Skip to Content
Streetsblog California home
Streetsblog California home
Log In
Cap-and-Trade

Early Draft of Transformative Climate Communities Guidelines Released

One of the benefits of California's cap-and-trade program is that it produces revenue that can be invested in exploring ways of reducing greenhouse gas emissions beyond just capping them. For example, the Affordable Housing and Sustainable Communities program makes the connection between where and how people live and how they get around, which affects how much greenhouse gas they emit. As one of the few state sources of affordable housing money available, AHSC encourages developers to tie transportation in with housing at early planning stages.

In the last session, the legislature created a new program to do something similar for communities. The Transformative Climate Communities program, funded with $140 million from cap and trade under A.B. 2722, will focus on encouraging public participation and coordination among state agencies to reduce greenhouse gas emissions and “provide local economic, environmental, and health benefits to disadvantaged communities.”

The money—pending approval by the Strategic Growth Council and other official channels—will likely go to Fresno ($70 million), Los Angeles ($35 million), and one more as-yet-unnamed location ($35 million). The program includes smaller grants for up to ten other communities to help them prepare for future possible funding rounds.

The idea is to engage people, institutions, agencies, community groups, and other organizations to find a way to transform those communities into sustainable, equitable, connected, economically and environmentally healthy places to live, so they can serve as a model to guide future state investments.

It's one of those crazy aspirational ideas that California keeps coming up with—and keeps finding a way to succeed with.

An early “scoping” draft of the program's guidelines was just released by the Strategic Growth Council “to provide an initial framework for public comment.” Comments on this draft can be submitted until January 9 to tccpubliccomments (at) sgc.ca.gov.

The preliminary list of objectives for the program are to:

    • Maximize greenhouse gas emissions reduction
    • Build, strengthen and sustain local leadership and grassroots engagement in civic and community development
    • Implement Sustainable Communities Strategies (required under S.B. 375 as part of Regional Transportation Plans)
    • Improve environmental, social, and health equity
    • Expand economic opportunity
    • Increase resilience
    • Leverage funding
    • Quantify and evaluate impacts

SGC staff plan to release revised draft guidelines, incorporating any comments received, in late January or early February, at which time they will also hold public workshops throughout the state.

Stay in touch

Sign up for our free newsletter

More from Streetsblog California

The Week in Short Videos

Day of Remembrance, Robot Encounters, and Trump Loves Climate Change.

November 21, 2025

Friday’s Headlines

Transit agencies working with Waymo?

November 21, 2025

Thursday’s Headlines

Posted from the Oakland airport. I don't have any more travel until the end of the year so we'll be on a "normal schedule" until 2026.

November 20, 2025

Talking Headways Podcast: Emotional Consumption in China

High-speed rail has completely transformed the country. Think about that sentence: "High-speed rail has completely transformed the country." When was the last time something positive like that happened here?

November 20, 2025

Want Vancouver Skytrain in San Diego? Support People Mover to the Airport.

Vancouver is not alone in running people movers on urban rail networks. Copenhagen built its entire 26.9-mile metro using the same technology used on a Saudi Arabian university’s APM.

November 20, 2025

Cutting Federal Transit Funding Won’t Close Budget Gaps — But Will Make Transportation Less Affordable

The Trump administration's proposal to eliminate the mass transit account of the Highway Trust Fund would be short-sighted, ineffective, and ruinous, a new analysis finds.

November 19, 2025
See all posts