Yesterday, Governor Jerry Brown officially unveiled his budget after days of speculation and leaked reports to newspapers. One of the highlights of the budget is how Brown proposes to spend the “Cap and Trade”* funds. Last year, the state borrowed against these funds to fill a gap in the general operating budget. This year, with $100 million “borrowed” from last year returned, the Cap and Trade allocation was a cool $850 million for projects that will improve air quality through green energy initiatives.*
“This budget makes an important down payment on repairing our aging transportation network, upgrading public transportation and investing in walkable, sustainable communities,” said Stuart Cohen, Executive Director of TransForm and a member of Secretary Kelly’s California Transportation Infrastructure Priorities workgroup.
The Natural Resources Defense Council was similarly excited by the proposed budget. In a post entitled “Carbon Pollution Funds Poised to Deliver on Clean Energy in California” on the Switchboard blog site, Alex Jackson praises the budget for spending Cap and Trade funds in a variety of ways that will reduce pollution and the state’s carbon footprint.
While conversations in the capitol will continue on the best way to maximize the benefits associated with spending cap-and-trade proceeds (and ensure each expenditure comports with legal requirements), the Governor deserves praise for putting forth a budget plan that recognizes the importance of investing cap-and-trade proceeds as a key strategy to keep California on pace toward achieving its long-term climate and clean energy goals.
But not everyone was thrilled with the budget. Despite spending the Cap and Trade funds on promoting clean energy, the cleanest forms of transportation, walking and bicycling don’t have their own budget line in the Cap and Trade allocation. True the overall proposed state budget includes a $9 million allocation for the Active Transportation Program, but when it comes to Cap and Trade, bicycle and pedestrian programs will compete for a slice of the $100 million for “Implementing Regional Sustainable Communities Strategies” with housing, planning, land-use, transit oriented development and other worthy livability programs.
“The Transportation Agency has worked productively with statewide walking and biking organizations to create a new Active Transportation Program that is prepared to invest in these modes at a scale never seen before in California,” writes Eric Bruins with the Los Angeles County Bicycle Coalition. “It is disappointing that no cap-and-trade funds are allocated to the ATP, despite everyone’s work to set it up for that purpose. Hopefully the Legislature will again support walking and biking by directing significant cap-and-trade revenues to the most cost-effective, green transportation modes.” Read more…