HomeMy WebLinkAboutCarbonFree-DividendProgram_20160405Office of the City Council
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781 7114
locity oig
April 5, 2016
Governor Jerry Brown
c/o State Capitol, Suite 1173
Sacramento, CA 95814
Via FAX: (916) 558-3160
RE: The National Revenue -Neutral Carbon Fee and Dividend Program
Notice of SUPPORT
Dear Governor Brown:
On March 15, 2016 the City Council of the City of San Luis Obispo voted to unanimously
request the United States Congress immediately enact legislation and the United States
President sign into law a national revenue -neutral carbon fee and dividend program in order
to protect the economy and the climate for future generations.
For the reasons detailed in the attached resolution, the City of San Luis Obispo calls on you
to also lend your support to this program.
Sincerely,
an Howell Marx
Mayor
cc: see Attachment 2
Attachments:
1. Resolution No. 10701 (2016 Series), City of San Luis Obispo
2. Distribution List
RESOLUTION NO. 10701 (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REGARDING THE NATIONAL REVENUE -
NEUTRAL CARBON FEE AND DIVIDEND PROGRAM
WHEREAS, having determined that the Carbon Fee and Dividend legislative principles
proposed by the non-partisan Citizens Climate Lobby, attached hereto as Exhibit A, would
provide an efficient approach to shifting the incentives that keep the United States reliant on
fossil fuel energy and would, thereby, help support the rapid deployment of cleaner energy
alternatives; and
WHEREAS, having determined that this approach would be fair to everyone and would
protect middle and low income households by providing them with a dividend (also known as a
rebate) that, on average, would be higher than the increased costs for energy for two-thirds of all
households (specifically the lowest income two-thirds) during the transition to cleaner energy;
and
WHEREAS, per the non-partisan study by Regional Economic Models, Inc. (REMI),
this approach would ensure a substantial increase in private investment in cleaner energy options
because they will become significantly less expensive relative to fossil fuels within a known time
frame; and
WHEREAS, this approach would encourage consumers and businesses to keep their
carbon footprint smaller while still ensuring that all households would be able to afford the
energy they need during the transition to cleaner energy; and
WHEREAS, the City wishes to respond to these challenges with a business minded
focus, and
WHEREAS, having determined that early adoption of the National Revenue Neutral
Carbon Fee and Dividend Legislation in the United States would grow our economy, add nearly
two million jobs, help make us a world leader in cleaner -energy technology, and help establish
the United States as a leader in future global climate negotiations; and
WHEREAS, the national revenue -neutral carbon fee and dividend has already garnered
widespread support from Republicans as well as Democrats as evidenced by recent op-eds and
public statements in 2015 by prominent political leaders.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that the City Council requests that the United States Congress immediately enact
legislation and the United States President sign into law a national revenue -neutral carbon fee
and dividend program, as provided for in Exhibit A, in order to protect the economy and the
climate for future generations; and
ATTACHMENT
Resolution No. 10701 (2016 Series) Page 2
BE IT FURTHER RESOLVED that the City of San Luis Obispo directs the Mayor to
send a letter no later than 30 days after passage of this Resolution by the San Luis Obispo City
Council to all Mayors and City Councils, County Boards of Supervisors, School Boards, and
State and Federal legislators in San Luis Obispo, Monterey and Santa Barbara Counties, the
Governor of California, and the San Luis Obispo Council of Governments urging support for a
National Revenue Neutral Fee and Dividend Act and urging them to adopt a resolution in Favor
of National Revenue -Neutral National Carbon Fee and Dividend Legislation.
Upon motion of Council Member Ashbaugh, seconded by Council Member Christianson, and on
the following roll call vote:
AYES: Council Members Ashbaugh, Christianson and Rivoire,
Vice Mayor Carpenter and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 15th day of March, 2016.
Mayor Jan arx
ATTEST:
Lee Price
Interim City Clerk
APPROVED AS
Y'Christine Dietrick
City Attorney
IN WITNESS WHEREOF, i have hereunto sv my har}ci and a 1"I ixcd the official seal of the 'ity of San
Luis Obispo, California, this, "-day of 4
Lee Pr'ce
Interim City Clerk
R 10701
Resolution No. 10701, Page 3
EXHIBIT A
APPENDIX A
To the City of San Luis Obispo Resolution in Favor of
National Revenue -Neutral Carbon Fee and Dividend Legislation
Findings:
1. Causation: there is a consensus 1, 2 among climate scientists, domestic and international science
bodies such as the National Academy of Sciences and the International Panel on Climate
Change and the World Meteorological Organization (IPCC, WMO), that greenhouse gas
emissions from human activities such as the burning of fossil fuels are driving the current rise in
global temperatures and climate change,3
2. Mitigation (Return to 350 ppm or below): the weight of scientific evidence also indicates that a
return from the current concentration of more than 400 parts per million ("ppm") of carbon dioxide
CO2") in the atmosphere to 350 ppm CO2 or less is necessary to slow or stop the rise in global
temperatures ,4
3. Endangerment: further increases in global temperatures pose imminent and substantial dangers
to human health 5, the natural environment6, the economy 7, national security8, and an
unacceptable risk of medium and long-term future harms,
a. Climate change caused by global warming -related greenhouse gas emissions including
CO2 already is leading to large-scale problems including increasing acidity of oceans and
rising sea levels; more frequent, extreme, and damaging weather events such as heat
waves, storms, heavy rainfall and flooding, and droughts; more frequent and intense
wildfires; disrupted ecosystems affecting biodiversity and food production; and an
increase in heat -related deaths10; and
b. We are approaching a dangerous threshold whereby, if it is crossed, humans will no
longer be able to influence the course of future global warming, as tropical forests, peat
bogs, permafrost and the oceans" switch from absorbing carbon to releasing it; and
4. Local effects on agriculture: the following effects of climate change are likely to occur if we do not
reduce our CO2 emissions to 350 ppm by 2050:
a. Bay Area and Central Coast temperatures are predicted to rise significantly. The number
of days over 95° is expected to increase from an average of 12 per year today to 20-29
by 2050 and 32-65 by 2100,12
b. Given increased heat waves, droughts and higher temperatures, 13, California farmers will
face an increasingl r uncertain future, where current crops may fail and water maybe
even more scarce, 4, 15, 16
c. If heat -trapping emissions continue to rise at today's levels the snowpack in the Sierra
Nevada is likely to decline as much as 40% from historical levels by 2050 and as much
as 90% by 2100, thus severely reducing the availability of water in summer. However if
we make significant emissions reductions the decline by 2050 could be as little as 12%.17
d. Two thirds of California's 2,400 endemic plants could lose more than 80% of their current
ranges if climate change worsens, 18
e. The number of chilling hours at the end of this century is expected to be half or less than
during the 20th century such that many currently lucrative crops will no longer be
commercially viable in large areas of California,1 20, 21
R 10701
Resolution No. 10701, Page 4 San Luis Obispo City Council, March 15, 2016
EXHIBIT A Support for National Revenue Neutral Carbon Fee and Dividend Legislation
Page 2 of 5
f. We can expect a range expansion and rapid increase in populations of insects already
present and the arrival of new insect pests to newly warmer regions amid ecosystem
changes thus negatively affecting agriculture and health ,21, zs
5. The present costs of fossil fuels are externalized: Presently the environmental, health, and social
costs of CO2 emissions are not included in prices paid for fossil fuels, but rather these
externalized costs are borne directly and indirectly by all Americans and global citizens; and
6. Co -Benefits: the measures proposed in this legislation will benefit the economy, human health,
the environment, and national security, even without consideration of global temperatures, by
correcting market distortions, reducing non -greenhouse -gas pollutants, reducing the outflow of
dollars to oil-producing countries, and improving energy security of the United States ,24
7. Benefits of Carbon Fees: phased -in carbon fees on greenhouse gas emissions are (1) the most
efficient, transparent, and enforceable mechanism to drive an effective and fair transition to a
domestic -energy economy, (2) will stimulate investment in alternative -energy technologies, and
3) will give all businesses powerful incentives to increase their energy -efficiency and reduce their
carbon footprints in order to remain competitive ,25
8. _Equal Monthly Per -Person Dividends: monthly dividends (or "rebates") from carbon fees paid
equally to every American household will stimulate the American economy and help ensure that
families and individuals can afford greenhouse gas -free energy,
Therefore the National Revenue Fee and Dividend Act26 contains the following elements:
Collection of Carbon Fees/Carbon Fee Trust Fund: The Act would impose a carbon fee on all
fossil fuels and other greenhouse gases at the point where they first enter the economy. The fee
shall be collected by the Treasury Department. The fee on that date shall be $15 per ton of CO2
equivalent emissions and result in equal charges for each ton of CO2 equivalent emissions
potential in each type of fuel or greenhouse gas. The Department of Energy shall propose and
promulgate regulations setting forth CO2 equivalent fees for other greenhouse gases including at
a minimum methane 27, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons (HFCs),
perfluorocarbons, and nitrogen trifluoride. The Treasury shall also collect the fees imposed upon
the other greenhouse gases. All fees are to be placed in the Carbon Fees Trust Fund and be
rebated 100% to American households as outlined below.
Emissions Reduction Targets: To align US emissions with the physical constraints identified by
the Intergovernmental Panel on Climate Change (IPCC) to avoid irreversible climate change, the
yearly increase in carbon fees including other greenhouse gases, shall be at least $10 per ton of
CO2 equivalent each year. Annually, the Department of Energy shall determine whether an
increase larger than $10 per ton per year is needed to achieve program goals. Yearly price
increases of at least $10 per year shall continue until total U.S. CO2 -equivalent emissions have
been reduced to 10% of U.S. CO2 -equivalent emissions in 1990.
3. Equal Per -Person Monthly Dividend Payments: Equal monthly per -person dividend payments
shall be made to all American households ('/2 payment per child under 18 years old, with a limit of
2 children per family) each month. The total value of all monthly dividend payments shall
represent 100% of the total carbon fees collected per month.
4. Border Adjustments: In order to ensure that U.S.-made goods can remain competitive at home
and abroad and to provide an additional incentive for international adoptions of carbon fees,
Carbon -Fee Equivalent Tariffs shall be charged for goods entering the U.S. from countries
without comparable Carbon Fees/Carbon Pricing. Carbon -Fee -Equivalent Rebates shall be used
to reduce the price of exports to such countries and to ensure that U.S. goods can remain
R 10701
Resolution No. 10701, Page 5 San Luis Obispo City Council, March 15, 2016
EXHIBIT A Support for National Revenue Neutral Carbon Fee and Dividend Legislation
Page 3 of 5
competitive in those countries. The Department of Commerce will determine rebate amounts and
exemptions if any.
Anderegg, William R. L. et al. "Expert Credibility in Climate Change." Proceedings of the National
Academy of Sciences 107.27 (2010): 12107-12109. www.pnas.org.
z Doran, Peter T., and Maggie Kendall Zimmerman. "Examining the Scientific Consensus on Climate
Change." Eos, Transactions American Geophysical Union 90.3 (2009): 22. CrossRef.
IPCC, 2013: Summary for Policymakers. Cambridge University Press, Cambridge, United Kingdom
and New York, NY, USA: Intergovernmental Panel on Climate Change, 2013. Climate Change
2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment
Report of the Intergovernmental Panel on Climate Change.
Hansen, J. et al. "Target Atmospheric CO2: Where Should Humanity Aim?" The Open Atmospheric
Science Journal 2.1 (2008): 217-231. arXiv.org.
McMichael, Anthony J, Rosalie E Woodruff, and Simon Hales. "Climate Change and Human
Health: Present and Future Risks." The Lancet 367.9513 (2006): 859-869. CrossRef.
Hughes, 1. "Biological Consequences of Global Wanning: Is the Signal Already Apparent?" Trends
in Ecology & Evolution 15.2 (2000): 56-61.
Nordhaus, William D. "A Review of the `Stern Review on the Economics of Climate Change."'
Journal of Economic Literature 45.3 (2007): 686-702
Hagel, Chuck. Department of Defense: 2014 Climate Change Adaptation Roadmap. Alexandria,
VA: Office of the Deputy Under Secretary of Defense for Installations and Environment, 2014.
Borgerson, Scott G. "Arctic Meltdown." Foreign Affairs Apr. 2008. Foreign Affairs.
10 IPCC, 2013: Summary, for Policymakers.
11 Archer, David, Bruce Buffett, and Victor Brovkin. "Ocean Methane Hydrates as a Slow Tipping
Point in the Global Carbon Cycle." Proceedings of'the National Academy of Sciences 106.49
2009): 20596-20601. www.pnas.org.
1z From Boom to Bust? Climate Risk in the Golden State, Risky Business Project, March 20, 2015,
http://www. georgetownclimate.org/resources/from-boom-to-bust-climate-risk-in-the-golden-state
Moser, Susanne, Julia Ekstrom, and Guido Franco. Our Changing Climate 2012 - Vulnerability &
Adaptation to the Increasing Risks from Climate Change in California - A Summary Report on
the Third Assessment. California Climate Change Center, 2012.
R 10701
Resolution No. 10701, Page 6 San Luis Obispo City Council, March 15, 2016
EXHIBIT A Support for National Revenue Neutral Carbon Fee and Dividend Legislation
Page 4 of 5
is Gleick, Peter H. Water -- the Potential Consequences of' Climate Variability and Change for the
Water Resources of the United States. Pacific Institute for Studies in Development, Environment,
and Security, 2000. agris.fao.org.
S Joyce, B. et al. Climate Change Impacts on Water Supply and Agricultural Water Management in
California's Western San Joaquin Valley, and Potential Adaptation Strategies. California
Climate Change Center, 2009.
16 Purkey, D. R. et al. "Robust Analysis of Future Climate Change Impacts on Water for Agriculture
and Other Sectors: A Case Study in the Sacramento Valley." Climatic Change 87.1 (2007): 109-
122. link. springer. com.
17 Cayan, Dan et al. Climate Change Scenarios and Sea Level Rise Estimates for the California 2009
Climate Change Scenarios Assessment. California Climate Change Center, 2009.
S Meadows, Robin. "UC Scientists Help California Prepare for Climate Change" in California
Agriculture." California Agriculture 63.2 (2009): 56-58.
19 Weare, Bryan C. "How Will Changes in Global Climate Influence California?" California
Agriculture 63.2 (2009): 59-66.
20 Baldocchi, Dennis, and Simon Wong. "Accumulated Winter Chill Is Decreasing in the Fruit
Growing Regions of California." Climatic Change 87.1 (2007): 153-166. link. springer. com.
zl Luedeling, Eike, Minghua Zhang, and Evan H. Girvetz. "Climatic Changes Lead to Declining
Winter Chill for Fruit and Nut Trees in California during 1950-2099." PLoS ONE 4.7 (2009):
e6166. PLoS Journals.
Z' Trumble, John T., and Casey D. Butler. "Climate Change Will Exacerbate California's Insect Pest
Problems." California Agriculture 63.2 (2009): 73-78.
z3 Bale, Jeffery S. et al. "Herbivory in Global Climate Change Research: Direct Effects of Rising
Temperature on Insect Herbivores." Global Change Biology 8.1 (2002): 1-16. Wiley Online
Library.
z4 Nystrom, Scott, and Patrick Luckow. The Economic, Climate, Fiscal, Power, and Demographic
Impact of a National Fee -and -Dividend Carbon Tax. Regional Economic Models, Inc. (REMI)
and Synapse Energy Economics, Inc., 2014.
zs
Nystrom, Scott, and Patrick Luckow (REMI study)
2 1 "Carbon Fee and Dividend." Citizens' Climate Lobby. N.p., n.d
https://citizensclimatelobby.org/carbon-fee-and-dividend/. 12 Apr. 2015.
Methane is a much more potent greenhouse gas than CO2 with both direct and indirect effects
contributing to warming. It is therefore important to place a fee on methane that leaks to the
R 10701
Resolution No. 10701, Page 7 San Luis Obispo City Council, March 15, 2016
EXHIBIT A Support for National Revenue Neutral Carbon Fee and Dividend Legislation
Page 5 of 5
atmosphere. Some of this leakage will occur after the fee has been assessed on methane under
the assumption that it will be burned to yield the less potent CO2. To ensure the integrity of the
program and that markets receive accurate information with regard to the climate forcings caused
by various fossil fuels, the carbon fee shall be assessed on such leaked methane at a rate
commensurate with the global warming potential ("GWP") of methane including both its direct
and indirect effects. Given the importance of tipping points in the climate system, the 20 -year
GWP of methane shall be used to assess the fee, and not the l 00 -year GWP. As proper
accounting for such leakage is necessary for honest assessment of progress towards program
goals, reasonable steps to assess the rate of methane leakage shall be implemented, and leaked
methane shall be priced accordingly. The entity responsible for the leaked methane shall be
responsible for paying the fee.
R 10701
Governor Jerry Brown
The Honorable Dianne Feinstein
The Honorable Barbara Boxer
The Honorable Lois Capps
The Honorable Sam Farr
San Luis Obispo City Council
San Luis Obispo Council of Governments
The Honorable Bill Monning
The Honorable Katcho Achadjian
The Honorable Anthony Cannella
The Honorable Sam Blakeslee
The Honorable Luis Alejo
The Honorable Hannah Beth Jackson
The Honorable Das Williams
San Luis Obispo County Board of Supervisors
Monterey County Board of Supervisors
Santa Barbara County Board of Supervisors
Paso Robles City Council
Pismo Beach City Council
Morro Bay City Council
Arroyo Grande City Council
Atascadero City Council
Grover Beach City Council
Monterey City Council
Seaside City Council
Carmel by the Sea City Council
Distribution List
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steve.lavagnino@countyofsb.org
peter.adam@countyofsb.org
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SupervisorCarbajal@sbcbosl.org
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jhill@arroyogrande.org
bharmon@arroyogrande.org
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tbrown@arroyogrande.org
kbarneich@arroyogrande.org
citycouncil@atascadero.org
CouncilMembers@grover.org
roberson@monterey.org
barrett@monterey.org
downey@monterey.org
haffa@monterey.org
smith@monterey.org
rrubio@ci.seaside.ca.us
ioglesby@ci.seaside.ca.us
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jcampbell@ci.seaside.ca.us
dpacheco@ci.seaside.ca.us
Jason@ Burnettforcarmel.com
vbeach@ci.carmel.ca.us
dallasforcarmel@gmail.com
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kktalm@aol.com
ATTACHMENT a
Distribution List
Pacific Grove City Council caseypg@yahoo.com
rudyfischer@earth link. net
bkampe@cityofpacificgrove.org
danmiller39@comcast.net
bpeake@cityofpacificgrove.org
kencunl7@icloud.com
huitt@comcast.net
dave@laredolaw.net
Salinas City Council josephg@ci.salinas.ca.us
jose.castaneda@ci.salinas.ca.us
tonyb@ci.salinas.ca.us
stevem@ci.salinas.ca.us
gloriad@ci.salinas.ca.us
kimbleyc@ci.salinas.ca.us
jyl@ci.salinas.ca.us
Marina City Council bdelgado62@gmail.com
frank@oconnell4us.com
gmorton@montereyfamilylaw.com
nancyamadeo@gmail.com
davidwaynebrown@aol.com
City Council of King City rcullen@farmersagent.com
karenjernigan2007@gmail.com
mike.lebarre@att.net
bel.insurance@yahoo.com
Soledad City Council info@cityofsoledad.com
Greenfield City Council jhuerta@ci.greenfield.ca.us
rrodriguez@ci.greenfield.ca.us
Isantibanez@ci.greenfield.ca.us
atorres@ci.greenfield.ca.us
walker@ci.greenfield.ca.us
City Council of Sand City sandcitymyr@aol.com
jerry@sandcityca.org
maryann@sandcityca.org
todd@sandcity.org
craig@sandcityca.org
Del Rey Oaks City Council 831-394-6421
Gonzales City Council 831-675-2644
Santa Barbara City Council HSchneider@SantaBarbaraCA.gov
hwhite@santabarbaraca.gov
fhotchkiss@santabarbaraca.gov
ghart@santabarbaraca.gov
JDominguez@SantaBarbaraCA.gov
rrowse@santabarbaraca.gov
cmurillo@santabarbaraca.gov
Goleta City Council tvallejo@cityofgoleta.org
jfarr@cityofgoleta.org
raceves@cityofgoleta.org
mbennett@cityofgoleta.org
atpperotte@cityofgoleta.org
Santa Maria City Council Council@cityofsantamaria.org
Solvang City Council jimr@cityofsolvang.com
hansduus@gmail.com
joan.jamieson@cityofsolvang.com
rci@dock.net
Distribution List
Lompoc City Council b_lingl@ci.lompoc.ca.us
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d_holmdahl@ci.lompoc.ca.us
j_mosby@ci.lompoc.ca.us
Carpinteria City Council GreggCarty@ci.carpinteria.ca.us
FredShaw@ci.carpinteria.ca.us
AlClark@ci.carpinteria.ca.us
WadeNomura@ci.carpinteria.ca.us
BradStein@ci.carpinteria.ca.us
Buellton City Council eda1248@comcast.net
danb@cityofbuellton.com
jconnolly@syvuhsd.org
lelovitz@gmail.com
hollys@cityofbuellton.com
Guadalupe 918 Obispo St., Guadalupe, CA 93434
San Luis Obispo County School Districts:
Almond Acres Charter Academy 805-467-2098
Atascadero Unified School District 5601 West Mall, Atascadero CA 93422
805) 462-4200
Bellevue -Santa Fe Charter School 805-595-9013
Cayucos Elementary School District 805-995-2876
Coast Unified School District 805-927-0312
Cuesta College (San Luis Obispo Community College) P.O. Box 8106, Highway 1, San Luis
Obispo CA 93403 (805) 546-3100
Grizzly ChalleNGe Charter School Camp SLO, 10 Sonoma Avenue, Building
942, San Luis Obispo, CA 93405 (805) 782-
6882
Lucia Mar Unified School District 602 Orchard Street, Arroyo Grande CA
93420 (805) 474-3000
Paso Robles Joint Unified School District 805-237-3339
Pleasant Valley Joint Union Elementary School District 805-467-2306
San Luis Coastal Unified School District district@slcusd.org
San Luis Obispo County Office of Education 3350 Education Drive San Luis Obispo, CA
93405 (805) 543-7732
San Miguel Joint Union School District 1601 L Street, San Miguel CA 93451 (805)
467-3216
Shandon Joint Unified School District 805-238-0777
Templeton Unified School District 805-434-5879
Monterey County School Districts:
Alisal Union School District 831.753.5709
Big Sur Unified School District 805.753.5610
Bradley Union School District 805.472.2339
Carmel Unified School District 831.626.4052
Chualar Union School District 831.679.2071
Gonzales Unified School District 831.675.1172
Graves School District 831.422.3211
Greenfield Union School District 831.674.3712
King City Union School District 831.385.0372
Lagunita School District 831.449.9671
Mission Union School District 831.678.0491
Monterey Peninsula Unified School District 831.649.4175
North Monterey County Unified School District 831.633.2937
Pacific Grove Unified School District 831.646.6500
Salinas City Elementary School District 831.753.5610
Distribution List
Salinas Union High School District 831.796.7005
San Antonio Union School District 831.385.4240
San Ardo Union School District 831.627.2078
San Lucas Union School District 831.382.4088
Santa Rita Union School District 831.442.1791
Soledad Unified School District 831.678.2866
South Monterey County Joint Union HS District 831.385.0695
Spreckels Union School District 831.455.1871
Washington Union School District 831.484.2828
Santa Barbara County School Districts:
Ballard School District 805) 688-7325
Blochman Union School District 805) 937-2291
Buellton Union School District 805) 686-2719
Carpinteria Unified School District 805) 684-0218
Cold Spring School District 805) 969-0787
College School District 805) 686-7305
Cuyama Joint Unified School District 661) 766-2255
Goleta Union School District 805) 692-0857
Guadalupe Union School District 805) 343-6155
Hope School District 805) 687-7954
Lompoc Unified School District 805) 735-8452
Los Olivos School District 805) 688-4885
Montecito Union School District 805) 969-9714
Orcutt Union School District 805) 938-8919
Santa Barbara Unified School District 805) 963-5685
Santa Maria -Bonita School District 805) 928-6451
Santa Maria Joint Union High School District 805) 928-9916
Santa Ynez Valley Union High School District 805) 686-4454
Solvang School District 805) 688-6410
Vista del Mar Union School District 805) 686-8536