Environment and Natural Resources

Energy and Climate Change

The Global Warming Solutions Act of 2006 (Chapter 488 [AB 32, Núñez/Pavley]), commonly referred to as AB 32, established the goal of reducing greenhouse gas (GHG) emissions statewide to 1990 levels by 2020. Subsequently, SB 32 (Chapter 249, Statutes of 2016 [Pavley]) reduced the GHG emission target by an additional 40 percent by 2030.The Air Resources Board (ARB) has developed a wide variety of regulations and programs intended to reduce GHG emissions, including a cap-and-trade program.

The cap-and-trade program places a “cap” on aggregate GHG emissions from large GHG emitters. The cap declines over time, ultimately arriving at the target emission level in 2030. To implement the cap-and-trade program, ARB allocates a number of carbon allowances equal to the cap, and each allowance is essentially a permit to emit one ton of carbon dioxide (or the equivalent amount for other GHGs). The ARB provides some allowances for free, making others available for purchase at quarterly auctions. Entities can also “trade” (buy and sell on the open market) the allowances in order to obtain enough to cover their total emissions for a given period of time.

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ENERGY


Electricity Comes from Various Sources

Electricity Comes from Various Sources

Major State Spending on Energy Efficiency, Alternative Energy, and Mobile Source Emissions Reductionsa

(In Millions)

Category/Program

Description

Agency

Estimated 2017-18 Spending

Energy Efficiency

IOU Energy Efficiency Programs

Programs to increase energy efficiency and transform technology markets within California using ratepayer funds.

CPUC

$1,000

Clean Energy Jobs Act—Proposition 39

Grants for schools and community colleges for energy efficiency and clean energy projects.

CDE/CCC

423

Energy Savings Assistance Program

Energy efficiency program for low-income IOU customers, including weatherization, minor home repairs, and energy education.

CPUC

373

Alternative Energy

IOU Self Generation Incentive Program

Rebates for qualifying distributed energy systems installed on the customers’ side of the utility meter, including fuel cells and energy storage systems.

CPUC

$189

Electric Program Investment Chargeb

Funding for applied research and development, technology demonstration and deployment, and market facilitation for clean energy technologies.

CEC

125

Dairy Digester Research and Development

Grants to implement dairy digesters that reduce methane emissions from dairy manure in California.

CDFA

99

New Solar Homes Partnership

Incentives for installation of eligible solar energy systems on new residential construction.

CEC

96

Incentives for food processors

Incentives for emission reductions from food processing facilities.

CEC

60

Public Interest Natural Gas Research, Development and Demonstration Program

Research, development and demonstration program to advance science or technology for clean energy innovations related to natural gas use.

CEC

28

Mobile Source Emission Reductions

Heavy Duty Vehicles and Off-Road Equipment

Programs that promote low-emission heavy-duty vehicles and equipment, including freight demonstration projects, vouchers for trucks and buses, and truck and bus pilots.

ARB

$398

Carl Moyer Program and other local air district programs

Grants administered by local air districts for cleaner-than-required engines, equipment, and other sources of air pollution.

ARB

319

Light-duty vehicles

Includes rebates for zero-emission vehicles, additional incentives for certain low- and moderate-income households purchasing cleaner vehicles, and other programs to reduce transportation emissions in disadvantaged communities.

ARB

265

Agricultural equipment

Incentives to promote low-emission agricultural equipment

ARB

135

Alternative and Renewable Fuel and Vehicle Technology Program

Incentives to develop and deploy alternative vehicle technologies and renewable fuels.

CEC

97

IOU electric vehicle infrastructure pilots

Pilot programs to support electric vehicle charging in various locations, such as apartment buildings and workplaces.

CPUC

86

aDoes not include most Volkswagen settlement funding or public transit-related programs.

bDoes not include funds allocated to utilities.

IOU = Investor-Owned Utility; CPUC = California Public Utilities Commission; CDE = California Department of Education; CCC = California Community Colleges; CEC = California Energy Commission; CDFA = California Department of Food and Agriculture ; and ARB = Air Resources Board.


GREENHOUSE GAS EMISSIONS


Greenhouse Gas Emissions Come From Various Sources

Greenhouse Gas Emissions Come From Various Sources

For more information, please see Air Resources Board Emissions Inventory

 

State Law Requires More Greenhouse Gas Reductions by 2030

Recent Legislation Requires More Greenhouse Gas Reductions by 2030

 


CAP-AND-TRADE


Cap-and-Trade Regulation Ensures Emissions Do Not Exceed Limit

Cap-and-Trade Regulation Ensures Emissions Do Not Exceed Limit

For more information, please see The 2017-18 Budget: Cap-and-Trade

 

Allowances Offered and Purchased at Auctions

Allowances Offered and Purchased at Auctions

For more information, please see California Air Resources Board Auction Information.

 

State Revenue From Cap-and-Trade Auctions

State Revenue From Cap-and-Trade Auctions

For more information, please see California Air Resources Board Auction Public Proceeds Report.

 

Cap‑and‑Trade Expenditure Plan

(In Millions)

Program

Department/Agency

2017‑18

Proposed
2018‑19

Continuous Appropriationsa

$1,572

$1,369

High‑speed rail

High‑Speed Rail Authority

$655

$571

Affordable housing and sustainable communities

Strategic Growth Council

524

456

Transit and intercity rail capital

Transportation Agency

262

228

Transit operations

Department of Transportation

131

114

Other Existing Spending Commitments

$153

$152

Manufacturing sales tax exemption backfill

N/A

$43

$89

Various administrative costs

Various agencies

30

35

SRA fee backfill

CalFire/Conservation Corps

80

28

Discretionary Spending

$1,456

$1,250

Mobile Source Emissions

Local air district programs to reduce air pollution

Air Resources Board

$250

$250

Clean Vehicle Rebate Project

Air Resources Board

140

175

Freight and heavy‑duty vehicle incentives

Air Resources Board

320

160

Low‑income, light‑duty vehicles and school buses

Air Resources Board

100

100

Low‑carbon fuel production

Energy Commission

25

Forestry

Forest health and fire prevention

CalFire

200

160

Local fire prevention grants

Office of Emergency Services

25

25

Urban forestry

CalFire

20

Agriculture

Agricultural equipment

Air Resources Board

85

102

Methane reductions from dairies

Food and Agriculture

99

99

Incentives for food processors

Energy Commission

60

34

Healthy Soils

Food and Agriculture

5

Agricultural renewable energy

Energy Commission

6

4

Other programs

Climate and energy research

Office of Planning and Research

11

35

Transformative Climate Communities

Office of Planning and Research

10

25

Waste diversion

CalRecycle

40

20

Integrated Climate Investment Program

Go‑Biz

20

Energy Corps

Conservation Corps

6

Technical assistance to community groups

Air Resources Board

5

5

Urban greening

Natural Resources Agency

26

Natural lands climate adaptation

Wildlife Conservation Board

20

Low income weatherization and solar

Community Services and Development

18

Wetland restoration

Department of Fish and Wildlife

15

Coastal climate adaptation

Various agencies

6

Totals

$3,181

$2,771

aContinuous appropriations based on Governor’s revenue estimates of $2.7 billion in 2017‑18 and $2.4 billion in 2018‑19.

SRA = State Responsibility Area; CalFire = California Department of Forestry and Fire Protection; CalRecycle = California Department of Resources Recycling and Recovery; and Go‑Biz = Governor’s Office of Business and Economic Development.

For more information, please see The 2018-19 Budget: Resources and Environmental Protection.

 


ZERO-EMISSION VEHICLES

Funding for Major State Zero‑Emission Vehicle (ZEV) Infrastructure Programs

Program

Agency

Funding Amount

Description

Volkswagen (VW) ZEV investment commitment

California Air Resources Board

$800 million over ten years

A 2016 settlement requires VW to invest $800 million in ZEV projects—mostly for ZEV fueling infrastructure—in California over ten years. The first round of spending will invest $120 million to construct 350 neighborhood charging stations and 50 fast charging stations

Investor‑owned utilities (IOU) electric vehicle infrastructure

California Public Utilities Commission (CPUC)

$200 million since 2016

Since 2016, CPUC has approved over $200 million for ZEV infrastructure pilot projects. CPUC is currently evaluating IOU proposals to spend an additional $1 billion on ZEV infrastructure.

NRG settlement

CPUC

$100 million one time

A 2012 settlement requires the energy company NRG to install at least 200 public fast‑charging stations and infrastructure for up to 10,000 privately owned charging stations at residences and workplaces, estimated to cost about $100 million.

Alternative and Renewable Fuel and Vehicle Technology Program

Energy Commission

$40 million annually

Spends roughly $40 million annually for public ZEV infrastructure and has funded the construction of about 7,000 charging and fueling stations to date.

Highway charging

Department of Transportation

$20 million one time

The 2017‑18 budget provided $20 million to install 32 electric vehicle chargers along highway corridors.

Vehicle charging at state buildings

Department of General Services

$7 million in 2017‑18

The 2017‑18 budget provided $7 million to install 230 chargers at state buildings. The proposed 2018‑19 budget includes $16 million for 1,200 chargers. The administration has a long‑term plan to spend $87 million over four years to install over 6,200 charging stations.

For more information, please see The 2018-19 Budget: Resources and Environmental Protection.

Last Updated: March 2018