Recent actions by the California Legislature and the Administration of Governor Brown promise to accelerate state efforts to address climate change. Cap and trade is one key strategy that California is implementing to achieve the greenhouse gas (GHG) emission reduction goals set in the state law. This resource center provides an overview of cap and trade, the funding available to local governments and each of the current cap and trade funds as of August, 2016. The resource center will be completely updated by September 30, following final action by the Governor on legislation passed by the Legislature prior to adjourning on August 31. View the individual funds below, or download the full brochure here.Click here to download the overview infographic.
The California Global Warming Solutions Act of 2006, AB 32, is a multi-year program to reduce Greenhouse Gas (GHG) emissions in California to 1990 levels by 2020. One key strategy to achieve this goal is a ‘cap and trade’ market system. The ‘cap’ creates a limit on carbon dioxide equivalent emissions, while a corresponding number of allowances within the cap can be ‘traded.’ The allowances are purchased by utilities and businesses at quarterly auctions. Over time, as the cap lowers, businesses that aggressively reduce emissions can trade their surplus allowances to firms that find it more expensive to reduce emissions.
The State of California’s 2014-15 and 2015-16 budgets and the Governor’s proposed 2016-17 budget include a variety of new and existing grant programs using AB 32 cap-and-trade auction revenues to fund local government sustainability efforts. While these cap and trade funding programs are administered by a variety of individual state agencies, the goal of the cap and trade program is to advance both the State’s AB 32 GHG reduction goals as well as the goals in local Climate Action Plans and other sustainability programs and projects in communities.
FUNDING LEVEL: 20% ongoing allocation; $565 million through June 2016; 50% of funds must benefit disadvantaged communities.
ADMINISTERING AGENCY: Strategic Growth Council.
GHG methodology by CARB. Program guidelines by the Strategic Growth Council.
FUNDING LEVEL: 10% ongoing allocation; $265 million through June 2016; 25% of funds must benefit disadvantaged communities.
ADMINISTERING AGENCY: California State Transportation Agency develops guidelines, scores applications, and makes recommendations. Funding allocated and program administered by California Transportation Commission
FUNDING LEVEL: One-time allocation; $20 million in 2014-15 budget
ADMINISTERING AGENCY: California Energy Commission (CEC); Governor’s proposed 2016-17 budget would transfer administration to the Department of General Services.
FUNDING LEVEL: Annual budget allocation; $145 million in through June 2016; 100% of funds must benefit disadvantaged communities.
ADMINISTERING AGENCY: California Department of Community Services & Development. GHG methodology by CARB.