Cap and Trade Program

The Cap-and-Trade Program is a key program that the California Air Resources Board (ARB) is implementing to reduce GHG emissions and it is expected to provide a significant amount of funding in the coming years. If properly allocated and utilized, these funds can also provide co-benefits in reducing the criteria pollutants that are the target of the District’s efforts to improve public health by attaining ozone and particulate standards.

Strategy to Secure Cap & Trade Funds

The District is playing a key role in guiding these critical funding decisions to ensuring that the Valley receives its fair share of Cap and Trade revenues. The District’s Cap and Trade Action Plan is an aggressive, multi-faceted plan which includes:

• Aggressively pursuing funding opportunities for Cap and Trade funds in the Valley and assisting other Valley entities in their pursuit of funding.
• Forming regional partnerships and building a Valley-wide coalition to ensure that the Valley is unified in our approach and message.
• Educating state legislative and administrative branches of the Valley’s tremendous needs, particularly in relation to the Valley’s many disadvantaged communities.
• Pursuing innovative funding strategies to ensure that the Valley’s unique characteristics and challenges are addressed.
• Utilizing the District’s incentive program expertise and organization to administer Cap and Trade funded grant programs in the Valley.

Disadvantaged Communities

Disadvantaged communities in California are specifically targeted for investment of proceeds from the Cap and Trade Program. These investments are aimed at improving public health, quality of life and economic opportunity in California’s most burdened communities at the same times they are reducing pollution that causes climate change. CalEPA released the list of disadvantaged communities and 23 out of the top 30 disadvantaged communities are in the San Joaquin Valley.

Senate Bill 535 directs that 25 percent of Cap and Trade program funds must provide a benefit to disadvantaged communities and a minimum of 10 percent of the funds are for projects located within those communities.