California Climate Investments Legislative Guidance
California Climate Investments are driven by a suite of legislation that establishes the statutory requirements for administering appropriations from the Greenhouse Gas Reduction Fund (GGRF). Assembly Bill 32 (AB 32) is the cornerstone of legislation that has created a comprehensive strategy to reduce greenhouse gas (GHG) emissions in California.
Legislation influences California Climate Investments in a variety of ways, including:
- How auction proceeds are deposited in the GGRF and used to fund California Climate Investments;
- Requirements for expenditures from the GGRF;
- Investment minimums for priority populations;
- How much money is appropriated from GGRF; and
- Individual California Climate Investments program requirements.
Bill summaries by year the legislation was enacted:
Statutes of 2020
AB 89 (Ting, Chapter 7, Statutes of 2020)
- Reappropriates GGRF funds.
SB 74 (Mitchell, Chapter 6, Statutes of 2020)
- Reappropriates GGRF funds, appropriates GGRF funds to multiple programs for administrative purposes, and appropriates GGRF funds to existing programs administered by the California Conservation Corps and California Department of Forestry and Fire Protection for programmatic activities.
SB 115 (Committee on Budget and Fiscal Review, Chapter 40, Statutes of 2020)
- Reappropriates GGRF funds and authorizes quarterly loans from the Underground Storage Tank Cleanup Fund to the Safe and Affordable Drinking Water Fund, which supports the activities of the Safe and Affordable Funding for Equity and Resilience (SAFER) Drinking Water program.
SB 2285 (Committee on Transportation, Chapter 100, Statutes of 2020)
- Requires the California Air Resources Board to extend a deadline from December 31, 2020 to December 31, 2021 to use at least 20% of GGRF funds appropriated to the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program to support the early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
Statutes of 2019
AB 74 (Ting, Chapter 23, Statutes of 2019)
- Appropriates over $1.4 billion dollars from the GGRF for existing programs, establishes the Apprenticeships for a Green Economy program to be administered by the Workforce Development Board, and provides funds for the California Environmental Protection Agency to conduct two studies. The studies will explore strategies to reduce emissions from vehicles as well as strategies to decrease demand and supply of fossil fuels.
- Provides additional funding for fire prevention, particularly in the wildland-urban interface.
SB 200 (Monning, Chapter 120, Statutes of 2019)
- Establishes the Safe and Affordable Drinking Water Fund to support the activities of the Safe and Affordable Funding for Equity and Resilience (SAFER) Drinking Water program. The State Water Resources Control Board will administer the program, which will fund projects that promote an adequate and affordable supply of safe drinking water in both the near and long term for low-income communities.
AB 1237 (Aguiar-Curry, Chapter 357, Statutes of 2019)
- Sets requirements specifying how agencies must post the guidelines for the California Climate Investments programs they administer on their website.
Statutes of 2018
AB 2377 (Irwin, Chapter 868, Statutes of 2018)
- Requires CDFA to establish a technical assistance grant program for applicants of the Healthy Soils Program, Alternative Manure Management Program, and State Water Efficiency and Enhancement Program.
SB 840 (Committee on Budget & Fiscal Review, Chapter 29, Statutes of 2018)
- Appropriates funds for program administration for California Climate Investments and fire prevention in State Responsibility Areas.
SB 856 (Committee on Budget & Fiscal Review, Chapter 30, Statutes of 2018)
- Appropriates over $1.4 billion from the GGRF for existing programs and creates three new California Climate Investments programs: the Regional Fire Health program administered by CNRA, the Transportation Technology and Fuels Program administered by CEC, and the Prescribed Burn Program administered by CAL FIRE.
SB 901 (Dodd, Chapter 626, Statutes of 2018)
- Requires CARB, in consultation with CAL FIRE, to develop a standardized approach to quantifying the emissions benefits of GGRF-supported forest management projects.
- Authorizes two GGRF appropriations, for $165 million and $35 million, which shall be made to CAL FIRE in each Budget Act through FY 2023–24. Separate purposes for each appropriation are identified relating to forest health, fire prevention, and fuels reduction.
SB 1013 (Lara, Chapter 375, Statutes of 2018)
- Authorizes the establishment of the Fluorinated Gases Emission Reduction Incentive Program, to be administered by CARB. The program promotes the adoption of new refrigerant technologies to achieve short- and long-term climate benefits, energy efficiency, and other benefits.
SB 1072 (Leyva, Chapter 377, Statutes of 2018)
- Establishes the Regional Climate Collaborative Program to assist under-resourced communities in accessing statewide public and other grant money for climate change mitigation and adaptation projects.
- Requires SGC to administer the program and to develop technical assistance guidelines, in consultation with relevant State entities, that a State agency would use in delivering technical assistance or developing additional technical assistance resources.
Statutes of 2017
AB 97 (Ting, Chapter 14, Statutes of 2017)
- Appropriates funds for program administration.
AB 109 (Ting, Chapter 249, Statutes of 2017)
- Appropriates over $600 million from the GGRF to multiple agencies for investments in a variety of programs and project types.
AB 134 (Committee on Budget, Chapter 254, Statutes of 2017)
- Appropriates $900 million from the GGRF for investments in low carbon transportation, agricultural equipment, and air quality improvements in California’s most polluted communities.
AB 398 (E. Garcia, Chapter 135, Statutes of 2017)
- Defined the role of the State’s Cap-and-Trade Program through December 31, 2030.
- Identifies legislative priorities for allocating auction revenue proceeds, to include but not be limited to:
- Air toxic and criteria air pollutants from stationary and mobile sources;
- Low- and zero-carbon transportation alternatives;
- Sustainable agricultural practices that promote transition to clean technology, water efficiency, and improved air quality;
- Healthy forests and urban greening;
- Short-lived climate pollutants;
- Climate adaptation and resiliency; and
- Climate and clean energy research.
AB 617 (C. Garcia, Chapter 136, Statutes of 2017)
- Requires CARB to develop a statewide strategy to reduce criteria pollutants and toxic air contaminants in communities with high pollution exposure burdens through approved community emissions reduction programs developed by local air districts, in partnership with residents in the affected communities. AB 134 appropriated $255 million from the GGRF to CARB to support early action in the deployment of cleaner technologies in these communities.
- Requires CARB to establish a uniform system of annual reporting of criteria pollutants and toxic air contaminants for the existing statewide air monitoring network and expedites implementation of best available retrofit control technology in non-attainment areas.
More information on the community assistance funding.
SB 563 (Lara, Chapter 671, Statutes of 2017)
- Codifies the Woodsmoke Reduction Program to be administered by CARB, in coordination with air districts, to promote the voluntary replacement of old wood-burning stoves with cleaner and more efficient alternatives. Authorizes funds from the GGRF to be allocated for incentives offered as part of the program.
Statutes of 2016
AB 1550 (Gomez, Chapter 369, Statutes of 2016)
- Amends the existing SB 535 disadvantaged community investment minimums to require new investment minimums for low-income communities and low-income households:
- A minimum of 25 percent of the proceeds be invested in projects that are located within and benefiting individuals living in disadvantaged communities;
- An additional minimum of 5 percent be invested in projects that are located within and benefiting individuals living in low-income communities or benefiting low-income households statewide; and
- An additional minimum of 5 percent that are located within and benefiting individuals living in low-income communities, or benefiting low-income households, that are within a 1/2 mile of a disadvantaged community.
- Defines low-income communities and low-income households for the purpose of California Climate Investments.
More information on priority population funding.
AB 1613 (Committee on Budget, Chapter 370, Statutes of 2016)
- Amends the Budget Act of 2016 to appropriate over $1 billion from the GGRF to administering agencies to invest in programs and projects.
AB 2722 (Burke, Chapter 371, Statutes of 2016)
- Establishes the Transformative Climate Communities (TCC) Program, administered by SGC to fund the implementation of neighborhood-level transformative climate projects that provide local economic, environmental, and health benefits to disadvantaged communities.
SB 32 (Pavley, Chapter 249, Statutes of 2016)
- Requires California to achieve a 40 percent emission reduction below 1990 levels by 2030
SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2016)
- Provides administrative direction for existing programs and new programs funded with appropriations in AB 1613.
SB 1464 (De León, Chapter 679, Statutes of 2016)
- Requires that the Investment Plan:
- Assess how proposed investments interact with current State regulation, policies, and programs;
- Evaluate how proposed investments could be incorporated into existing programs; and
- Recommend metrics that would measure progress and benefits from the proposed investments.
Statutes of 2015
AB 91 (Committee on Budget, Chapter 1, Statutes of 2015)
- Amends the Budget Act of 2014 to appropriate funds for investments in clean energy, energy efficiency, and waste diversion.
AB 93 (Weber, Chapter 10, Statutes of 2015)
- Appropriates over $200 million from the GGRF for low carbon transportation and energy efficiency programs, not inclusive of the continuously appropriated funds.
SB 97 (Committee on Budget and Fiscal Review, Chapter 11, Statutes of 2015)
- Amends AB 93 to repeal some expenditures for agencies that administer continuously appropriated funds.
SB 101 (Committee on Budget and Fiscal Review, Chapter 321, Statutes of 2015)
- Appropriates over $200 million from the GGRF for low carbon transportation, energy efficiency, and waste diversion projects, not inclusive of the continuously appropriated funds.
Statutes of 2014
SB 103 (Committee on Budget and Fiscal Review, Chapter 2, Statutes of 2014)
- Amends the Budget Act of 2013 to appropriate approximately $40 million for investments in water and energy efficiency.
SB 852 (Leno, Chapter 25, Statutes of 2014)
- Appropriates over $800 million from the GGRF to multiple agencies for investments in a variety of programs and project types.
SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014)
- Requires CARB to develop guidance on investments for disadvantaged communities, Expenditure Record preparation, reporting, tracking and quantification approaches, and other guidance to be used by all agencies that receive appropriations from the GGRF.
- Establishes continuous appropriations totaling 60 percent of the GGRF monies beginning in FY 2015-16 to the following agencies and programs:
- 25 percent to the High-Speed Rail Project administered by the CHSRA;
- 20 percent to the AHSC Program administered by the OPR, SGC, and its member agencies; and
- 10 percent to TIRCP administered by the CalSTA;
- 5 percent to LCTOP administered by Caltrans.
SB 1204 (Lara, Chapter 524, Statutes of 2014)
- Establishes the California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program to be administered by CARB and funded with the GGRF.
Statutes of 2013
AB 110 (Committee on Budget, Chapter 20, Statutes of 2013)
- Appropriated funds for program administration and a loan to the general fund as authorized by AB 1464.
Statutes of 2012
AB 1464 (Blumenfield, Chapter 21, Statutes of 2012)
- Authorizes a loan from the GGRF to the General Fund, without an appropriation.
AB 1532 (Pérez, Chapter 807, Statutes of 2012)
- Requires that Cap-and-Trade auction proceeds be used to facilitate the achievement of GHG emission reductions:
- Maximize economic, environmental, and public health benefits to the State;
- Foster job creation by promoting in-State GHG emissions reduction projects carried out by California workers and businesses;
- Complement efforts to improve air quality;
- Direct investment toward the most disadvantaged communities and households in the State;
- Provide opportunities for businesses, public agencies, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce GHG emissions; and
- Lessen the impacts and effects of climate change on the State’s communities, economy, and environment.
- Requires the Department of Finance, in consultation with CARB and agencies administering programs funded with Cap-and-Trade auction proceeds, to submit a three-year Investment Plan to identify opportunities for GHG emission reductions, and identify potential State investment priorities to help achieve GHG emission reduction goals, benefit disadvantaged communities and low-income communities, and provide co-benefits.
- Requires the Department of Finance to submit an Annual Report to the Legislature each March on the status and outcomes of projects funded from the GGRF.
SB 535 (De León, Chapter 830, Statutes of 2012)
- Requires the California Environmental Protection Agency to identify disadvantaged communities for the purpose of California Climate Investments.
- Requires CARB to provide guidance on maximizing benefits to the identified disadvantaged communities.
- Requires that a minimum of 25 percent of the total investments provide benefit to disadvantaged communities; of that, a minimum of 10 percent are required to be located within disadvantaged communities.
- AB 1550 (Gomez, Chapter 369, Statutes of 2016) amends these requirements.
SB 1018 (Committee on Budget and Fiscal Review, Chapter 39, Statutes of 2012)
- Establishes the GGRF as the account to receive Cap-and-Trade auction proceeds.
- Requires State agencies that receive appropriations from the GGRF to prepare an Expenditure Record to describe how the appropriated funds will reduce GHG emissions and further the purposes of AB 32.