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SB 535 uses profits from the cap-and-trade policy, which went into effect in California in 2013, to fund projects that are beneficial for disadvantaged communities. The cap-and-trade came about as a way to lessen the environmental impact of companies on the community. The system is relatively simple and easy to put into action.
The California Cap-and-Trade program was created by CARB as a market mechanism to reach GHG emission reduction targets established in AB-32. There currently is a Cap-and-Trade program in California, though it is not directly required under SB-32, which simply establishes a clear emissions reduction goal.
Through the Western Climate Initiative (WCI), California is working to link its cap and trade system to other states. In October 2013, California officially linked its cap-and-trade program with Quebec Ministry of Sustainable Development, Environment, Wildlife, and Parks.
Gov. Gavin Newsom says $11 billion spent through California's cap-and-trade program over 10 years represents the 'backbone' of state efforts on climate change.
In 2018, California spent $1.4 billion raised from its cap and trade program to reduce greenhouse gas emissions, out of $3.4 billion spent cumulatively since 2012; notable projects include California High-Speed Rail and the Clean Vehicle Rebate for low-emission vehicles. [65]
They noted that California’s farmers previously experienced financial losses during Trump’s first administration, when the adoption of U.S. tariffs in 2018 prompted China to retaliate with ...