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Governor Proposes Cap-and-Trade Expenditures and New Zero-Emission Vehicle Target

January 29, 2018
Gov. Jerry Brown on Friday, Jan. 26 released an addition to his proposed FY 2018‒19 budget related to climate change.
 
This addition addresses three major points including increasing zero-emission vehicles, a Cap-and-Trade expenditure plan and efforts to increase carbon sequestration and resilience.
 
Increased Zero-Emission Vehicles
 
A plan to increase the number of zero-emission vehicles (ZEV) in the state from the current 350,000 to five million is a key part of the proposal. To fund it, the Governor proposes a $2.5 billion investment plan over eight years for clean vehicle rebates and infrastructure. This action builds on Executive Order B-16-12 from 2012, which calls for 1.5 million ZEV in California by 2025.
 
Executive Order B-48-18, which accompanied the budget proposal, orders state entities to work with government and the private sector to achieve the following targets:
  • At least 5 million zero-emission vehicles on California roads by 2030;
  • Construction and installation of 200 hydrogen fueling stations and 250 ZEV chargers, including 10,000 direct current fast chargers, by 2025; and
  • Partner with regional and local governments to streamline ZEV infrastructure installation processes, as well as require the Governor’s Office of Business and Economic Development (GO-Biz) to publish a Plug-in Charging Station Development Guidebook and update the 2015 Hydrogen Station Permitting Guidebook.  
Additional proposed investments include:
  • $235 million in FY 2018‒19 for the California Energy Commission to accelerate investments in hydrogen and electric charging stations; and
  • $200 million of Cap and Trade dollars annually through 2025 for Clean Vehicle Rebates for residents who purchase or lease new light-duty ZEV and plug-in hybrids, including $25 million for low-income consumer incentives.   
Cap-and-Trade Expenditures
 
Governor Brown also released a plan to spend $1.25 billion in Cap-and-Trade revenues on many state priorities. Last year’s plan to extend the program (AB 398, E. Garcia, 2017) also identified new priorities for spending revenues, including air toxic and criteria air pollutants, low and zero-carbon transportation, and sustainable agricultural practices. Among the programs from which cities have historically benefitted, the Governor proposes to spend funds on waste diversion, the Transformative Climate Communities Program, and healthy forests and local fire response.
 
The full expenditure plan is in the chart below and additional details may be found in the climate change plan.
 

 
Natural and Working Lands, Fires, and Tree Mortality
 
Governor Brown proposes a series of actions related to natural and working lands, forests, and tree mortality to increase carbon sequestration and storage and improve resilience.
 
These include:
  • By September 2018, the California Air Resources Board (CARB), working with the Natural Resources Agency and the Department of Food and Agriculture, would create targets for GHG emission reductions from natural and working lands;
  • Develop a Forest Carbon Plan to ensure forests are resilient and reliable long-term carbon sink; and
  • Convene an expert task force of scientists and forest practitioners to review forest management and reduce fire threats; and
  • Stakeholder meetings with local government and private industry to address land use and infrastructure issues associated with the 2017 fires.


 
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