The state Legislature and Governor are actively discussing proposals to reauthorize the Cap-and-Trade program and reform the market and expenditure program. SPUR believes that Cap-and-Trade is one of California’s most effective tools for reducing greenhouse gas (GHG) emissions and providing critical funding for sustainable transportation and transit-oriented affordable housing. This letter expresses support for reauthorizing the program and recommends reforms to the public transit funding programs under the Greenhouse Gas Reduction Fund (GGRF) umbrella. We urge the state to add flexibility so that there is more funding to meet the diversity of transit funding needs across the state, and greater predictability in operating funding from year to year, as well as specific ways to achieve those goals.

SPUR submitted letters to both SamTrans and VTA urging both boards to opt into Senate Bill 63, legislation that would authorize a future regional ballot measure to fund transit. SPUR has worked extensively with the bill's authors and stakeholders in both San Mateo and Santa Clara counties to encourage participation in a future regional measure.

This letter supports the budget agreement between the California Assembly and Senate, which would provide a loan for Bay Area transit operators facing near-term operating shortfalls and restore other relief funding, amounting to $1.85 billion. It also urges the Governor to honor existing public transit funding commitments and to commit to supporting public transit service in the emerging Cap-and-Invest negotiations.

The Legislature and Administration have signaled that they would like to reauthorize the Cap-and-Trade program in 2025, as the program expires in 2030 and to reduce volatility in auction proceeds. SPUR's believes that the reauthorization of the Cap and Trade is an opportunity for the state to provide more predictable funding for transit operations, which would in turn help the state meet its climate goals. This letter provides five ideas to restructure the public transit programs that are funded by Cap and Trade revenues through the Greenhouse Gas Reduction Fund.