Carolyn Whetzel | Bloomberg BNA

Revenue from California’s greenhouse gas emissions trading program would be used as a permanent source of funding for affordable housing, water efficiency projects and a variety of transportatiDollar Sign Christies Images Via Bloombergon projects, including high-speed rail, under a new plan outlined by State Senate President Pro Tempore Darrell Steinberg (D).

Unveiled April 14 at a news conference in Sacramento, the plan replaces a proposal Steinberg announced in February to impose a carbon tax on transportation fuels rather than bring them under the scope of the emissions trading program, as is scheduled in 2015.

The new proposal for investing cap-and-trade revenue would allocate $1.75 billion for affordable housing and sustainable communities; $1.31 billion for transit; $878 million for high-speed rail; $439 for street projects; $200 million for natural resources, water and waste projects; $200 million to deploy electric vehicles; and $10 million to fund a green bank.
Also, the plan would allocate $200 million to rebate “climate dividends’’ to consumers.

All the money would be required to be spent in accordance with the Global Warming Solutions Action of 2006 (A.B. 32) and other statutes mandating that revenue proceeds be used to reduce greenhouse gas emissions, according to Steinberg. {….}