council.

To learn more about this, read our partners’ blogs:
Legislature reaches landmark budget agreement on cap-and-trade – Stuart Cohen, TransForm
Budget deal a shot in the arm for California Sustainable Communities – Amanda Eaken, NRDC


In 2006, AB 32, California’s Global Warming Solutions Act, was adopted. This landmark legislation requires California to lower greenhouse gas emissions to 1990 levels by 2020 — the equivalent of taking 15 million cars off the road. The California Air Resources Board (ARB), the state agency responsible for implementation, developed the AB 32 Climate Change Scoping Plan. This plan lays out the strategy and actions to implement AB 32. One of the key strategies to implement AB 32 is a statewide cap-and-trade program.

Cap and trade places a cap on greenhouse gas emissions: companies who exceed their cap can buy allowances from other companies who produce fewer greenhouse gas emissions and are willing to trade.


Cap and Trade Program – ARB
– Cap and Trade 101 – Housing California
Cap and Trade: Emissions reductions at low cost – Environmental Defense Fund

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