Made public on April 16, this draft investment plan is part of the Cap-and-Trade program established pursuant to the California Global Warming Solutions Act of 2006 (AB 32). AB 32’s primary objective is to reduce greenhouse gases (GHG) emission in California to 1990 levels by 2020 and continue to seek reductions beyond 2020.
The draft investment plan provides a detailed outline of the Gov. Jerry Brown’s investment priorities over the next three years. As expected, particular emphasis has been placed on distributing auction proceeds to existing programs that focus on the two largest GHG emitters, transportation and electricity and commercial/residential energy.
The draft investment plan also includes a plan for transportation-related Cap-and-Trade revenues. The plan would send revenues to transportation-related infrastructure, livable communities, active transportation, and rail modernization.
ARB has scheduled a hearing on Thursday, April 25, to discuss and receive public input on the draft investment plan.
Additionally, the draft investment plan highlights several key energy efficiency and residential weatherization programs, most notably the Property Assessed Clean Energy program and the Weatherization Assistance Program. These two existing programs have played an important role in achieving greater energy efficiency and reducing GHGs emissions.
In addition to the draft investment plan, the League would also like to draw attention to two important Cap-and-Trade pieces of legislation supported by the League:
AB 416 (Gordon) that creates the Local Emission Reduction Program and allocate monies to local governments for grants and other financial assistance to develop and implement GHGemission reduction projects; and
AB 574 (Lowenthal) that creates the Sustainable Communities Infrastructure Program and allocate funding from the transportation-related Cap-and-Trade revenues to integrate transportation and public infrastructure investments to reduce GHG emissions.