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Governor Brown has released his proposed budget for the 2016-2017 fiscal year, with several possible allocations under the Cap and Trade Expenditure Plan that will support the waste and recycling industry. It is important to note that this is only a proposed budget and, as you will recall last year, both the Legislature and the Senate will determine their own proposed budgets that may or may not coincide with the Governor’s. Moreover, the Cap and Trade Funds failed to be released last year as a result of disagreements between the Governor, Senate and the Legislature. Despite this, CRRC supports the allocations outlined by the Governor and will be lobbying on their behalf as the Senate and Legislature determine their own Cap and Trade funding proposals. The following proposed allocations:

• $25 million for Biofuel Facility Investment (California Energy Commission) – for the Energy Commission’s Alternative and Renewable Fuel and Vehicle Technology Program to provide incentives for in‑state biofuel production through the expansion of existing facilities or the construction of new facilities.

• $500 million for Low Carbon Transportation and Fuels (Air Resources Board) – to provide incentives for low carbon freight and passenger transportation, including rebates for zero‑emission cars, vouchers for hybrid trucks and zero‑emission trucks and buses.

• $100 million for Waste Diversion (CalRecycle) – to provide financial incentives for capital investments that expand waste management infrastructure, with a priority in disadvantaged communities, including new or expanded clean composting, anaerobic digestion, fiber, plastic, and glass facilities to divert more materials from landfills.

• $55 million for Healthy Soils and Dairy Digesters (CDFA).

• $150 million for Healthy Forests (CAL FIRE) – to support forest health programs that reduce GHG emissions through fuel reduction, reforestation projects, pest and diseased tree removal, and long‑term protection of forested lands vulnerable to conversion. Funds will also support biomass energy generation projects.

• In addition to the above funding, the Governor is proposing $15 million from the General Fund to the California Energy Commission on a one-time basis to initiate research on innovative and emerging technologies for low carbon transportation fuels.

In general, the Governor’s proposed allocations from the Cap and Trade Fund indicate his support of the waste and recycling industry and our significant role in tackling climate change. Our greatest obstacle will be demonstrating through scientific data that the proposed funding mechanisms will lead to meaningful reductions in greenhouse gas emissions. Stay tuned as CRRC and other stakeholders take on the heavy task of getting Cap and Trade funding approval for FY 2016 -2017.

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