California regulators approved changes to the state’s cap-and-invest program in May meant to limit increases in fuel and electricity costs. But climate advocates warned the decision could reduce funding for key climate programs paid for through the state’s Greenhouse Gas Reduction Fund, many of which also address affordability issues.
The California Air Resources Board (CARB) voted to revise the cap-and-invest program, which requires large polluters to purchase allowances for their emissions through the state. Proceeds from allowance auctions are used to fill the fund. But with the aim of reducing greenhouse gas emissions 85% by 2045, the number of allowances — and fund dollars — have been steadily reduced, or capped, by the state’s climate goals.
Those dollars have already helped fund new transit improvements and affordable housing in Sacramento. Spokesperson Jessica Gonzalez said the grants have helped Sacramento Regional Transit, or SacRT, expand its rail service, purchase new light rail vehicles and build transit-oriented housing.
Affordable Housing and Sustainable Communities Program
The Affordable Housing and Sustainable Communities (AHSC) Program is one of several that uses state climate dollars to support projects connecting affordable housing with public transit and pedestrian infrastructure. The program has awarded billions of dollars across the state since it launched in 2014…