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Cap-and-Trade Auction Revenue Legislation on the Move

May 2, 2013
The League encourages cities to submit letters of support for AB 416 (Gordon) and AB 574 (Lowenthal), two bills that would appropriate Cap-and-Trade auction revenues to local agencies, including cities.
 
AB 416 (Gordon) creates the Local Emission Reduction Program and allocates non-transportation-related auction revenues to local governments for grants and other financial assistance to develop and implement greenhouse gas (GHG) emission reduction projects.  
 
AB 574 (Lowenthal) creates the Sustainable Community Infrastructure Program to provide funding from the transportation-related Cap-and-Trade revenues for integrating transportation and public infrastructure investments that will result in reduced GHG emissions. The League is part of a large coalition supporting this bill. More information is on the Transportation Coalition for Livable Communities website.
 
The California Department of Finance and Air Resources Board in April released the first three-year investment plan for auction proceeds. For more, please see “Draft Cap-and-Trade Auction Proceeds Investment Plan Released, CA Cities Advocate, April 19, 2013. As expected, reducing transportation emissions will be a top priority. Electricity and commercial/residential energy are the second largest contributor of GHG emissions. Encouraging energy efficiency projects, including sustainable agriculture practices, forest management and urban forestry and the diversion of organic waste to bioenergy, are other areas to be examined.
 
Support Letters Needed
 
These bills are expected to become part of the larger budget discussions to take place in May and June. Please submit letters no later than June 1. Sample support letters can be found on the League’s website at www.cacities.org/billsearch by typing "AB 416" or "AB 574" into the search function.


 
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