The state Senate Budget Subcommittee held an information hearing on Wednesday on the Senate and Assembly Budget proposals to permanently allot the state’s funds from the Assembly Bill 32 Cap and Trade program.  Both Senator Darrell Steinberg and Assemblyman Kevin DeLeon presented their proposals to a packed room of stakeholders, each detailing how the funds would be allocated under their respective schemes. 

The Senate proposal allocates 25 percent of Cap and Trade funds going forward to transit projects, and 20 percent to high speed rail.  In contrast with the Governor’s proposal, which allots roughly 15 percent of the funds to resources projects, the Senate version only proposes 7 percent to go to forestry, water, and solid waste projects.  The Assembly plan allots a large block of money, approximately 38 percent of the total, to state agency projects of all types, including high speed rail, forestry/fire management, solid waste, and wetlands restoration projects.  State agencies would have to compete for the funds through the Strategic Growth Council.  The Assembly proposes an additional 38 percent to sustainable communities and affordable housing projects, in contrast to the Senate’s proposed 20 percent.  

While the public was allowed to comment at the hearing, there was little discussion by the committee of any recommendations other than those offered by the Senate and Assembly.  RCRC has long advocated for more spending on forest management, including funding projects by the U.S. Forest Service, as well as using Cap and Trade funds for Williamson Act subventions.  The proposals now move to the Budget Conference Committee for the two houses to hammer out a deal and to reconcile with the Administration.

For additional information, please contact RCRC Regulatory Affairs Advocate Staci Heaton at (916) 447-4806 orsheaton@rcrcnet.org.