$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 |
|
|
Low Carbon Transportation |
$607.5 million |
|
|
Sustainable Agriculture |
$170 million |
|
|
Sustainable Forests |
$305 million |
|
|
Waste Diversion |
$40 million |
|
|
Clean Energy |
$5 million |
|
|
Energy Efficiency |
$20 million |
|
|
Research and Development |
$2.5 million |
|
TOTAL: $1.5 Billion
