"California implemented a CO2 cap-and-trade system in 2013. SB 535 and AB 1550 require that at least 35% of the revenue earned through the system must be allocated towards projects that benefit “priority populations”. However, the competitive nature of the grant systems used to allocate most of the revenue is thought to conflict with this goal. This study used a variety of multivariate regression techniques to investigate if the expressed intentions Sb 535 and AB 1550 of are actually being followed. The results of this study suggest that the funding requirements given by SB 535 and AB 1550 have been successfully implemented, but have not fully rejected the prevailing forces economic and racial privilege has on competitive grant funding allocations. The results of this study also offere important conclusions surrounding the best functional form to use when explaining the allocation of cap-and-trade revenue in California. "