User:Cdeocampo/sandbox

Unlike the traditional model of cap and trade policies that effectively reduces GHG emissions by commodifying pollution and limiting supply, California's recent success is the result of an emissions trading scheme that reinvests funds raised from its cap and trade program back into GHG reduction initiatives. Building on AB-32, current legislation, SB-32 defines target emissions reductions to be achieved by 2030. SB-32 establishes a clearly defined emissions reduction goal without providing a plan to achieve target reductions. Carrying over from the original law, the California Air Resources Board (CARB) is tasked with overseeing GHG reduction targets and ensuring goals are met by the state. CARB implemented a cap and trade program as a market mechanism to reduce GHG emissions; however, the program seeks to reach target reductions by emphasizing the "trade" rather than the "cap" aspect of cap and trade. California's cap and trade program enacts a "cap" on the emissions produced by private companies by issuing individual entities a fixed number of carbon credits. In addition, the state reserves a set number of credits to generate revenue through the sale of these credits in allowance auction or reserve sales.

California Climate Investments (CCI) designates the investment program using cap and trade revenue to fund GHG emissions reduction efforts. Proceeds are received by the Greenhouse Gas Reduction Fund (GGRF) and appropriated to specific programs via governor and legislature authorization. Currently, the majority of GGRF appropriations are awarded to public transportation and affordable housing and sustainable communities. Remaining funds are allocated to a variety of programs such as the Clean Vehicle Rebate Project which incentivizes residents to purchase zero-emissions vehicles. Another highlighted project is forest health management run by the California Conservation Corps.