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Cap-and-Trade Revenue

 

What’s New

Governor’s new budget makes transportation and environment priorities TransForm Blog – January 16, 2014 
By Ryan Wiggins

Last week Governor Brown released his initial budget proposal including a plan to invest $850 million in cap-and-trade greenhouse gas auction proceeds.

The proposal is drawing wide praise from environmental and social justice advocates for including strategies to reduce carbon pollution, support the most disadvantaged communities, and stoke green economic growth.
Link to blog post. 

State budget misses the mark on climate change and transportation
TransForm Blog – June 13, 2013
By Ryan Wiggins
Tomorrow, the legislature will vote on – and likely approve – a budget that includes the Governor’s proposal to make a one-time loan of the first $500 million in cap-and-trade auction revenues to the General Fund. We disagree with this decision. However, we are encouraged by the Governor’s stated commitment to use these funds to invest in projects that reduce greenhouse gas emissions and benefit our communities. A significant portion of the $500 million should have been invested this year, especially in low-income communities in California that already suffer from a wide range of negative environmental and social impacts. These include air and water pollution, physical isolation, lack of access to education, healthcare and employment, and numerous other factors.
Link to blog post

Governor’s Budget Move on Cap-and-Trade Angers Environmentalists
KQED – May 24, 2013
By Scott Detrow
Governor Jerry Brown has spent a lot of energy focusing on the dangers of climate change lately. Speaking to a group of scientists Thursday, he warned, “it’s over” in five years, unless the world steps up efforts to reduce the carbon dioxide emissions that are warming the atmosphere. But while Brown is preaching action on climate change, his proposal to shift revenue from California’s cap-and-trade auctions has environmental groups seeing red.
Link to article

Background

In January, Governor Brown released his budget proposal for the upcoming fiscal year.  One critical component is the revenue generated from the state’s cap-and-trade program, estimated to be approximately $200 million in 2012–2013 and $400 million in 2013–2014.  The specific details of how cap-and-trade revenue is to be spent will be developed by the Department of Finance after receiving input from stakeholders.  But in his budget proposal, the Governor acknowledged that transportation is the single largest contributor of GHGs in California, and reducing transportation emissions will be a top priority.  The Governor also proposed several other projects as top candidates for cap-and-trade revenue, including sustainable agricultural practices, energy efficiency, forest management, bioenergy and composting.  For more detail, read pages 81 – 83 of the Governor’s Budget Summary (pdf).

Resources

- Learn more about AB 1532 (Perez), the bill that authorizes the Department of Finance to develop a 3-year expenditure plan for cap-and-trade revenues.
- Learn more about SB 535 (De Leon), which requires the state to allocate 25% of available cap and trade money to projects that provide benefits to disadvantaged communities and allocate a minimum of 10% of available money to projects located in disadvantaged communities.
- Download a proposal for cap-and-trade revenue  from Housing California, TransForm, Move LA, Public Advocates, Global Green and CA Housing Partnership Corporation.
- Click here to visit the Air Resources Board’s page on cap-and-trade

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