California’s cap-and-trade program is facing a proposed overhaul that would rebrand it as cap-and-invest. Critics warn the changes would expand free pollution permits for oil companies and other major emitters. The California Air Resources Board is expected to vote on allocating $4 billion in new free emission permits, with about half slated for the fossil fuel industry, in exchange for commitments to invest in clean energy. The stated aim is to reduce gas costs during a period of nationwide price spikes. Cap-and-trade proceeds fund the Greenhouse Gas Reduction Fund, which supports climate-related transportation investments, active transportation, affordable housing near transit, and high-speed rail. High-speed rail is guaranteed $1 billion annually through 2045, with additional funds set aside for legislative priorities, leaving less for local housing and transit if permits are given away.
"A looming overhaul of California's cap-and-trade program is raising alarm among transit advocates, affordable housing organizations, and environmental justice groups, who warn the state could weaken a key climate funding source at a moment when cities already face transit funding crises and worsening housing pressures."
"At the center of the debate is a proposal to reshape the state's carbon market, commonly known as "cap-and-trade" but rebranded as "cap-and-invest" by Governor Gavin Newsom. The program would be retooled in ways critics say would expand free pollution permits for oil companies and other major emitters. At the end of this week, the California Air Resources Board is expected to vote on a proposal to allocate $4 billion in new free emission permits to companies with half slated for the fossil fuel industry in exchange for commitments to invest in clean energy."
"The Greenhouse Gas Reduction Fund - funded and budgeted annually by cap-and-trade proceeds - has become a major financing stream for climate-related transportation investments statewide. Transit agencies, active transportation programs, affordable housing near transit, and the state's high-speed rail project all rely heavily on cap-and-trade revenues. Under legislation approved last year, high-speed rail is guaranteed $1 billion annually from the carbon market through 2045, with another $1 billion per year set aside for "legislative priorities" i.e. the state's general fund."
#california-cap-and-trade #cap-and-invest #transit-funding #affordable-housing #environmental-justice
Read at Streetsblog California
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