Cal Cities hits the gas on Cap-and-Trade talks

Cities can submit a letter of support using Cal Cities’ sample letter

By Brian Hendershot, Cal Cities Advocate managing editor

Cal Cities officers earlier this week lobbied key lawmakers — including the offices of future Senate leader Monique Limón and Asm. Jacqui Irwin — on what has become one of Sacramento’s most-watched negotiations: the future of the Cap-and-Trade Program.

The visits are part of a larger effort by Cal Cities and a broad coalition to reauthorize the program and ensure Cap-and-Trade funding is available to cities. Both Sen. Limón and Asm. Irwin are leading efforts to reauthorize the program, which is set to expire in 2030.

Cap-and-Trade allows businesses to buy a limited number of credits each year from the California Air Resources Board to cover their carbon emissions. Proceeds from the auction are used for a variety of programs that reduce carbon pollution and support middle-class jobs. A push from Gov. Gavin Newsom to renew the program earlier this year has set off a flurry of procedural maneuvers and stakeholder meetings in the final weeks of the session.

Cal Cities and others have argued that lawmakers must invest in local efforts to carry out statewide climate goals, such as increasing zero-emission vehicles and organic waste recycling, mitigating sea level rise, and hardening homes.

Reauthorizing the Cap-and-Trade program is also critical to accelerating affordable housing. Investments from the program have contributed to over 1,200 new projects, boosting affordable housing and building more climate-resilient communities statewide.

With other state and federal investments drying up — or gone entirely — this funding is critical, Cal Cities and its allies argue. For example, without Cap-and-Trade funding, there would be few state dollars to support the production of affordable housing and ensure the state’s housing goals are met.

Members of Cal Cities’ North Bay Division this week also lobbied Senate President pro Tempore Mike McGuire and other legislators on the program.

A deal is expected to land soon. Lawmakers need to get something in print by Sept. 9, three days before the end of the session.