Dive Brief:
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California legislators have approved a last-minute deal to use $900 million from the state’s cap-and-trade program to fund environmental and clean energy projects across the state.
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The funds will be spent on subsidies for electric cars, rail programs, urban green spaces and pollution abatement in low-income communities.
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California’s cap-and-trade program has raised $1.4 billion that has been locked in a two-year stalemate over allocation.
Dive Insight:
Late last month, California lawmakers passed S.B. 32, which extends the state’s greenhouse gas emissions targets to 2030. Some legislators pushed back on the GHG extension, arguing that their constituents were not seeing enough benefits.
This week, in the last minutes of the legislative session, Gov. Jerry Brown (D) reached a deal to fund greenhouse gas programs using proceeds from the state’s cap-and-trade program. The new funding plan includes several programs aimed at low-income districts.
Some $80 million of the total is earmarked for rebates that help low-income Californians buy cleaner cars. There is also $140 million for "transformative climate communities," a program to create grants for local renewable energy, park and green space projects, and affordable housing and transport.
The funds will also be spent on the Clean Vehicle Rebate Program ($133 million), the Transportation Agency for the Transit and Intercity Rail Program ($135 million), and the Department of Transportation’s Active Transportation Program ($10 million). A total of $80 million is targeted for forestry and forest fire prevention, $20 million will go to weatherization and renewable energy projects, and $2 million is slated for the Office of Planning and Research for the Strategic Growth Council to provide technical assistance to disadvantaged communities.
The $900 million deal, Greenwire notes, is less than the $1.2 billion in funding sought by Assembly Speaker Anthony Rendon (D) in a proposal last week, but he and the governor settled on a plan to save more of the funds. The most recent California cap-and-trade auction on Aug. 21 disappointed many observers, with less than 40% of available pollution allowances sold.