Senator Henry Stern calls for Southern California to secure a fair share of Cap-and-Trade revenues, pointing to the region’s heavy congestion, pollution, and transit needs. He outlines priorities including more frequent bus and rail service, upgrades to the G Line, and accelerating fleet electrification—all with an equity lens to ensure community benefits. Linking transit investment directly to public health by noting the South Coast Air Basin’s “extreme non-attainment” of federal ozone standards, Stern underscores how transit funding is critical for clean air and climate action as well as mobility.
“…[If] the State is going to reauthorize this program and commit billions more in revenue, Southern California needs its fair share of those dollars.” – Senator Henry Stern, CA-27
Senator Stern, the Los Angeles Legislative Delegation’s letter to Governor Newsom, Pro Tem McGuire, and Speaker Rivas calls for $3.3 billion in transit investments for the region as part of the reauthorization of California’s Cap-and-Trade program and the Greenhouse Gas Reduction Fund (GGRF). For readers who may not follow state climate policy, why is that connection so important?
Cap-and-Trade is California’s main tool for cutting greenhouse gas emissions. Large polluters—such as oil refineries, power plants, and major manufacturers—must purchase permits for the emissions they produce. The money from those permits flows into the Greenhouse Gas Reduction Fund, which is then reinvested in projects that further reduce emissions, such as clean energy, affordable housing near transit, and public transportation.
What we’re saying is: if the state is going to reauthorize this program and commit billions more in revenue, Southern California needs its fair share of those dollars. We’re not asking for a handout—we’re asking that investments match the reality on the ground.
The reality is that Southern California has been shortchanged for too long. When you look at the numbers, our region carries over 21 billion daily freeway miles traveled. Los Angeles County alone records nearly 9 billion. That means our commuters are stuck in the worst gridlock, breathing the dirtiest air, and spending more of their paychecks just to get to work. If the state is serious about fairness and about meeting our climate obligations, then Los Angeles needs an annual, ongoing commitment to transit investment.
Critics will say that the major upgrades to Union Station are helping Los Angeles get ready for high-speed rail, and that is a substantial amount of funding already going to transit. Why should Los Angeles get more for transit?
We support high-speed rail and the upgrades to Union Station, but millions of Angelenos already depend on Metro bus and rail, Metrolink, and municipal operators. Service has not kept pace with need. Transit ridership is still 25–30% below pre-pandemic levels, even as freeway traffic has nearly fully rebounded. Without significant investment, super-commuters from my parts of the San Fernando Valley remain locked into long, expensive car trips.
Now, if you want to broaden the horizon and take a look at the entire Cap-and-Trade (or Cap-and-Invest, as Governor Newsom proposes to call it) investment plans, I have a lot of other priorities. I am committed to reducing natural gas usage in our building sector in efforts to address Aliso Canyon and want to invest in making our electrical infrastructure smarter using grid-enabled technologies and virtual power plants to reduce skyrocketing distribution costs. There are active negotiations about the future of the Greenhouse Gas Reduction Fund.
If the Delegation is successful in securing these Cap-and-Trade funds for Southern California, what’s the expenditure plan?
We’ve outlined three buckets. First, operations to run buses and trains more frequently and reliably so people can actually choose transit over driving. Second, capital improvements to improve bus rapid transit corridors like the G Line in the San Fernando Valley. The G Line, or the Orange Line, is the backbone of transit in the San Fernando Valley. But most of the stops do not have good active transportation routes to get to the stop by walking, biking, or scootering safely. So we lose potential riders because people do not feel safe or comfortable getting to the stop. Especially as the state talks about adding housing, which The Planning Report has long covered, we need to make sure that Angelenos living in transit-oriented development have safe sidewalks, street lights, safe crossings, and bus shade and shelter.
Additionally, we would want to ensure these funds go to continuing fleet electrification, especially important in light of the Trump administration’s attack on California’s desire for clean air. Finally, we would want to invest funds in investments that will make transit faster and more reliable, such as grade separations that speed up service. And we want to make sure all of the funds are invested with an equity lens, making sure projects come with strong labor standards and tangible community benefits in South LA, the Northeast Valley, and the goods-movement corridors that are hardest hit by pollution.
Given your service as the State Senate’s Ex Officio member to the California Air Resources Board, and working on improving air quality, how does this push for more transit funding intersect with the air quality challenges of the region?
In addition to the existential threat of pollution harming the next generation of Angelenos, it is such a critical moment for the South Coast Air Basin with regard to this federal administration. The South Coast Air Basin remains in extreme non-attainment of federal ozone standards. That’s bureaucratic language for something very human—kids with asthma, seniors with heart disease, whole communities living in smog. Transportation is the single largest driver of those health burdens. This federal administration is looking at many ways to take action against California and the region. While the administration takes tools to reduce pollution away from California, I still remain concerned that our non-attainment status could become a cudgel used against us. But ultimately, investing in transit is not just about congestion; it is about public health and ensuring Angelenos'
Lastly, please elaborate: How do you foresee a reset of high-speed rail funding aligning with the broader politics of State transportation funding?
Resetting the politics of high-speed rail and cap-and-trade means making sure no region feels left behind. Los Angeles is the economic engine of the state, but our working-class commuters are paying the steepest price in time, money, and health.
The delegation’s letter sends a strong message: it’s not about sabotaging statewide projects, it’s about fairness and balance. Ultimately, we just cannot afford half-measures. If California wants to lead on climate, equity, and economic growth, we have to invest where the need and the demand are greatest. That’s here in Los Angeles.
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