'Cap-and-Trade funding powers our communities,’ Cal Cities and others tell state leaders

Cities should urge their lawmakers to support climate-safe infrastructure investments during debates over the program’s future

By Brian Hendershot, Cal Cities Advocate managing editor, and Melissa Sparks-Kranz, legislative advocate

Cal Cities and a coalition of business, labor, local government, and transit agency leaders rallied at the Capitol on Tuesday to urge state leaders to prioritize climate-safe infrastructure improvements during Cap-and-Trade reauthorization negotiations. The program is set to expire in 2030.

“Cap-and-Trade funding powers our communities,” said Cal Cities Executive Director and CEO Carolyn Coleman. “It helps our cities meet the state’s climate goals, strengthens our economy, and accelerates the production of affordable housing.”

The coalition was joined by dozens of construction workers and local elected officials, who emphasized the importance of directing Cap-and-Trade funding toward proven investments in both physical and natural infrastructure. The coalition called for dedicated funding for infrastructure improvements to combat climate impacts, such as sea level rise, flood events, and wildfires, as well as help meet state mandates, including affordable housing, organic waste diversion, clean transportation, and zero-emission public vehicles.

Investments from the Greenhouse Gas Reduction Fund have also contributed to over 1,200 new projects boosting affordable housing and building more climate-resilient communities statewide — including in the nearby River District in West Sacramento, rural cities like Dinuba in the Central Valley, and larger cities like Long Beach.

“Our coalition is rallying behind diverse investments in climate infrastructure that will make us safer, reduce pollution and emissions, and support tens of thousands of family-supporting middle-class jobs,” said California Alliance for Jobs Executive Director Michael Quigley. 

Members of the coalition also spent time in the State Capitol meeting with legislative leaders, members, and their staff to discuss the coalition’s priorities.

How can my city help?

The coalition’s priorities for future investments from the Cap-and-Trade Program include the following:

• Local Clean Transportation Infrastructure
• Climate Adaptation Programs, Sea Level Rise, and Organic Waste Infrastructure
• Land Use/Infill Development for Affordable Housing and Sustainable Communities
• State and Regional Clean Transit Infrastructure
• State Wildfire Resilience Infrastructure

Cities can help by urging their lawmakers to support climate-safe infrastructure projects and program funding from the Greenhouse Gas Reduction Fund as part of the reauthorization programs. Cities are strongly encouraged to submit a letter of support to their legislators and the lawmakers leading these discussions: Sen. Monique Limón and Asm. Jacqui Irwin.

The fund — supported by proceeds from the Cap-and-Trade Program — has generated roughly $30 billion over the last ten years. These funds go to cities and others as grants for transit, rail, transportation, air quality, affordable housing, safe drinking water, and organic waste programs.

For questions, please contact your regional public affairs manager or Cal Cities Environmental Quality Legislative Advocate Melissa Sparks-Kranz. For more information on the coalition, visit ClimateSafeInfrastructureCA.com and follow on Facebook and X (formerly Twitter).