Cap-and-Trade

  • NEW: In addition to the League's Cap-and-Trade Guide, more resources are available at the Institute for Local Government's Cap-and-Trade Resource Center.
     
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    The FY 2014-15 budget included the first real appropriations from Cap-and-Trade auction revenues. The majority of the funds will be used for projects and programs cities will benefit from. The budget takes a two-step approach for the use of Cap-and-Trade investments, with a year-one appropriation schedule and then a continuous appropriation to transit, sustainable communities’ implementation, and affordable housing beginning in FY 2015-16. The budget reserves 40 percent of Cap-and-Trade revenues for future appropriation. This approach provides stable and predictable funding for planning infrastructure investments, while allowing some flexibility for the Legislature and Governor to respond to the priorities for future budget years. 
     
    Gov. Jerry Brown's proposed FY 2015-16 budget would allocate $1 billion from Cap-and-Trade revenues, continuing with the structure established in the FY 2014-15 budget:
    • $200 million for transportation, the Affordable Housing and Sustainable Communities Grant program;
    • $200 million for low-carbon transportation programs;
    • $150 million transit;
    • $250 million for High-Speed Rail; and
    • $202 million for energy efficiency and clean energy, natural resources, and waste diversion as detailed below:
      • $75 million for energy efficiency upgrades/weatherization and renewable energy projects in low‑income dwellings within disadvantaged communities;
      • $20 million for the Energy Commission for energy efficiency upgrades and weatherization in public buildings;
      • $15 million for the Department of Food and Agricultural for agricultural energy and operational efficiency;
      • $25 million for the Department of Fish and Wildlife for wetlands and watershed restoration;
      • $42 million for fire prevention and urban forestry projects; and
      • $25 million for the Department of Resources, Recycling, and Recovery for waste diversion.
    This page will be updated regularly with information on meetings and application details.
  • Download the guide in .pdf format.

    This guide contains an overview of programs relevant to city funding that utilize Cap-and-Trade Auction Revenues. Though other programs, like high-speed rail, will impact California cities, this guide is being compiled with eye toward funding for which cities are most likely to apply.

     These information sheets attempt to guide readers toward more complete information on program guidelines, application procedures and other important information. This guide will be periodically updated, as new information becomes available.

    For more complete information about Cap and Trade -- including an explanation of how Cap-and-Trade functions and variety of other programs being funded with auction revenue -- see the California Environmental Protection Agency’s Cap-and-Trade Page.

  • SB 535 (De León, Chapter 830, Statutes of 2012) requires that 25 percent of all non-utility cap and trade revenues be used to the benefit of disadvantaged communities.  The bill required CalEPA to identify disadvantaged communities based on geographic, socioeconomic, public health, and environmental hazard criteria.  This bill led to the development of CalEnviroScreen.

    CalEPA has produced a spreadsheet identifying the census tract, overall CalEnviroScreen score, the CalEnviroScreen percentile, the pollution burden, population characteristics, total population, the county, zip code and nearest city. For more information about disadvantaged communities, including interactive maps, please see http://www.calepa.ca.gov/EnvJustice/GHGInvest/.

    Some new programs include specific requirements to meet the requirements of SB 535, and are discussed in the program information sheets.


     
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