The 2018-19 State Budget Package allocates $1.4 billion from the state’s Cap-and-Trade auction proceeds, which is an uptick from the $1.25 billion in the Governor’s January proposed Budget due to higher than expected revenues over the past year.  The final 2018-19 Cap-and-Trade Expenditure Plan includes significant investments in program areas vital to rural communities, including $160 million for forest health and restoration projects, $30 million for prescribed fire and other fuels reduction projects to carry out the goals of the Forest Carbon Plan, $20 million for Northern, Coastal, and Southern California Regional Forest Health Projects, and $25 million for local fire response.  

While the $160 million was originally proposed by the Governor in January, the additional forest health funds were added by the Legislature to aid with wildfire prevention and forest restoration programs.  The State Budget Package also contains $25 million for waste diversion programs, which is an increase of $5 million over the Governor’s January proposed Budget, but a $15 million decrease from the 2017-18 State Budget.

RCRC will continue to advocate for allocation of auction proceeds to these and other programs and projects that benefit rural communities.  RCRC will also continue to pursue a change in the current definition of “disadvantaged communities” to disseminate Cap-and-Trade proceeds, as the current definition excludes most rural communities from receiving these funds.  RCRC will also continue seeking targeted rural funds in the various funding programs.

2018-19 Cap-and-Trade Expenditure Plan

Investment Category




(In Millions)

AB 617 Implementation

Air Resources Board

Community Air Protection


Local Air District Implementation


Technical Assistance to Community Groups


Low Carbon Transportation

Air Resources Board

Clean Vehicle Rebate Project


Clean Trucks, Buses & Off-Road Freight Equipment


Enhanced Fleet Modernization Program


Energy Commission

Low Carbon Fuel Production


Climate Smart Agriculture

Air Resources Board

Agricultural Diesel Engine Replacement and Upgrades


Energy Commission

Energy Efficiency


Department of Food and Agriculture

Renewable Energy


Energy Commission

Healthy Soils


Sustainable Forests


Fire Prevention


Forest Carbon Plan: Prescribed Fire & Fuel Reduction


Urban Forestry



Natural Resources Agency

Forest Carbon Plan: Northern, Coastal and Southern California Regional Forest Health Projects



Local Fire Response


Short-Lived Climate Pollutants

Department of Food and Agriculture

Methane Reduction



Waste Diversion


Air Resources Board



Integrated Climate Action: Mitigation and Resilience

Strategic Growth Council

Transformative Climate Communities


Natural Resources Agency

Urban Greening



Coastal Resilience


Department of Fish and Wildlife

Wetlands Restoration


Community Services & Development

Low-Income Weatherization


California Conservation Corps

Energy Corps


Climate and Clean Energy Research

Strategic Growth Council

California Climate Change Technology and Solutions Initiative & Technical Assistance