SB 840, by lead authors Senators Monique Limón and Mike McGuire, addresses the state’s approach to reducing greenhouse gas emissions. This bill reauthorizes Cap and Trade, the market-based compliance mechanism that reduces emissions while generating funds to invest in climate solutions, through 2045. Cap and Trade originally set declining annual aggregate emissions limits for greenhouse gas sources from January 1, 2021, to December 31, 2030.
SB 840 allocates $3 billion of the Greenhouse Gas Reduction Fund each year for ongoing climate priorities, plus at least $1 billion annually for legislative priorities in future years.
The Cap and Trade program is our most cost effective policy for reducing emissions while also generating billions of dollars for climate programs that support clean energy, wildfire resilience, healthy habitats, urban greening and community protections. Reauthorization ensures that we keep this framework in place. It sends a strong market signal and secures the funding to make Californians healthier, safer and more prosperous by investing in real climate solutions.
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