About California Climate Investments
Proceeds from the Cap-and-Trade Program facilitate comprehensive and coordinated investments throughout California that further the State’s climate goals. These investments support programs and projects that reduce greenhouse gas (GHG) emissions in the State and also deliver major economic, environmental, and public health benefits for Californians, including meaningful benefits to the most disadvantaged communities.
Communities where investments occur are realizing a wide range of benefits, including: increased affordable housing opportunities; improved mobility options through transit, walking, and biking; cleaner air through zero-emission vehicles; job creation, energy and water savings; and greener, more vibrant communities.
The State’s portion of the Cap-and-Trade auction proceeds are deposited in the Greenhouse Gas Reduction Fund (GGRF), and used to further the objectives of the California Global Warming Solutions Act of 2006 (Assembly Bill 32 (AB 32); Núñez, Chapter 488, Statutes of 2006).
To date, nearly $3.4 billion has been appropriated by the Legislature to State agencies implementing GHG emission reduction programs and projects.
State agencies receiving appropriations, referred to as “administering agencies,” develop and implement a suite of programs within three priority areas:
California’s natural and working lands comprise three-quarters of the land base statewide. These lands provide food, fiber, and a variety of ecosystem services including important opportunities for climate mitigation that reduce GHG emissions from wildfire and land conversion, and store carbon in biomass and soils. More information can be found here.
California’s transportation sector represents 37 percent of GHG emissions statewide. SB 862, enacted by the Legislature and the Governor in 2014, established continuous appropriations of 60 percent of the available GGRF proceeds for certain transportation and sustainable communities programs, including High-Speed Rail, local and regional public transit, and affordable housing projects. In addition, annual appropriations are supporting the Low Carbon Transportation Program. More information can be found here.
California’s energy sector—including use of electricity and natural gas—accounts for about half of the State’s near-term GHG emissions. In October 2015, the Governor signed SB 350, which requires the State to double building energy efficiency and increase renewable energy to 50 percent by 2030. More information can be found here.
The Legislature appropriates money from the GGRF to administering agencies for programs that result in GHG emission reductions and further the purpose of AB 32 through continuous appropriations enacted in Senate Bill (SB) 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014), and through the Budget Act.
- The first appropriations in Fiscal Year (FY) 2013-14 provided over $70 million to programs.
- Subsequent appropriations in FY 2014-15 included over $850 million, resulting in a significant expansion of the number and types of California Climate Investments.
- In FY 2015-16, the Legislature and Governor appropriated approximately $1.3 billion, which provided funding to continue a subset of programs established in the previous fiscal years.
- In FY 2016-17, the Legislature and Governor appropriated over $1.1 billion for existing and new programs.
The Governor’s proposed Budget for FY 2017-18 includes $2.2 billion in funding from the GGRF. The Budget proposes that this funding be allocated after legislation confirming CARB’s authority to administer the Cap-and-Trade Program beyond 2020 is enacted through a two-thirds vote. To view the Governor’s proposed Budget for FY 2017-18, click here.