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Michele something from nothing TCS 2015


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Lauren Michele, Policy in Motion

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Michele something from nothing TCS 2015

  2. 2. cap & trade 101 California Global Warming Solutions Act of 2006 (AB 32) Requires a declining cap in GHG emissions to reach 1990 levels by 2020 CARB creates a declining number of allowances for GHGs  Allowances auctioned off quarterly starting in 2012 All major sources of GHGs must submit allowances equal to emissions produced Current market price is $12.50 per ton
  3. 3. utilities 2012 transport 2015 industry 2012 ~$1.5B/yr ~$2.5 B/yr GGRF GHG Reduction Fund Ratepayers reduced energy bills transportation 60% permanent energy/water year-to-year nat resources year-to-year Who Pays? Who Benefits?
  4. 4. cap & trade 101 Auction Proceeds Must be used to further the purposes of AB 32 Utility allowances are used to lower costs to consumers Remainder of revenue to Greenhouse Gas Reduction Fund (GGRF)
  5. 5. cap & trade 101 GGRF - Greenhouse Gas Reduction Fund $2 to $4 Billion per year 60% permanently dedicated to transportation Remainder allocated each year
  6. 6. GHGs and DACs All cap and trade funding programs are required to reduce GHG emissions. Additionally, SB 535 (de León, 2012) requires that 25 percent of all non-utility cap and trade revenues be used to benefit disadvantaged communities (DAC), and 10 percent to be spent within the most disadvantaged. Individual cap and trade programs may exceed or be less than the 25% requirement for DACs, but on average the programs as a whole must meet the statewide requirement.
  7. 7. CalEnviroScreen The determination of DAC status is based on the CalEnviroScreen, a model administered by CalEPA that combines economic data with information on pollution and other environmental impacts
  8. 8. GGRF Programs 2014-15 State Budget provided $832 Million 2015-16 State Budget allocated $2.0 Billion Programs administered by various state agencies
  9. 9. 2015-16 GGRF Programs TRANSPORTATION $400M Housing and Community Development – Affordable Housing & Sustainable Communities $200M California Transportation Commission – Transit & Intercity Rail Capital $100M Caltrans – Low Carbon Transit Operations $500M High Speed Rail Authority – High Speed Rail $90M* California Air Resources Board – Low Carbon Transportation ($200M in FY 2014-15; subject to annual appropriation)
  10. 10. Affordable Housing & Sustainable Communities Program - $400M 20% of total funds ($2 Billion in 2015-16) 50% for Disadvantaged Communities Administered by Department of Housing & Community Development Projects must be within SB 375 Sustainable Communities Strategy Projects must be through environmental review process Competitive Program to fund two kinds of projects: TOD+Affordable Housing (>50%) Integrated Connectivity Projects (infrastructure + program/planning)
  11. 11. Transit & Intercity Rail Capital - $200M 10% of total funds 25% for Disadvantaged Communities Administered by California Transportation Commission Competitive program for rail and bus transit operators Funds capital improvements that integrate state and local rail and other transit systems, and those that provide connectivity to the high‐speed rail system.
  12. 12. Low Carbon Transit Operations - $100M 5% of total funds 50% for Disadvantaged Communities. Administered by Caltrans Formula-based program for transit operators and RTPAs (not competitive) Provides operating assistance for transit ridership
  13. 13. High Speed Rail - $500M 25% of total funds Administered by California High Speed Rail Authority First year funds included environmental planning, permitting, and design work for the first phase of the California High Speed Rail Project (which would extend from San Francisco to Orange County) Funds for right-of-way acquisition and construction of the initial operation segment in the Central Valley
  14. 14. Low Carbon Transportation Annual appropriations; $230M in 2014-15; $90* in 2015-16 Funds a variety of incentive programs including: Zero Emission Vehicle incentives Car sharing in disadvantaged communities ZEV buses and trucks Freight and other pilot projects and programs
  15. 15. Where are we now? Pressure to increase funding for road maintenance from gas tax and/or cap and trade revenue (current special session in Legislature) Concern about geographical distribution of funds (e.g. DAC locations mainly in Central Valley) Complexity of program guidelines and GHG methodology Measuring GHGs continues to be challenging
  16. 16. Questions? Lauren Michele Principal/Founder