Budget Package Delays Some Decisions on Allocating “Cap and Trade” Revenues in 2015-16
California’s “cap and trade” program, which raises revenues from auctions organized by the Air Resources Board, is expected to provide roughly $2 billion in 2015-16 for activities intended to address climate change. Under current state law, 60 percent of these revenues – $1.2 billion in 2015-16 – go to high-speed rail, the Affordable Housing and Sustainable Communities Program, the Low-Carbon Transit Operations Program, and the Transit and Intercity Rail Capital Program. The remaining 40 percent of these revenues – about $800 million in 2015-16 – are allocated based on annual priorities established by the Governor and the Legislature. However, state policymakers did not allocate this portion of cap-andtrade revenues as part of the 2015-16 budget package, and no specific timeline has been set for future deliberations.