Governor Gavin Newsom Allocates Record $12.5 Billion for Climate Change Resiliency Efforts in Propos
Governor Gavin Newsom released his 2020-21 proposed budget, which includes a collaborative, interagency investment approach to address the causes and effects of climate change, and to promote resilience. Altogether, the California Climate Budget totals $12.4 billion over five years, and aligns the Greenhouse Gas Reduction Fund, a new climate resilience bond, several one-time General Fund appropriations, and a new Climate Catalyst Revolving Loan Fund.
The Governor’s budget proposal is based on an integrated, collaborative model that targets funds based on risk with a focus on supporting equity and community resilience. This funding strategy will harness the statutory role of the California Strategic Growth Council (SGC) as a coordinating body and leverages the unique expertise and networks we have developed over the course of designing, implementing, and administering a suite of investment, capacity building and technical assistance, and integrated policy programs – all built on deep collaboration.
Climate Catalyst Fund
For example, the Governor included a proposal to launch a four-year $1 billion Climate Catalyst Revolving Loan Fund to support innovative approaches to priorities such as recycling, low-carbon transportation, and climate-smart agriculture by small businesses and organizations that may not be well-established enough to access other funding sources. SGC will provide overarching guidance to identify investment categories for the Climate Catalyst Fund – using our expertise in identifying knowledge and research gaps to help surface areas for investment opportunity.
Cap-and-Trade Funded Programs
In addition, the budget proposal includes continued cap-and-trade funding for a number of SGC’s California Climate Investments programs: Affordable Housing and Sustainable Communities, Sustainable Agricultural Lands Conservation, Climate Change Research, and Technical Assistance. In addition, the Governor proposes $35 million in funding over five years for SGC’s new Regional Climate Collaboratives Program, created by Senate Bill 1072 (Leyva).
We are continuing to work to identify funding for a fourth round of funding for SGC’s Transformative Climate Communities Program. While the proposed budget does not contain funding for a fourth round, TCC funding is in place for Round 3, for which SGC is currently accepting applications for both Implementation and Planning Grants. SGC continues to work with TCC Round 1 & 2 Implementation grant recipients to support their exciting and ongoing progress, as well as with TCC Planning Grant recipients to support their efforts to seek dollars to implement their communities' visions.
Finally, the Governor has proposed a $4.75 billion resilience bond to support investments that reduce specific climate risks across California through long-term investment in natural and built infrastructure, especially in the most climate-vulnerable communities. This bond proposal is the result of a deep collaboration among the Governor's office, the Office of Planning and Research, and the secretaries of most of the State agencies that comprise the California Strategic Growth Council.
If you have questions about the Governor’s Climate Budget, please contact us.