Cap-and-trade deal reached, heads to Gov. Brown for approval

los angeles pollutionGov. Jerry Brown and legislators reached an agreement on Wednesday on what to do with around a billion dollars of cap-and-trade revenue.

The deal was announced earlier in the day and was approved by dinner after a longstanding battle between legislative leadership, who had a long list of ways to spend the money, and Brown, who had yet to give his blessing.

“California’s combating climate change on all fronts and this plan gets us the most bang for the buck,” Brown said in a statement when the deal was announced. “It directs hundreds of millions where it’s needed most – to help disadvantaged communities, curb dangerous super pollutants and cut petroleum use – while saving some for the future.” 

Forty percent of cap-and-trade revenue will go to a general fund for programs to reduce greenhouse gas emissions. The rest is doled out with 25 percent going to high-speed rail, 20 percent for affordable housing and sustainable communities grants, 10 percent for intercity rail capital projects and 5 percent for low-carbon transit projects.

Low revenue and legality

The spending plan comes at an interesting time for the cap-and-trade program, which allows businesses to purchase at auction GHG emission credits to exceed state-imposed limits. The money is to be spent on programs that reduce GHG emissions.

The last two quarterly auctions have fallen flat, greatly missing revenue targets, and the program itself faces legal challenges as opponents argue it’s an illegal tax.

Earlier this week, the Legislature approved a measure to add an oversight committee of the California Air Resources Board. CARB created the cap-and-trade program.  

The deets

Specifically, the plan passed Wednesday allocates the funding as follows:

  • $368 million to the Air Resources Board, including:
    • $133 million to the Clean Vehicle Rebate Program.
  • $80 million to the Enhanced Fleet Modernization Program, Plus-Up Pilot Project and up to $20 million of this amount may be used for other light-duty equity pilot projects.
  • $150 million for heavy-duty vehicles and off-road equipment investments.
  • $5 million for black carbon wood smoke programs.
  • $140 million to the Office of Planning and Research for the Strategic Growth Council to provide transformative climate communities grants.
  • $135 million to the Transportation Agency for the Transit and Intercity Rail Program.
  • $80 million to the Natural Resources Agency for the Urban Greening program.
  • $65 million to the Department of Food and Agriculture, including:
    • $50 million for the early and extra methane emissions reductions from dairy and livestock operations.
  • $7.5 million for the Healthy Soils Program.
  • $7.5 for the State Water Efficiency and Enhancement Program (SWEEP).
  • $40 million to the Department of Forestry and Fire Protection, including:
    • $25 million for the Healthy Forest Program.
  • $15 million for urban forestry programs.
  • $40 million to the Department of Resources Recycling and Recovery for waste diversion and greenhouse gas reduction financial assistance.
  • $20 million to the Department of Community Services and Development for weatherization and renewable energy projects.
  • $10 million to the Department of Transportation for the Active Transportation Program.
  • $2 million to the Office of Planning and Research for the Strategic Growth Council to provide technical assistance to disadvantaged communities.


Write a comment
  1. Art
    Art 31 August, 2016, 21:38

    High speed rail is a failure. Our busing system is a mess. In our day and age, people need to get to work quickly and efficiently. However, cars are the one that get the job done. High speed rail will cost us several billions of dollars and our public busing needs to return back to the Red Car system. It’s great that the environment is an issue, but this money is a waste. Cap and trade will also lead us to nowhere with all the penalization of American businesses that will have to pollute regardless of what industry they are in.

    Reply this comment
  2. Queeg
    Queeg 31 August, 2016, 23:05


    Research the Plutocrats running the deserving organizations in the article. All former chronies……om my…..

    Reply this comment
  3. Ron
    Ron 1 September, 2016, 04:27

    The emissions crusaders inclusive of Governor Brown and Tom Steyer are so focused on the crusade to shut down the California oil industry that they have demonstrated their lack of understanding of basic Economics 101. With California being an energy island with the Sierra Mountains on one side and the Pacific Ocean on the other side, there are no pipelines “into” the state from the rest of the country. By shutting down the oil industry, they would be depriving the airports of the 10,000,000 gallons of jet fuel required every day to keep them running smoothly, resulting in an international economic crisis. In addition, the 97% of our 32 million vehicles that run on conventional transportation fuels would be deprived of the 40,000,000 gallons of fuel being consumed every day, also resulting in a world economic crisis. All the above manufactured fuels are now manufactured in-state by the few manufacturers that are left in California. The emissions crusade extension for another decade to 2030 is NOT a hit on big oil, it’s a hit on the California and World economies.

    Reply this comment
  4. Spurwing Plover
    Spurwing Plover 1 September, 2016, 09:16

    Moonbeam is a pathetic excuse for a govenor californias #1 worst and the idiots who voted for him i hope they end up paying higher utilily bills when Moonbean leaves his hoofprint on this dumb bill

    Reply this comment
  5. Mr. Pickle
    Mr. Pickle 1 September, 2016, 10:32

    Well, there must be a reason why the Dems use the Jackass as there mascot.
    Oh, the above story describes it very nicely.
    Note the $80 million for greening of urban areas, while State Parks has a $1.25 BILLION need for maintenance backlogs…….
    Uh, Duh……………..

    Reply this comment
  6. Queeg
    Queeg 1 September, 2016, 16:16


    In Socialist paradises the masses huddle in one room enjoying the rich pleasure of one 25 watt light.


    Reply this comment
  7. Truthafuss
    Truthafuss 1 September, 2016, 17:36

    That is one sick group of worthless human beings.

    Reply this comment
  8. DC1
    DC1 1 September, 2016, 19:05

    More candy for everyone!!

    Reply this comment
  9. eck
    eck 7 September, 2016, 19:02

    Give it back! To us. We paid for it in higher prices. Tax credit , anyone? The stupidity of this “cap-and-trade” “theater” just burns.

    Reply this comment

Write a Comment

Leave a Reply

Tags assigned to this article:
cap-and-tradeJerry Brown

Related Articles

Former state biologist challenges global warming status quo

Editor’s note: This article originally incorrectly said that the Jim Steele who wrote the book mentioned below is the same

Gov. Brown signs captive orca ban

  Capping off a protracted political battle focused around animal rights and aquatic entertainment at SeaWorld, the San Diego’s longstanding tourist attraction, Gov.

John Chiang Blazes Future of CA Politics

JUNE 27, 2011 By JOHN SEILER As they said in old-school physics, nature abhors a vacuum. Passed last November, Proposition 25