Renew California’s Cap and Trade Program

California's Cap-and-Trade program provides significant funding for public transportation. Currently,  roughly 5% of the program's ongoing revenues go to funding transit service through the Low Carbon Transit Operations Program (LCTOP) and 10% for transit capital projects through the Transit and Intercity Rail Capital Program (TIRCP). 25% of Cap and Trade funds also go to High Speed Rail, while additional funds support wildfire prevention, clean water and affordable housing with high-quality transit access. These funds are vital for projects throughout the State and have funded everything from bus electrification to student transit discount programs to major rail and bus projects.

The program, which started in 2012, expires in 2030 and needs to be reauthorized in order to continue.  The reauthorization of the Cap-and-Trade Program is a critical opportunity for improvement. 

In March, a coalition of advocates for transit, housing, and environmental justice sent a letter urging the legislature to use these priorities when reauthorizing the program.

1. Protect, and if possible expand, current percentages of Cap and Trade continuous appropriation for the time-proven Affordable Housing Sustainable Communities Program (AHSC), the Transit and Intercity Rail Capital Program (TIRCP), and the Low Carbon Transit Operations Program (LCTOP). 

2. Add additional flexibility to existing Greenhouse Gas Reduction Fund transit programs to help address our state’s current transportation needs. 

3. Support the recommendations of the Environmental Justice community to reform the Cap-and-Trade program design and expenditures and maintain, or possibly expand, SB 535 and AB 1550 investment requirements in impacted communities.