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Home > News > News Articles > 2017 > September > Cap-and-Trade Expenditure Legislation Signed
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Cap-and-Trade Expenditure Legislation Signed

September 20, 2017
On Sept. 16, Gov. Jerry Brown signed two bills that spend Cap-and-Trade revenues in FY 2017–18.
Revenues from Cap-and-Trade auctions are deposited into the state’s Greenhouse Gas Reduction Fund (GGRF), which have been appropriated on an annual basis. AB 109 (Ting) and AB 134 contained this year’s GGRF appropriations.
The Legislature passed and the Governor signed legislation in July extending Cap-and-Trade system through 2030. One of the three-bill extension package also set out new priorities for spending GGRF funds. Major funding under this plan is directed to mobile source emissions reductions and implementing the state’s new air quality program enacted along with Cap-and-Trade extension. 
Cities stand to benefit from a number grant programs funded with Cap-and-Trade revenues. Below are some of the highlights for local governments of the $1.5 billion expenditure plan:
  • $26 million — urban greening programs (Natural Resources Agency)
  • $20 million — urban forestry programs (CalFIRE)
  • $10 million — Transformative Climate Communities Program (Strategic Growth Council)
  • $220 million — fire prevention and forest health (CalFIRE)
  • $40 million — waste diversion (CalRecycle)
  • $18 million — low-income multifamily, solar, and farmworker weatherization programs (Department of Community Services and Development)
  • $180 million — HVIP Hybrid and Zero Emission Truck and Bus Voucher Incentive Program (Air Resources Board)
  • $140 million — clean vehicle rebate program (Air Resources Board)
  • $100 million — Enhanced fleet modernization, plus-up pilot program, replace school buses, clean vehicle rebates for low income (Air Resources Board)
In addition, $900 million of the available GGRF funds will automatically be spend on continuous appropriations for High Speed Rail, the Affordable Housing and Sustainable Communities program, the Transit and Intercity Rail Capital program, and Low Carbon Transit Operations.

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