Thursday, January 7, 2016

Governor Brown Releases New Cap and Trade Expenditure Proposal

Includes $20 million for IBank CLEEN program


California Governor Jerry Brown has released proposed 2016-17 state budget, including a new expenditure plan for Cap and Trade funds.  The budget includes $20 million to enhance an energy finance program at the state Infrastructure and Economic Development Bank.

The Governor's budget will now go to the legislature for review and possible revision before it is adopted in June.

According to the Governor's budget documents (available here),

The $3.1 billion Expenditure Plan reflects the balance of auction proceeds that were not appropriated in 2015‑16, as well as the expenditure of projected proceeds in 2016‑17. This Plan is consistent with the second triennial investment plan for Cap and Trade auction proceeds and was informed by public comments received through 11 public meetings and workshops as part of the development of the second investment plan. The proposed plan expends at least 10 percent of the proceeds within disadvantaged communities and at least 25 percent of the proceeds to projects that benefit those communities
An overview of the proposed expenditures is included in the following chart:

Source:  Summary of proposed budget, page 99 (source here)

Within the budget proposal is "$20 million for the California Infrastructure and Economic Development Bank (I Bank) to leverage private investments in energy efficiency and renewable energy projects in public buildings that will save money by using less energy. These innovative financing mechanisms will accelerate the utilization of clean energy projects throughout the state."

The $20 million will be used in the new IBank CLEEN program, previously described in California Green Finance here.  It is expected that further details on how the funds will be used will be provided soon.

In addition to the IBank proposal, Governor Brown is proposing the following "significant adjustments" to existing expenditures:


• $100 million for the Strategic Growth Council to administer the Transformational Climate Communities Program to support local climate actions in the state’s top 5 percent of disadvantaged communities. Funding will support projects that integrate multiple, cross‑cutting approaches to reduce GHG emissions. The program will combine climate investments within a local area for catalytic impact, including investments in energy, transportation, active transportation, housing, urban greening, land use, water use efficiency, waste reduction, and other areas, while also increasing job training, economic, health and environmental benefits.


• $100 million for the Department of Resources, Recycling and Recovery to provide financial incentives for capital investments that expand waste management infrastructure, with a priority in disadvantaged communities. Investment in new or expanded clean composting, anaerobic digestion, fiber, plastic, and glass facilities is necessary to divert more materials from landfills. These programs reduce GHG emissions and support the state’s 75‑percent solid waste recycling goal. 

• $150 million for CAL FIRE to support forest health programs that reduce GHG emissions through fuel reduction, reforestation projects, pest and diseased tree removal, and long‑term protection of forested lands vulnerable to conversion. Funds will also support biomass energy generation projects.

• $30 million for the Department of General Services to implement Executive Order B‑18‑12 that requires state agencies to reduce GHG emissions by 10 percent by 2015 and 20 percent by 2020. The Department will assist state agencies in the construction of zero‑net‑energy state buildings, reduction of grid‑based energy purchases at state‑owned buildings, and the use of clean, on‑site power generation, such as fuel cells, solar photovoltaic, solar thermal, and wind power generation 

• $15 million General Fund on a one‑time basis for the Energy Commission to initiate research on innovative and emerging technologies for low carbon transportation fuels. The Energy Commission will engage experts from state universities, research laboratories, other California‑based research institutions, and key private sector partners. The results will inform California climate policy and allow planning to continue to be based on science. 

1 comment:

  1. Would appear the Forest & Agriculture industry could take advantage of this portion of the Cap & Trade policy.

    With the closure of so many Biomass to Electricity generating plants these monies might bring about an answer to the lack of outlets for clean biomass.

    Am I a dreamer!

    ReplyDelete