Beginning in 2014, carbon cap-and-trade auction revenues brought billions of dollars each year into California’s Greenhouse Gas Reduction Fund. Public Advocates, in coalition with climate justice allies, not only worked to ensure a dedicated source of revenue for affordable housing and public transit from these revenues, but tackled the thorny question of how to ensure that all of the revenues in the Fund benefited residents of disadvantaged communities. The entire history of Public Advocates’ work demonstrated it was not enough that public investments be made in those communities: such investments could just as easily displace existing residents as benefit them. Reflecting on that history, and on the guiding principle that public policy and investment should follow the lead of directly-impacted residents, who know the needs and priorities of their communities, we developed a framework. That framework, which directs funds to priorities identified by the community, which provide a substantial benefit targeted at low-income residents, and avoid harmful impacts, was incorporated into California statute and the guidelines of the CA Air Resources Board. It provides a model for community-led decision making that not only guides the investment of billions of dollars in state funding to truly meet the needs of the communities in which those investments are made, but is also being considered for climate investments that may be made at the federal level.