California Passes Spending Plan for Cap-and-Trade Revenue
On 31 August, the last day of the legislative session, the Californian State Assembly passed Assembly Bill 1613 (AB 1613), which allocates USD 900 million (ca. € 800 million) in unspent revenue from the California Cap-and-Trade program. Governor Brown signed it into law on 14 September. All the revenue from allowances auctioned by the state go into the Greenhouse Gas Reduction Fund (GRRF), of which 60% is automatically allocated to projects such as sustainable housing and public transportation. AB 1613 focuses on the remaining 40%, which is discretionary and requires legislative approval before such funds can be allocated. Under the bill, revenues will be directed towards disadvantaged communities, low-carbon transportation, urban pollution and energy efficiency projects.