Cap-and-Trade Auction Proceeds Investment Plan Update

Sustainable Napa County is one of over 90 stakeholder groups from around the state that signed an open letter to Governor Brown recommending how cap-and-trade auction proceeds should be addressed in the upcoming January 2014 draft budget.
The groups urged the Governor to do three things: abstain from loaning future auction proceeds to the General Fund, develop a detailed plan for spending the auction revenue on climate protection activities, and reinvest the money already loaned to the General Fund back into climate-protection activities.

In 2012, the Legislature and Governor Brown established the Greenhouse Gas Reduction Fund to receive proceeds from California’s cap-and-trade auctions and to provide the framework for how the auction proceeds will be administered.  

A three-year investment plan identifies ready-to-go projects and programs that reduce GHGs, support local economies, and create jobs. Priorities for investment emphasize the transportation and energy sectors, from which large reductions in GHG emissions are possible. Other areas for investment include sustainable agriculture practices, including the development of bioenergy, forest management, and urban forestry, and the diversion of organic waste to bioenergy and composting. SNC provided comments last spring after reviewing the investment plan and taking part in the public workshop regarding priorities for investment.  

However, in May 2013 the funds were transferred to the General Fund with assurances of repayment to the GHG Reduction Fund so the investment plans can be realized next year.  

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