California Climate Investments Cumulative Outcomes as of May 31, 2021
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, over $15 billion dollars have been appropriated by the Legislature to State agencies implementing GHG emission reduction programs and projects
Programs
State agencies receiving appropriations, referred to as “administering agencies,” develop and implement a suite of programs within or across three priority areas:
Natural Resources & Waste Diversion
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. In 2020, Governor Newsom signed an executive order with a state goal to conserve 30% of California’s lands and coastal waters by 2030.
Transportation & Sustainable Communities
California’s transportation sector represents 41 percent of GHG emissions statewide. SB 862, enacted by the Legislature and Governor Brown in 2014, and SB 200, enacted by the Legislature and Governor Newsom in 2019, established continuous appropriations of 65 percent of the available GGRF proceeds for certain transportation and sustainable communities programs, including High-Speed Rail, local and regional public transit, safe and affordable drinking water, and affordable housing projects. In addition, annual appropriations are supporting the Low Carbon Transportation Program.
Clean Energy & Energy Efficiency
California’s energy sector—including use of electricity and natural gas—accounts for about a quarter of the State’s near-term GHG emissions. In 2015, Governor Brown signed SB 350, which requires the State to double building energy efficiency and increase renewable energy to 50 percent by 2030. As further directed by SB 100, which was signed by Governor Brown in 2018, California’s long-term goal is to achieve carbon neutrality by 2045.
Appropriations
The Legislature appropriates money from the GGRF to administering agencies for programs that facilitate the reduction of GHG emissions and further the purpose of AB 32. These appropriations take the form of continuous appropriations enacted in Senate Bill (SB) 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014), SB 200 (Monning, Chapter 120, Statutes of 2019), SB 901 (Dodd, Chapter 626, Statutes of 2018), and annual appropriations through the Legislature’s yearly budget deliberations.
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, such as waste diversion and affordable and sustainable communities.
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.
In FY 2017-18, the Legislature and Governor appropriated over $2.7 billion for existing programs and expanded the scope of the investments to include community air protection, renewable energy in the agricultural sector, climate readiness adaptation, fire protection, and conservation easements.
In FY 2018-19, the Legislature and the Governor appropriated over $1.5 billion for new and existing programs.
In FY 2019-20, the Legislature and the Governor appropriated another $1.5 billion for new and existing programs and expanded the scope of the investments to include safe and affordable drinking water.
In FY 2020-21, the Legislature and the Governor appropriated nearly $0.5 billion to support baseline state operations, training and workforce development, and fire prevention during the COVID-19 pandemic.
Detailed appropriation and status information
More information about the Cap-and-Trade auction proceeds investment plan
