Cap-and-trade revenue bills not moving

By CMTA Staff

Capitol Update, May 30, 2013 Share this on FacebookTweet thisEmail this to a friend

A handful of Assembly bills that would direct the use of cap-and-trade auction revenue failed to move out of appropriations committees last week:

  • AB 574 (Bonnie Lowenthal, D-Long Beach) Sustainable Communities Strategies
  • AB 1023 (Susan Eggman, D-Stockton) GHG Recycling and Composting Program
  • AB 1051 (Raul Bocanegra, D-Los Angeles) Housing Near Transit
  • AB 1375 (Ed Chau, D-Monterey Park) Clean Technology

CMTA opposed the bills as premature and not in accordance with state law governing the raising and spending of revenues through cap and trade. A court hearing on the legality of raising revenue in the cap-and-trade program will be heard on August 28. 

In 2012, the Legislature passed and Governor Brown signed into law three bills – AB 1532(Chapter 807, John Pérez, D-Los Angeles), Senate Bill (SB) 535(Chapter 830, Kevin de León, D-Los Angeles), and SB 1018(Chapter 39, Budget and Fiscal Review Committee,) – that establish the Greenhouse Gas Reduction Fund to receive auction proceeds and to provide the framework for how the auction proceeds will be administered.  

The Administration has completed a three-year investment plan for the cap-and-trade auction proceeds. The investment plan identifies the State's greenhouse gas emission reduction goals and priority programs for investment of proceeds to support achievement of those goals. The plan was posted on CARB’s website here: http://www.arb.ca.gov/cc/capandtrade/auctionproceeds/auctionproceeds.htm

As we reported on May 16, the Governor’s May Revise proposes to loan cap-and-trade revenues to the general fund for one year. The legislative budget committee will consider the fate of the Governor’s proposal beginning next week.

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