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Funding Guidelines for

Administering Agencies

State law requires CARB to develop guidance for all State agencies that receive appropriations from the Greenhouse Gas Reduction Fund, including guidance on reporting, quantification methods, and maximizing benefits to disadvantaged communities. To comply with this law, CARB developed Funding Guidelines to help these agencies use their appropriations in a way that reduces greenhouse gases, furthers the purposes of AB 32, maximizes benefits to disadvantaged communities, and meets the other statutory requirements.

On September 4, 2015, CARB released the proposed "Cap-and-Trade Auction Proceeds: Funding Guidelines for Agencies that Administer California Climate Investments." ARB staff presented these Funding Guidelines at a public Board hearing on September 24, 2015. The final version of the document reflects the Board's minor revisions from the hearing. A supplement was released in December 2016 for FY 2016-17 and an update is in progress.

Funding Guidelines Update - 2017

CARB is in the process of updating the adopted Funding Guidelines to reflect new legislative requirements and lessons learned. To receive meeting notices and other information on this update, please sign up for the Auction Proceeds Email List.

CARB will post a draft version of the proposed updates on this website, followed by details on upcoming community workshops in Summer 2017 to get public input. CARB will be seeking public comment prior to finalizing the document and will provide instructions on how to provide comments at that time. Finalization of the Funding Guidelines is expected in Fall 2017.

In 2016, AB 1550 (Gomez, Chapter 369, Statues of 2016) modified the SB 535 investment requirements for disadvantaged communities and provided new investment minimums for low-income households and low-income communities. As a result, CARB is updating the Funding Guidelines to incorporate these new requirements. In February 2017, the California Environmental Protection Agency (CalEPA) and CARB held joint public meetings to discuss use of Cap-and-Trade auction proceeds to fund projects that reduce greenhouse gases in disadvantaged and low-income communities to implement SB 535 and AB 1550. Public input was sought on identification of these communities, evaluating benefits to disadvantaged and low-income communities, and proposed updates to the Funding Guidelines. For information on these meetings, see the Public Meetings page. Following these public meetings, CalEPA released the updated Designations of Disadvantaged Communities for California Climate Investments in April 2017. Comments received from these community meetings are also considered in the proposed updates to the Funding Guidelines. More information on SB 535 and AB 1550 implementation is available here.

Funding Guidelines Supplement For FY 2016-17 Funds

The Funding Guidelines Supplement for FY 2016-17 Funds and en español (Supplement), is to be used in conjunction with the Funding Guidelines, and provides interim direction for administering agencies implementing the September 2016 funding appropriations established in the Budget Act of 2016 (AB 1613, Chapter 370, Statutes of 2016).

The purpose of this Supplement is to provide:

  1. Disadvantaged community investment targets for all programs based on the FY 2016-17 budget appropriations and current statutory requirements under SB 535.
  2. For new programs created under 2016 legislation, criteria for how to determine whether proposed projects provide benefits to disadvantaged communities, in accordance with current requirements under SB 535.
  3. For new programs created under 2016 legislation, guidance on reporting requirements.

Note on AB 1550 Implementation: This Supplement is focused on the FY 2016-17 definition of disadvantaged communities and minimum investment targets; it does not include any direction on investment targets or criteria to meet the requirements enacted under AB 1550 (Gomez, Chapter 369, Statutes of 2016). Guidance on the implementation of AB 1550 will be included in the 2017 update to the Funding Guidelines. The broader Funding Guidelines update in 2017 will include public workshops and multiple opportunities for public input on how best to establish a consistent set of requirements and recommendations for implementing AB 1550 requirements across all GGRF programs.

Board Hearing and Workshop Archives

To receive electronic notices of meetings and materials, you can sign up for the Auction Proceeds Email List.

For questions, please contact:
Monique Davis at 916-322-7304 or via e-mail