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California Environmental Protection Agency

The California Global Warming Solutions Act of 2006 required the Air Resources Board (ARB) to adopt a statewide program that could include market-based compliance mechanisms to reduce greenhouse gas emissions in the state to at least 1990 levels by 2020. The Board subsequently developed several programs under this authorization, including a market based Cap-and-Trade Program. Funds received by the State from the distribution of emissions allowances as part of this program are deposited in the Greenhouse Gas Reduction Fund and, upon appropriation by the Legislature, must be used to further reduce emissions of greenhouse gases. The State Budget for Fiscal Year 2014-2015 included $832 million in appropriations from this Fund to administering agencies for investment in a number of specified programs.