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HomeMy WebLinkAbout01-20-2015 CC MarxCOUNCIL M ETING: 01 V) � 7 ITEM NO.: CCY_Y L; t LL UE° l� OF CALIFORNIA CITIES LlAr a f 0`1 1Vt1L_Wf !Tare The FY 2014 -15 Budget included the first real appropriations from Cap- and -Trade auction revenues of $850 million. The majority of the funds will be used for projects and programs cities will benefit from. The budget took a two -step approach for the use of Cap- and -Trade investments. In year one, programs will receive the specified dollar amount. In subsequent years, transit, high -speed rail, sustainable communities' implementation, and affordable housing will receive continuous appropriations totaling 60 percent of the revenues received. The remaining 40 percent of future revenues will be appropriated on an annual basis by the legislature and Governor. This approach provides stable and predictable funding for planning infrastructure investments, while allowing some flexibility for the Legislature and Governor to respond to the priorities in future budget years. FY 2015 -16 Budget Proposal: Last week the Governor released his proposal for the FY 2015 -16 Budget. The budget proposes to allocate $1 billion from Capand -Trade revenues, continuing with the structure established in the FY 2014 -15 Budget: • $200 million for the Affordable Housing and Sustainable Communities Grant program; • $200 million for low- carbon transportation programs; • $50 million for the Low Carbon Transit Operations Program; • $100 million for the Transit and Intercity Rail Capital Program; �- • $250 million for High -Speed Rail; • $75 million for energy efficiency upgrades /weatherization and renewable energy projects in low- ibcome dwellings within disadvantaged communities; • $20 million for the Energy Commission for energy efficiency upgrades and weatherization in public buildings; • $15 million for the Department of Food and Agricultural for agricultural energy and operational efficiency; • $25 million for the Department of Fish and Wildlife for wetlands and watershed restoration; • $42 million for fire prevention and urban forestry projects; and, • $25 million for the Department of Resources, Recycling, and Recovery for waste diversion. Fuels come under the cap: Total Cap- and -Trade Revenues are expected to increase significantly beginning this year as transportation fuel and residential and natural gas sectors come under the cap on January 1, 2015. It is expected that revenues could total as much as $3 to $5 billion annually. However, the Governor continues to include only received revenues in his budget, presumably because he does not want to influence the outcome of future auctions. Updated 0111212015 Affordable Housing and Sustainable Communities Guideline Development: The FY 2014 -15 Budget included $130 million from Cap- and -Trade Revenues for the Affordable Housing and Sustainable Communities (AHSC) Program. This new program is administered by the Strategic Growth Council who is responsible for developing guidelines consistent with eligibility and policy objectives in statute. The purpose of the program is to invest in projects that reduce greenhouse gas (GHG) emissions by implementing land use, housing, transportation and agricultural land preservation practices to support infill and compact development and by supporting other related and coordinated public policy objectives. The main AHSC Program will provide grants and /or loans to projects that will achieve GHG reductions through increasing accessibility of affordable housing, employment centers and key destinations via low- carbon transportation options (walking, biking, transit), resulting in fewer vehicle - miles - traveled (VMT). The proposed guidelines can be found on the SGC Website (www.sgc.ca.gov). The guidelines for first round of funding from the Affordable Housing and Sustainable Communities Program are to be adopted on January 20, 2015, and the Strategic Growth Council meeting. The application period will open shortly after the guideline adoption and Concept Applications will be due in mid - February. For more information, please visit the League's Cap and Trade webpage at www. cacities. org /capandtrade. SLO CITY CLERK Updated 0111212015