Funding California Rail With Cap-and-Trade Revenue Hits a Snag

California's cap-and-trade program is one of the boldest state-level climate change policies in the U.S. By capping statewide carbon pollution and then auctioning off emissions allowances, the state hopes to both reduce greenhouse gas emissions and generate about $10.6 billion for projects to improve energy efficiency. Among other things, that money would support various rail and transit projects, including the state's high-speed rail line.

The state plans to borrow against future cap-and-trade revenues to provide a local match for $3.5 billion in federal funds for high-speed rail, according to the LA Times. But Adina Levin at Green Caltrain reports that there's been a hitch:

Auction revenue may have fallen short because reducing emissions has been easier than expected, or due to uncertainty about the program created by a pending legal challenge, or greater-than-expected trading on the secondary market.

Does this mean the cap-and-trade program is broken? In terms of meeting the state's emissions-reduction targets, probably not, says the Environmental Defense Fund. But as a revenue source for rail and transit projects, there are now some big question marks.

Elsewhere on the Network today: Urban Milwaukee reports that Milwaukee County's decision to make transit free for seniors and disabled people, regardless of income, has not worked out well for the transit system as a whole. And Biking Toronto reports on a Twitter bot tracking where people are getting hit by motorists.