CSAC Bulletin Article

$1.5 Billion Cap and Trade Expenditure Plan Released

September 7, 2017

Governor Brown’s Administration released a letter last week outlining their proposal for a $1.5 billion cap and trade expenditure plan which will be enacted through a budget trailer bill prior to the end of the legislative session. This expenditure plan follows the enactment of two major pieces of climate-related legislation this session, AB 398 and AB 617.

AB 398 (E. Garcia) was passed in July by a two-thirds vote and extended the Cap and Trade Program in order to help California meet its 2030 emission reduction goals. The extension provided for in AB 398 also provides for billions of dollars in auction proceeds to invest in communities across California and also includes a new set of funding priorities for cap and trade revenues

AB 617 (C. Garcia) establishes a program to measure and reduce air pollution from mobile and stationary sources at the neighborhood level in the communities most impacted by air pollutants.

The proposal closely follows the new funding priorities set forth in AB 398, and of particular importance to counties, includes funding for sustainable forests and waste diversion. Negotiations are likely to continue on the expenditure plan until the end of the legislative session

Proposed Department of Finance 2017-2018 Cap & Trade Expenditure Plan

Investment Category

Amount

AB 398 Categories

AB 617 Implementation

$350 million

  • Air Toxic and Criteria Air Pollutants
  • Low and Zero Carbon Transportation

Low Carbon Transportation

$607.5 million

  • Air Toxic and Criteria Air Pollutants
  • Low and Zero Carbon Transportation

Sustainable Agriculture

$170 million

  • Short –Lived Climate Pollutants
  • Air Toxic and Criteria Air Pollutants

Sustainable Forests

$305 million

  • Healthy Forests and Urban Greening
  • Climate Adaptation and Resiliency

Waste Diversion

$40 million

  • Short-Lived Climate Pollutants

Clean Energy

$5 million

  • Short-Lived Climate Pollutants
  • Air Toxic and Criteria Air Pollutants

Energy Efficiency

$20 million

  • Climate Adaptation and Resiliency

Research and Development

$2.5 million

  • Climate and Clean Energy Research

TOTAL: $1.5 Billion

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