Senate Releases Cap and Trade Proposal
August 18, 2016
The State Senate released their latest Cap and Trade proposal this week, totaling approximately $1.2 billion in spending for a variety of different programs aimed at reducing greenhouse gas (GHG) emissions in California. The plan does include funding for a number of CSAC priorities, including waste diversion, transportation, and tree mortality as well as funding for a new local climate program aimed at disadvantaged communities.
However, the allocation amounts differ widely from the Governor’s proposal and CSAC is concerned to see lower amounts dedicated to certain key programs, such as forest health and tree mortality, down to just $20 million from the Governor’s proposed $150 million.
As the Legislature nears the end of the Legislative session, this is the first attempt at closing a deal on cap and trade auction revenues after the Legislature punted decisions on this issue outside of the budget process in June. According to the Legislative Analyst Office (LAO), there is roughly $1.4 billion in revenue available for appropriation.
The allocation plan and the cap and trade program have been under a heightened level of scrutiny as the last carbon-permit auction yielded lower than expected revenues, bringing in only $10 million as opposed to previous auctions that generated hundreds of millions. Another auction was held earlier this week and it is anticipated that the Assembly is awaiting the results prior to the release of their own proposal.
In addition, the cap and trade program and the Administration’s ability to move beyond 2020 has garnered attention as legislature leadership continues to push SB 32 (Pavley), the bill that would codify the Governor’s 2030 targets.
The following is a breakdown of the Senate’s proposal included in AB 1613:
|
Investment Category |
Department |
Program |
Amount |
|
Continuous Appropriation |
High Speed Rail Authority |
High Speed Rail Project |
NA |
|
Transportation Agency |
Transit and Intercity Rail Capital Program |
NA |
|
|
State Transit Assistance |
Low Carbon Transit Operations Program |
NA |
|
|
Strategic Growth Council |
Affordable Housing & Sustainable Communities |
NA |
|
|
50 percent in reduction in Petroleum Use |
Air Resources Board |
Low Carbon Transportation & Fuels |
$150 |
|
CalTrans |
Low Carbon Road Program |
$0 |
|
|
Transportation Agency |
Transit and Intercity Rail Capital Program |
$100 |
|
|
Energy Commission |
Biofuel Facility Investments |
$0 |
|
|
Local Climate Action |
Strategic Growth Council |
Transformational Climate Communities Program |
$180 |
|
Short-Lived Climate Pollutants |
Air Resources Board |
Black Carbon Woodsmoke |
$5 |
|
Air Resources Board |
Refrigerants |
$0 |
|
|
Cal Recycle |
Waste Diversion |
$40 |
|
|
Dept. of Food & Agriculture |
Climate Smart Agriculture- Healthy Soils |
$20 |
|
|
Dept. of Food & Agriculture |
Dairy Digesters |
$55 |
|
|
Safeguarding California/Water Action Plan |
Dept. of Food & Ag & Water Resources |
Water and Energy Efficiency |
$30 |
|
Energy Commission |
Drought Executive Order- Water and Energy Technology Program & Appliance Rebates |
$15 |
|
|
Dept. of Fish & Wildlife |
Wetlands and Watershed Restoration/CalEcoRestore |
$30 |
|
|
Safeguarding California/Carbon Sequestration |
CAL Fire |
Healthy Forests |
$20 |
|
Urban Forestry |
$30 |
||
|
Natural Resources Agency |
Urban Greening |
$20 |
|
|
Energy Efficiency & Clean Energy |
Department of General Services |
Energy Efficiency for Public Buildings |
$0 |
|
I Bank |
California Lending for Energy and Environmental Needs Center |
$50 |
|
|
Conservation Corps |
Energy Corps |
$10 |
|
|
Department of Community Services and Development |
Energy Efficiency Upgrades/Weatherization |
$100 |
|
|
University of California/California State University |
Renewable Energy & Energy Efficiency Projects |
$10 |
|
|
TOTAL |
$1.17 B |
