Governor Signs Plan to Spend $1.5B in Cap-and-Trade Dollars

Clean Transportation Receives $900 Million from Cap-and-Trade Revenue 

California Governor Jerry Brown has signed two bills that outline a plan to spend $1.5 billion on environmental initiatives using money from the state’s recently renewed cap and trade program.  The bills were signed on Saturday, hours after lawmakers approved the plan to spend most of the money on incentives and rebates to promote a cleaner vehicle fleet.

$900 Million of the funds will be allocated to clean transportation projects – a substantial increase compared to previous years ($680 million for the last four years combined)

This amount is on top of the $900 million allocated according to formula, including $375 million for the State High-Speed Rail Project.

California has set an ambitious goal to have 1.5 million zero-emission vehicles on the road by 2025. Lawmakers hope the rebates will help close the price gap between traditional and electric vehicles.

Here is a breakdown of how the Low Carbon Transportation funds will be spent: 

  • $140M – Clean Vehicle Rebate Project (consumer rebates for electric or fuel cell passenger cars) 
  • $140M – Freight Equipment Advanced Demonstration; Pilot Commercial Deployment Project
  • $100M – Enhanced Fleet Modernization Program and Plus Up Project (low-income assistance for vehicle scrap and replace); School Buses; Light-Duty Equity Pilot Projects (e.g. electric carsharing in disadvantaged communities)
  • $180M – Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project ($35M must go to zero-emission buses)
  • $85M – Agricultural Diesel Engine Replacement and Upgrades 

Additionally, $255 Million will be allocated for AB 617 Implementation:

  • $250M – Community Air Protection (95% to South Coast, San Joaquin Valley, and Bay Area Air Districts; 5% to other Air Districts via CARB) 
  • $5M – Technical Assistance Grants to Community Organizations (i.e. consultants/experts) 

   

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Lauren Michele, Principal / Founder, Policy in Motion
 
Policy in Motion offers planning practitioners, policymakers, and public agencies an understanding of how to integrate sustainability policy into transportation infrastructure and land use decisions. Lauren Michele’s 2011 book, “Policy in Motion: Transportation Planning in California after AB 32” explores the State’s evolving policies for sustainable living through transportation planning. Lauren’s 2012 film documentary, “Policy in Motion: Growing Beautiful Communities” continues to explore how an integrated approach to transportation planning and funding based on “People-Oriented Development” (POD) can improve community quality of life while meeting California’s environmental and economic goals. Policy in Motion’s book and film are available for purchase online at Barnes & Noble, Amazon, and www.policyinmotion.com.