{"id":19153,"date":"2025-03-05T07:29:58","date_gmt":"2025-03-05T15:29:58","guid":{"rendered":"https:\/\/calcanstaging.kinsta.cloud\/?p=19153"},"modified":"2025-04-01T14:27:32","modified_gmt":"2025-04-01T21:27:32","slug":"cap-and-trade-reauthorization-california-agriculture","status":"publish","type":"post","link":"https:\/\/calclimateag.org\/es\/cap-and-trade-reauthorization-california-agriculture\/","title":{"rendered":"La legislatura inicia el debate sobre el futuro del programa estatal Cap-and-Trade y las inversiones clim\u00e1ticas"},"content":{"rendered":"

The California legislature\u2019s <\/span>Joint Committee on Climate Change Policies<\/span><\/a> kicked off a public discussion last Wednesday about reauthorizing the state\u2019s <\/span>Cap-and-Trade Program<\/span><\/a>, which is set to expire in 2030. This discussion and the likely legislation that results from it will impact how the state regulates and puts a price on greenhouse gas emissions and invests the resulting revenue from the state\u2019s Greenhouse Gas Reduction Fund (GGRF).\u00a0<\/span><\/p>\n

As a result of efforts by CalCAN and other agricultural advocacy groups over the past 15 years, agricultural climate programs have received approximately $1.5 billion to date from the Cap-and-Trade Program. While we are grateful for this funding, the agricultural sector has been underfunded relative to its share of statewide GHG emissions and its ability to sequester carbon. Though the sector is currently responsible for 8% of emissions <\/span>y<\/span><\/i> has the capacity to sequester carbon, the sector has only received 2% of GGRF funds on a continuous basis (for the Sustainable Agricultural Lands Conservation Program, or SALCP) and 5% of all GGRF funds (both continuous and discretionary) to date.\u00a0<\/span><\/p>\n

Moreover, programs like the Alternative Manure Management Program (AMMP), Healthy Soils Program (HSP), and State Water Efficiency and Enhancement Program (SWEEP), have suffered from inconsistent, boom-and-bust funding that have made it difficult to scale up the local technical assistance capacity to support farmers in accessing the funds and adopting climate-resilient practices. This inconsistent funding has also placed significant strain on state agencies administering wildly fluctuating levels of one-time funds.\u00a0<\/span><\/p>\n

In this next reauthorization, CalCAN is advocating for 15% of GGRF revenue to be continuously appropriated to more consistently and robustly support a suite of programs that scale up cost-effective agricultural climate solutions, ensure long-term food security and affordability, and improve farmers\u2019 and ranchers\u2019 resilience to increasingly severe wildfires, floods, droughts, and heat waves.\u00a0<\/span><\/p>\n

How does the Cap-and-Trade Program work?<\/strong><\/h2>\n

The Cap-and-Trade Program was first authorized by the state legislature in 2006, launched by the California Air Resources Board (CARB) in 2012, and reauthorized by the state legislature in 2017 through 2030. Leaders in both chambers of the state legislature have indicated they want to reauthorize the program, which requires a two-thirds majority vote, this year in order to avoid uncertainty in the Program and associated market.<\/span><\/p>\n

The market-based Cap-and-Trade Program establishes a declining limit (\u201ccap\u201d) on emissions on the largest greenhouse gas emitting facilities in the state, including oil refineries, electricity generators, and manufacturing facilities. Collectively, the approximately 400 facilities covered by the cap produce 75% of statewide emissions.<\/span><\/p>\n

CARB issues a set number of allowances (each allowance permits a facility to emit one metric ton of carbon dioxide equivalent) each year, roughly equivalent to the emissions cap, which declines 4% per year. CARB gives away approximately half of the allowances under the emissions cap each year for free to electric and gas utilities and industries with the intention of protecting consumers from significant cost increases and with the intention of preventing California-based companies from moving their operations outside of California (often referred to as \u201cleakage\u201d). The other half of the allowances are sold at quarterly auctions and the revenues are deposited into the state\u2019s Greenhouse Gas Reduction Fund.<\/span><\/p>\n

\"\"<\/p>\n

Source: <\/span>CARB Presentation to Joint Climate Committee<\/span><\/a>, February 26, 2025<\/span><\/p>\n

The approximately 400 facilities regulated under the Program can comply with the Cap-and-Trade Program\u2019s requirements in three ways:<\/span><\/p>\n