Skip to content

Posts from the "cap and trade" Category

5 Comments

CA Adopts Guidelines for Cap-and-Trade Affordable Housing Program

Screen shot 2015-01-21 at 11.50.06 AM

Screen shot 2015-01-21 at 11.50.22 AM The Affordable Housing and Sustainable Communities program hopes to support projects that transform neglected, auto-dependent streets like the one on top into vibrant mixed-use transit corridors. Image: Strategic Growth Council

Yesterday the Strategic Growth Council adopted guidelines for the Affordable Housing and Sustainable Communities (AHSC) program and scheduled workshops for early February to provide technical assistance to potential applicants.

California’s Strategic Growth Council is a state committee that coordinates a variety of activities by multiple state agencies, including efforts to improve air and water quality, increase affordable housing, improve transportation, and other issues related to quality of life in California. The Council was given the task of overseeing the AHSC program, created last year during negotiations on how to spend cap-and-trade revenue to reduce greenhouse gas emissions.

The AHSC is tasked with reducing greenhouse gas emissions by encouraging the development of affordable housing near transit and by creating walkable, bikeable communities that encourage few car trips.

There is $130 million in AHSC’s first round, and staff estimate it will be able to provide partial support for between 15 and 25 projects. The second round of funding is slated to receive $200 million, pending how much revenue cap-and-trade raises this year as well as final budget decisions in June.

The AHSC is a new program, and the process of creating the guidelines has been on a fast pace. After a series of intensive public workshops held throughout the state, proposed guidelines were released in October. At yesterday’s hearing, speaker after speaker remarked that SGC staff succeeded in creating a remarkable, important program in an extremely short time.

And almost everyone agreed it still needs work. Read more…

No Comments

Transit and Intercity Rail Funding: Upcoming Workshops

Capitol Corridor train running through Oakland. Photo: Ale Sasso, Wikimedia

The Capitol Corridor train serves intercity travelers between San Jose and Sacramento; in this photo it’s passing through Oakland. Photo: Ale Sasso, Wikimedia

State agencies are seeking input on one more program that will receive funds from California’s cap-and-trade system. Guidelines for the Transit and Intercity Rail Capital Program [PDF] were released in December. Two public workshops will be held next week to gather feedback, one in Los Angeles and one in Sacramento.

The stated goals of the program are to fund capital and operational improvements to transit and rail to reduce greenhouse gas emission, increase ridership, integrate the various existing rail services, and improve safety.

The first round of funding will allocate $25 million. Discussions at earlier workshops touched on whether there is enough money to make it worth rail agencies’ time and effort to apply. However,  future funding cycles are likely to get more funding as the cap-and-trade program is expected to bring in more money in the next five years.

The guidelines currently cover eligibility criteria, the application and evaluation processes, and the selection process.

The workshops will be held:

  • Tuesday, January 20, 10 am, at the Los Angeles County Metropolitan Transportation Authority Board Room, One Gateway Plaza, third floor, Los Angeles. [Agenda PDF]
  • Wednesday, January 21, 10 am, at the California State Capitol, Room 447 (historic building), Sacramento [Agenda PDF]

Comments may also be submitted here.

The draft guidelines are scheduled to be presented to the California Transportation Commission for approval at its January 22 meeting.

Email tips, alerts, press releases, ideas, etc. to melanie@streetsblog.org.
For social media coverage focused on statewide issues, follow Melanie @currymel on Twitter or like our Facebook page here.

2 Comments

Report: CA Cap-and-Trade Program Is Up to Snuff

Screen shot 2015-01-14 at 12.37.16 PM

The Environmental Defense Fund’s new report says California’s cap-and-trade system is succeeding

Note: The original post has been edited slightly to clear up a misconception. Companies subject to the emissions cap cannot pay for the right to exceed the cap.

The Environmental Defense Fund released a report this morning that says the second year of California’s cap-and-trade program is a success on several fronts.

The report, “Carbon Market California Year Two” [PDF], follows up on its first-year report by analyzing results from the 2013-14 cap-and-trade program.

Cap-and-trade is the part of California’s climate change law that puts teeth into the state’s efforts to reduce greenhouse gas emissions. It works by defining an upper limit, or “cap,” on emissions for different industry sectors, and creating credits per ton of carbon pollution.

Companies are allowed a certain number of “free” emission credits, and a limited number are also made available for auction — thus the “trade” part, wherein companies buy and sell credits amongst themselves. The total number of available credits, free and auctioned, equals the industry-wide emissions cap.

The cap is set to shrink over time as the state moves towards its carbon emission reduction goals, thus requiring companies to further reduce  emissions. At the same time, the price of emission allowances will rise as competition for them becomes hotter, and the more a company can reduce its emissions the fewer credits it will need.

Revenues from the auctions are to be used for projects that can help the state further reduce emissions, for example by building affordable housing near transit, although raising money is not one of the goals of the program.

According to the report, California is succeeding in limiting, pricing, and reducing emissions by getting industries to pay for the pollution they produce.

Key conclusions from the report after the jump: Read more…

6 Comments

2015 CA State Budget: for Transportation, More of the Same

California Governor Jerry Brown explains the need for fiscal restraint as he presents the preliminary 2015 state budget

California Governor Jerry Brown explains the need for fiscal restraint as he presents the preliminary 2015 state budget

Governor Jerry Brown released his preliminary budget proposal [PDF] today in Sacramento, missing the opportunity to articulate the connection between spending on roads and meeting the climate change goals he proposed Monday in his inaugural speech.

The draft budget holds no huge surprises for sustainable transportation advocates. It mostly follows last year’s budget for transportation spending. Brown made no move to change the allocations of cap-and-trade funds, which include a 25 percent for high-speed rail, with the rest of the expected $1 billion going to other projects that help reduce greenhouse gas emissions. The budget mentions the $350 million for last year’s Active Transportation Program, but makes no mention of increasing that amount.

At the press conference, Brown highlighted funding for road maintenance and repair, but failed to connect spending on roads with his stated goal of reducing fuel consumption by 50 percent over the next fifteen years. That goal won’t be easy to reach, and will take more than high-speed rail and electric cars.

“Getting people biking and walking is a critical part of that effort,” said Jeanie Ward-Waller of the National Safe Routes to Schools National Partnership. “Yet the Active Transportation Program is only one percent of the budget—less if you include cap-and-trade money,” which the governor’s office expects to add another $1 billion to next year’s budget.

“Yes, we have unfunded highway maintenance needs,” she added, “but as long as we keep building highways, we always will. We need to focus on shifting people to other modes.”

Instead Brown emphasizes high-speed rail as his main solution for reducing fuel consumption. His budget lists HSR among “healthy transportation alternatives,” alongside transit and walkable and bikable communities, that will receive half of cap-and-trade revenue.

But high-speed rail won’t reduce greenhouse gas emissions any time soon, and the amount of money allocated to it dwarfs the Active Transportation Program, which has the potential to increase the number of people who choose bikes and walking.

Read more…

8 Comments

CA Legislature’s New Session: Hit-and-Run, Cap-and-Trade, No Tolls for Bikes

Screen Shot 2014-05-02 at 4.34.24 PMA new California legislative session started last week with the swearing-in of ten new Senators and 27 new Assemblymembers, the introduction of a hundred new bills between the two houses, and adjournment until January 5.

These first-out-of-the-gate bills can be discussed in hearings as soon as the legislature reconvenes, since by then they will have been “in print” for 30 days. Bills introduced in January will have to wait a bit longer.

Some of the new bills are placeholders that are likely to be further developed as the session moves forward, but some are identical to bills from last year’s session.

Hit-and-Run

A case in point is A.B. 8, from Assemblymember Mike Gatto (D-Los Angeles), which would create a statewide Yellow Alert system to inform law enforcement and the public about vehicles involved in hit-and-run crimes. It is exactly the same bill as last year’s A.B. 47.

A.B. 47 sailed through both houses, then was vetoed by Governor Brown.

Earlier in the session, the Governor had already signed a law similar to Gatto’s bill that allowed the existing Amber Alert system to expand from childhood abductions to include lost or missing seniors and disabled people. The governor said in his veto message that he didn’t want to overload the statewide alert system before the newly added pieces were tested.

Gatto considered this an invitation to try again, and so he has. His staff says they are confident the bill will pass easily again–and that by the time it does the governor will have seen that the system is not overloaded.

Other early bills in the 2015-16 session are listed after the jump. Read more…

2 Comments

Exposed: Oil Industry’s Astroturf Tactics Against CA Cap-and-Trade

The Western States Petroleum Association extols its campaigns against cap-and-trade purporting to represent “consumer concerns.” Source: WSPA

It’s no surprise that the oil industry is fighting California’s cap-and-trade program. But it is enlightening to see the strategy laid out in a leaked PowerPoint presentation [PDF].

Last week, Brad Wieners at Bloomberg Businessweek leaked a presentation put together by the Western States Petroleum Association (WSPA), an oil industry lobby firm that operates in California. In the presentation slides, WSPA details its strategy to oppose regulatory efforts in California, Oregon, and Washington to combat climate change, including California’s Global Warming Solutions Act (A.B. 32), low carbon fuel standards, and the cap-and-trade system.

Examples of oil industry astroturf campaigns in the states of Washington, Oregon, and California. Images via WSPA powerpoint [PDF]

Examples of oil industry astroturf campaigns in the states of Washington, Oregon, and California. Images via WSPA powerpoint [PDF]

The main strategy is what Wieners calls an “astroturf campaign”:

Groups with names such as Oregon Climate Change Campaign, Washington Consumers for Sound Fuel Policy, and AB 32 Implementation Group are made to look and sound like grassroots citizen-activists while promoting oil industry priorities and actually working against the implementation of AB 32.

One of those groups put together the “Stop the Hidden Gas Tax!” campaign, which tried to convince California consumers to protest against rising gas prices that will supposedly result from the fuel industry coming under cap-and-trade regulation in January. The campaign didn’t get much traction, perhaps because gas prices are falling, or perhaps because, as Tim O’Connor of the Environmental Defense Fund points out, California voters have support clean energy alternatives.

O’Connor told Business Week:

It’s eye-opening to see the lengths [the WSPA] has gone to push back rather than move forward. I don’t think anybody knew how cross-jurisdictional, cross-border, and extensive their investment is in creating a false consumer backlash against [climate legislation].

WSPA spokesperson Tupper Hull responded in the article:

We did not oppose AB 32 when it passed. We believe it’s good to have the reduction of greenhouse gases as a goal. We support that goal. [But] hundreds of pages of regulations have been added to what had been a page-and-a-half document, and we do object to many of the additions.”

However, WSPA took part in the formulation of those regulations.

A.B. 32, and its cap-and-trade regulations that charges industries money for the pollution they emit, is groundbreaking and frightening to big oil, as evidenced by WSPA’s presentation. It is just beginning to produce major funding streams for all kinds of sustainable programs, from affordable housing to transit to high speed rail, and the rest of the nation, and the world, are watching to see how well it succeeds. A.B. 32 could spawn climate change legislation elsewhere, equally noxious to the oil companies’ polluting habits, so no wonder they are attacking it every way they can.

No Comments

Garcetti Motion Encourages Affordable Housing At Metro Stations

California's Strategic Growth Council has awarded the city of Los Angeles a half-million dollar grant for a study that will make it easier to build infill housing in Transit Priority Areas, similar to this transit-oriented development above the Metro Red Line Wilshire/Vermont Station. Photo: Joe Linton/Streetsblog L.A.

A Metro motion passed today should help the agency play a significant role in joint development of affordable housing at Metro stations, similar to this housing at the Wilshire-Vermont subway station. Photo: Joe Linton/Streetsblog L.A.

Earlier today, the Metro board of directors passed a motion [PDF] encouraging Transit-Oriented Development (TOD) and affordable housing.

The motion may give some indication of where the board’s newest chair, Los Angeles Mayor Eric Garcetti, hopes to take the agency. Garcetti has been a vocal proponent of siting affordable housing along transit lines. Garcetti authored the motion and shepherded its passage in the face of concerns expressed by other Metro boardmembers.

The motion helps Metro to play a greater role in fostering affordable housing at its rail stations and along its transit corridors. There are six components to the motion; the agency will: (full text in this PDF)

  1. Inventory current and potential future joint development sites along Metro’s Gold, Expo, Crenshaw/LAX, Regional Connector, and Purple Lines.
  2. Partner with local cities and L.A. County to work together to invest in transit corridor sites, potentially leveraging municipal housing funding.
  3. Set a goal that a minimum 30 percent of Metro’s jointly-developed housing will be affordable housing.
  4. Allow property value discounts to incentivize affordability.
  5. Collaborate on the creation of a Countywide Transit Oriented Affordable Housing (TOAH) loan fund.
  6. Establish a TAP purchase program for residents of joint development housing.

The motion directs Metro CEO Art Leahy to report to the board in February 2015 with a preliminary assessment of the above. From its preamble, the motion readies Metro to support the region in taking advantage of new State of California programs that will grant cap-and-trade funds to promote Affordable Housing and Sustainable Communities (AHSC.)

The motion was approved at last week’s executive committee meeting, so it could have sailed through this morning without debate. Boardmember Diane DuBois removed the item from the meeting’s consent calendar. Though DuBois ultimately voted in favor of the motion, she offered a long list of concerns, including: Metro shouldn’t “dictate” affordable housing goals, Metro doesn’t have authority over land use, affordability targets will discourage development, existing TAP outlets are sufficient, and affordable joint development is “diverting transit dollars.”

Overall, Dubois’ comments encouraged Metro to tightly focus on its mission to provide transit, hence joint development would merely “generate value” that the agency can use to fund transit.

The motion was then defended by its co-authors, Garcetti, Supervisor Mark Ridley-Thomas, and Garcetti-appointees Jacquelyn Dupont-Walker and Mike Bonin. Garcetti cited a recent report showed that L.A. City has the least affordable rental housing market in the nation.

Councilmember Bonin stressed that Metro does have significant influence over development, and that it was a “moral imperative” to play a role in addressing the great need for affordable housing. Overall, Garcetti and these co-authors affirmed that Metro’s mission does extend beyond the strict boundaries of its stations, and that the agency plays a big role in the quality of life in transit-adjacent communities.  Read more…

8 Comments

More Housing, Less Sprawl: Tackling Los Angeles’ Affordable Housing Crisis through Smart Growth

It is no secret that Southern California is currently facing one of the worst housing crises it has faced in more than half a century.

Eric Garcetti is a long-time believer in density built around transit. Photo:##http://endinggridlock.org/blog/congratulations-to-las-next-mayor-eric-garcetti##Angelenos Against Gridlock##

Eric Garcetti is a long-time believer in density built around transit. Photo:Angelenos Against Gridlock

That’s the point Los Angeles Mayor Eric Garcetti drove home Wednesday at the Los Angeles Business Council’s annual Mayoral Housing, Transportation, and Jobs summit.

While it isn’t a revelation to most that it’s getting harder and harder to be poor or even middle class and afford to live in Los Angeles County – especially in westside cities like Santa Monica – it was refreshing to hear Garcetti address the root cause of this crisis: a lack of new housing being built.

But even more refreshing was to hear Garcetti, who currently chairs Metro’s Board of Directors, talk about making sure new housing – especially units affordable to low and middle-income residents – gets built next to the region’s expanding transit system.

At the summit, Garcetti announced his plan to increase L.A.’s housing stock by 100,000 new units by 2021. At the same time, he announced his intention to bring a motion before the Metro board to “analyze affordable housing preservation and construction around our transit system, from using MTA-owned land and targeting transit-pass programs.”

Does that mean we may see some of those sprawling surface parking lots redeveloped into places where middle- and low-income residents – many of whom rely on public transit for their daily commute – can live?

Studies have shown that lower-income residents will leave their cars at home 50 percent more often than wealthier residents if they live within a quarter mile of reliable public transit.

Placing affordable housing near transit is a major tool in combating these issues, which is one reason why State Senator Darryl Steinberg fought for a generous portion of the California’s cap-and-trade money to be used to subsidize transit-oriented development.

The reality is, Garcetti said, that without growth, especially near transit, the region’s problems will only get worse. While the housing crisis may be evocative of the post-war era, regional leaders seem to realize that sprawl – the answer to our mid-century housing crisis – is not the answer today. (In case you didn’t already realize it, sprawl is really bad for people, the environment, and the economy.) Read more…

25 Comments

The Hidden Gas Tax That Doesn’t Exist

GasTaxMobileBillboardYou may have seen the ads on Facebook, or on one of the roving billboards being pulled by a gasoline-powered truck. They warned darkly of a coming “hidden tax” on fuel that was so hidden nobody in the media was talking about it. You may have wondered what it meant, even as the ads urged you to sign a petition today.

Last week, the oil-industry-backed effort to get people riled up about the “coming hidden gas tax” delivered its petition [PDF] to the California Air Resources Board’s monthly meeting in Diamond Bar.

The California Drivers Alliance gathered a whopping 115,000 signatures, and “dozens” of people showed up to deliver them. It urges the Air Resources Board to delay its “plan to increase fuel prices next year” and charges that the agency has been “unresponsive” and “has not even put this far-reaching policy on its agenda for public discussion.”

Not a word of which is true.

There is no “hidden gas tax” that will suddenly come into being in January. The Air Resources Board has no “plan to increase fuel prices,” nor could it do so. The only change coming is that transportation fuels will become subject to California’s cap-and-trade system.

That means that distributors and transporters of fuels must either 1) comply with requirements to produce no more than a certain amount of greenhouse gas emissions (the “cap” on emissions), or 2) buy enough “pollution credits” from the state to “meet” the cap. This is the “trade” part of the system.

The EPA estimates that transportation contributes a quarter of the greenhouse gas emissions in the country.

To adopt the industry’s tactic of endless repetition: “There is no ‘hidden tax,’ or any other tax associated with [California climate change law A.B. 32] programs,” according to a written statement from Dave Clegern of the Air Resources Board. “There is simply a market mechanism, which industry preferred, to allow businesses to spread their emission reductions between now and 2020 . . . instead of having to make those greenhouse gas reductions all at once.”

The Air Resources Board knows that the industry prefers this method because it has said so. “The oil industry and dealers were at the table through this whole process, and have been aware this coverage was coming for at least five years,” wrote Clegern.

In official comments submitted to the Board in 2011, the industry’s trade group, the Western States Petroleum Association, wrote: “WSPA reiterates its support for the Cap and Trade program and a market-based approach to implementing AB 32.” [PDF]

Read more…

No Comments

More Workshops on CA Affordable Housing Program

"Concept drawing" of an idealized street at the Strategic Growth Council website shows a mix of modes and multi-familuy dwellings.

“Concept drawing” of an idealized street at the Strategic Growth Council website shows a mix of modes and multi-family dwellings.

California’s Strategic Growth Council is holding a second round of workshops on its guidelines for spending cap-and-trade funds on affordable housing and sustainable communities. The draft guidelines [PDF] incorporate input gathered over the summer as well as at several packed workshops held throughout the state in August of this year.

The Affordable Housing and Sustainable Communities program was created this year with $130 million in funding from California’s cap-and-trade system. Its goal is to reduce greenhouse gas emissions by funding projects that connect land use and transportation, support infill and compact development, and contribute to other public policy goals including reducing air pollution, increasing mobility options, and increasing transit ridership.

The program is trying to do many things with not very much money. However, it is slated to receive an ongoing twenty percent of future annual cap-and-trade funds, which are expected to grow considerably in the next few years.

The draft guidelines set program requirements and eligibility, application procedures, and performance requirements. “We want to hear your ideas about the program and how it can best benefit your communities,” said Mike McCoy, the Strategic Growth Council’s executive director.

One of the sticking points at the last workshops was how to define and quantify benefits to disadvantaged communities, which by law must benefit from half of the program’s funding–but that was only one of many points of discussion. This round of workshops will not include the small group discussions of the past round, but staff members say there will be plenty of time for discussion and public comment.

The first in this round of workshops will be held in Merced today, October 23, from 1 to 4. Preregistration for all the workshops is necessary, and they will probably fill up, if the last series is an indication. However, as of today there are still tickets available for all of them. Read more…