State Legislative Update 7/18

State Legislative Update: Legislature Passes Bond Measures, Departs on Summer Recess
In the days leading up to the Fourth of July holiday the California Legislature was working furiously to pass two Bond measures before adjourning for their month-long summer recess commencing on July 5^th. They were ultimately successful in negotiating and passing an education bond and a climate bond that will both appear on the November General Election ballot. The climate bond, which will appear on the ballot as Prop 4, includes around $3.8 billion in funding for water infrastructure, and the remainder is dedicated to other Climate program categories such as wildfire, coastal adaptation, energy, extreme heat and other related programs. For more detail about categories of interest funded in the climate bond.

Proposition 4: Funding Categories of interest to CASA Member Agencies

• Safe Drinking Water, Drought, Flood and Water Resilience – $3.8 billion (Section 91000 / Chapter 2)
  • $1,885,000,000 to protect and increase California water supply and water quality.
    • $610,000,000 to the State Water Resources Control Board for grants or loans that improve water quality or help provide clean, safe, and reliable drinking water
    • $386,250,000 to the Department of Water Resources for projects related to groundwater storage, groundwater banking, groundwater recharge, or instream flow projects that support the conjunctive use of groundwater and surface water supplies. Of the funds made available pursuant to this subdivision, a minimum of twenty-five million dollars ($25,000,000) shall be for projects that provide direct benefits to tribal communities
    • $386,250,000 to the State Water Resources Control Board for grants and projects related to water reuse and recycling
    • $62,500,000 for capital investments in brackish desalination, contaminant and salt removal, and salinity management projects to improve California water and drought resilience. Priority shall be given to projects that use new incremental eligible renewable energy resources during operation and reduce greenhouse gas emissions associated with their construction and operation.
  • $1,140,000,000 to reduce flood risk and improve stormwater management.
    • $110,000,000 to the State Water Resources Control Board for grants for multiple-benefit urban stormwater management projects
  • $50,000,000 shall be available to the water board for loans or grants for projects that will address water quality problems arising in the California-Mexico cross-border rivers and coastal waters.
• Wildfires and Forest Resilience – $1.5 billion (Section 91500 / Chapter 3)
• Sea Level Rise and Coastal Resilience – $1.2 billion (Section 92000 / Chapter 4)
  • $415,000,000 for projects identified by the State Coastal Conservancy for coastal resilience projects and programs, including, but not limited to, grants and expenditures to protect, restore, and increase the resilience of beaches, bays, coastal dunes, wetlands, coastal forests, watersheds, trails, and public access facilities.
  • $350,000,000 to the State Coastal Conservancy for the purpose of coastal and combined flood management projects and activities for developed shoreline areas, including areas with critical community infrastructure including, but not limited to, transportation and port infrastructure at risk of current flooding and flooding due to sea level rise. Funds shall be allocated to multiple-benefit projects that improve public safety, including shoreline resilience projects designed to address flooding, sea level rise, and shoreline stability that include engineering with nature or nature-based features. These funds shall be available to local agencies as matching funds for federally funded coastal flood risk management and flood risk management projects.
  • $135,000,000 for deposit into the California Ocean Protection Trust Fund for grants to increase resilience from the impacts of climate change. Preference shall be given to projects that conserve, protect, and restore marine wildlife and healthy ocean and coastal ecosystems, including, but not limited to, estuarine habitat, kelp forests, eelgrass meadows, and native oyster beds, or that maintain the state’s system of marine protected areas, and support sustainable fisheries. Funding may be used to purchase and install ocean current mapping infrastructure and new maritime research infrastructure to reduce emissions
  • $75,000,000 to implement the California Sea Level Rise Mitigation and Adaptation Act of 2021
• Protect Biodiversity and Accelerating Nature-Based Climate Solutions – $1.2 billion (Section 93000, Chapter 6)
• Clean Air – $850 million (Section 94500, Chapter 9)
  • $325,000,000 to the California Infrastructure and Economic Development Bank, the State Energy Resources Conservation and Development Commission, or any other entity chosen by the Legislature, upon appropriation by the Legislature, for the public financing of clean energy transmission projects that are necessary to meet the state’s clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects.
  • $50,000,000 to the State Energy Resources Conservation and Development Commission for grants or loans to support the Long-Duration Energy Storage Program. Eligible uses may also include zero-emissions distributed energy backup assets, virtual power plants, and demand side grid support.
• Park Creation and Outdoor Access – $700 million (Section 94000, Chapter 8)
  • $25,000,000 to the Natural Resources Agency for grants to nature and climate education and research facilities, nonprofit organizations and public institutions, natural history museums, California zoos and aquariums accredited by the Association of Zoos and Aquariums, and geologic heritage sites that serve diverse populations. Grants may be used for buildings, equipment, structures, and exhibit galleries that present collections to promote climate, biodiversity, and cultural literacy. Projects may support species recovery and biodiversity protection in order to advance the state’s 30×30 conservation goal.
• Extreme Heat Mitigation – $450 million (Section 92500, Chapter 5)
• Climate Smart, Sustainable & Resilient Farms, Ranches and Working Lands – $300 million (Section 93500, Chapter 7)
  • $65,000,000 shall be available for grants to promote practices on farms and ranches that improve soil health, or accelerate atmospheric carbon removal or soil carbon sequestration.
  • $40,000,000 shall be available for the State Water Efficiency and Enhancement Program to promote on farm water use efficiency with a focus on multiple-benefit projects that improve resilience to climate change and save water on California agricultural operations.

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