Dozens of local governments, labor unions and advocacy groups focused on transit and public housing issues sent a letter to Gov. Gavin Newsom and lawmakers Tuesday demanding that they fully fund a bevy of climate programs at risk after regulators weakened the state’s emissions trading program.
What happened: The coalition of more than 80 organizations called for state leaders to tap into California’s general fund to ensure that five programs covering affordable housing construction, transit infrastructure, safe drinking water and more will be funded if cap-and-invest market revenues fall short of expectations.
Newsom and lawmakers reached a deal last year, SB 840, that committed nearly $2 billion in funds produced through sales of pollution allowance permits to those programs. However, the independent Legislative Analyst’s Office estimates that cap-and-invest changes that the California Air Resources Board finalized in April — in an effort to reduce costs for oil refineries — could result in a $2 billion annual reduction in funding for climate programs.
“Failing to follow through on the state’s commitments to fund these programs breaks faith with Californians struggling through the impacts of climate change, poor air quality, and rising costs, weakening our state’s climate progress and undermining efforts to make our state more affordable,” said California Transit Association Executive Director Michael Pimentel, who is leading the coalition behind the letter.
