Division 6 - Climate Resilience Districts

California Government Code — §§ 62300-62313

Sections (15)

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

This division shall be known, and may be cited, as the Climate Resilience Districts Act.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

It is the intent of the Legislature in enacting this division to provide the ability for local governments to create districts for the purpose of addressing climate change effects and impacts through activities and actions that include mitigation and adaptation, as necessary and appropriate, to achieve all of the following:

(a)Providing a sustained and certain level and source of funding at the local level.
(b)Allowing activities and actions on an appropriate geographic basis.
(c)Facilitating the receipt and use of federal, state, local, and private funds.

Amended by Stats. 2024, Ch. 599, Sec. 10. (SB 1140) Effective January 1, 2025.

For purposes of this division:

(a)“District” means a climate resilience district formed pursuant to this division.
(b)(1) “Eligible project” means a project, including a capital project, that is designed and implemented to address climate change mitigation, adaptation, or resilience, including, but not limited to, all of the following:

(A) A project that addresses river, bay, or sea level rise, or rising groundwater, including wetlands or marsh restoration, vegetated dunes, living shorelines, erosion control, or levees.

(B) A project that addresses extreme heat or the

urban heat island effect, including increasing shade, deploying cool building and surface materials, using cool pavements; constructing, improving, or modifying new or existing facilities; or increasing access to cooling opportunities.

(C) A project that addresses extreme cold, rain, or snow, including constructing, improving, or modifying new or existing facilities.

(D) A project that addresses the risk of wildfire, including establishing fire breaks, prescribed burning, structure hardening, or vegetation control.

(E) A project that addresses drought, including multiuse land repurposing, groundwater replenishment, groundwater storage, or conjunctive use.

(F) A project that addresses the risk of flooding, including structure elevation or relocation,

wetlands restoration, flood easements or bypasses, or levees.

(G) A project that intends to improve air quality.

(2)At a minimum, a district shall give priority to a project that does either of the following:
(A)Utilizes natural infrastructure, as defined in paragraph (3) of subdivision (c) of Section 71154 of the Public Resources Code, to address climate change adaptation or resilience based upon the best available science.
(B)Addresses the needs of under-resourced communities, as defined in subdivision (g) of Section 71130 of the Public Resources Code, or vulnerable communities, as defined in subdivision (d) of Section 71340 of the Public Resources Code.
(3)A district may adopt

additional priorities for projects.

(4)A district shall seek the input of the communities specified in subparagraph (B) of paragraph (2) in the planning, development, and implementation of projects.
(c)“Participating entity” means a city, county, or special district that meets both of the following:
(1)The city, county, or special district is an affected taxing entity within the climate resilience district.
(2)The city, county, or special district adopts a resolution pursuant to subdivision (b) of Section 62304 that is applicable to its territory located within the climate resilience district.
(d)“Participating member city or county” means a city or county that does not adopt a

resolution to be a participating entity, as described in subdivision (c), and alternatively adopts a resolution at a noticed public hearing stating that it agrees to participate in, and have its territory subject to, the jurisdiction, powers, and authority of the district conditioned upon the city or county also being represented on the governing body of the district pursuant to Section 62305.

(e)(1) “Property tax increment” means that portion of the ad valorem taxes, as defined under subdivision (a) of Section 1 of Article XIII A of the California Constitution, excluding any ad valorem taxes or assessments levied pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution, divided pursuant to Section 53398.75.
(2)Except as otherwise specified in this division, a district formed

pursuant to this division is hereby deemed to also be an enhanced infrastructure financing district pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 and shall be subject to statutory provisions for enhanced infrastructure financing districts.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)(1) A city, county, city and county, or a combination of any of those entities may form a climate resilience district pursuant to this division.
(2)The boundaries of the district shall be one of the following:
(A)Coterminous with the city, county, or city and county forming the district.
(B)Within a city, county, or city and county forming the district.
(C)Across two or more cities, counties, or cities and counties that are forming the district.
(D)A special

district may join a district initiated by a city, county, city and county, or a combination of cities and counties.

(b)(1) A district shall be formed for the purpose of raising and allocating funding for eligible projects and the operating expenses of eligible projects.
(2)Operating expenses may include any of the following:
(A)The expenses of operating the district.
(B)The planning of eligible projects.
(C)The operational expenses of any eligible project.
(3)A district shall finance only projects described in subdivision (b) of Section 53398.52 if the project meets the definition of an eligible

project.

(4)A district shall use the proceeds of bonds issued by a district to finance only eligible projects that meet the requirements of subdivision (a) of Section 53398.52.
(c)A district shall be deemed to be an “agency” described in subdivision (b) of Section 16 of Article XVI of the California Constitution only for purposes of receiving property tax increment revenues.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)Notwithstanding the procedures for establishing a district under this division, the authority shall be deemed a climate resilience district and is hereby granted all of the powers described in Section 62307, except as provided in subdivision (c).
(b)Notwithstanding subdivision (a) of Section 62305, the legislative body of the district formed pursuant to this section shall be the legislative body of the authority.
(c)This section shall not grant the district the power to use any tax increment revenues unless it complies with the requirements for receiving and using tax increment revenue pursuant to subdivision (b) of Section 62304.
(d)For purposes of this section, “authority” means the Sonoma County Regional Climate Protection Authority created pursuant to Division 19.1 (commencing with Section 181000) of the Public Utilities Code.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:
(1)State that a district is proposed to be established pursuant to this division and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable.
(2)State the type of eligible projects proposed to be financed or assisted by the district.
(3)State the need for the district and the goals

the district proposes to achieve.

(b)The city, county, or city and county, shall enact a resolution providing for the division of taxes of any participating entity pursuant to the procedures for the preparation and adoption of an infrastructure financing plan described in Sections 53398.59 to 53398.74, inclusive. A district that completes these procedures shall follow the procedures for the division of taxes and issuance of tax increment bonds described in Sections 53398.75 to 53398.88, inclusive.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)A district shall be governed by a board that has the same membership as a public financing authority as described in Section 53398.51.1. The board shall have the same powers and requirements as a public financing authority, unless otherwise specified.
(b)The legislative body shall ensure the district board is established at the same time that it adopts a resolution of intention pursuant to Section 62304.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)A minimum of 95 percent of the allocated tax increment revenues pursuant to subdivision (b) of Section 62304 shall be used to fund eligible projects.
(b)Not more than 5 percent of allocated revenues may be used for administration.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

In addition to the powers granted to an enhanced infrastructure financing district pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5, a district has the power to do all of the following within the territorial jurisdiction of a city, county, or city and county that is a participating entity, or a participating member city or county, pursuant to this division and is represented on the governing board in accordance with Section 62305:

(a)(1) Levy a benefit assessment, special tax levied pursuant to Article 3.5 (commencing with Section 50075) of Chapter 1 of Part 1 of Division 1 of Title 5, or property-related fee or other service charge or fee consistent with the requirements of Articles XIII A, XIII

C, and XIII   D of the California Constitution, including, but not limited to, a benefit assessment levied pursuant to paragraph (2).

(2)The district may levy a benefit assessment for any of the purposes authorized by this division pursuant to any of the following:
(A)The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(B)The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(C)The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(D)The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section

22500) of Division 15 of the Streets and Highways Code), notwithstanding Section 22501 of the Streets and Highways Code.

(E)Any other statutory authorization.
(b)Apply for and receive grants from federal and state agencies.
(c)Solicit and accept gifts, fees, grants, and allocations from public and private entities.
(d)Issue revenue bonds for any of the purposes authorized by this division pursuant to the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5), subject to any applicable constitutional requirements.
(e)Incur general obligation bonded indebtedness for the acquisition or improvement of real property or for funding or

refunding of any outstanding indebtedness, subject to any applicable constitutional requirements.

(f)Receive and manage a dedicated revenue source.
(g)Deposit or invest moneys of the district in banks or financial institutions in the state in accordance with state law.
(h)Sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction.
(i)Engage counsel and other professional services.
(j)Enter into and perform all necessary contracts.
(k)Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with

Section 6500) of Division 7 of Title 1).

(l)Hire staff, define their qualifications and duties, and provide a schedule of compensation for the performance of their duties.
(m)Use interim or temporary staff provided by local agencies that are a members of the district. A person who performs duties as interim or temporary staff shall not be considered an employee of the district.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)If a district proposes a measure that will generate revenues for the district that requires voter approval pursuant to the California Constitution, the board of supervisors of the county or counties in which the district has determined to place the measure on the ballot shall call a special election on the measure. The special election shall be consolidated with the next regularly scheduled statewide election and the measure shall be submitted to the voters in the appropriate counties, consistent with the requirements of Articles XIII A, XIII C, and XIII D, or Article XVI of, the California Constitution, as applicable.
(b)A district shall be deemed a district for purposes of Section 317 of the Elections Code. A measure proposed by a

district that requires voter approval shall be submitted to the voters within the boundaries of the district in accordance with the provisions of the Elections Code applicable to districts, including the provisions of Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code.

(c)The district shall file with the board of supervisors of each county in which the measure shall appear on the ballot a resolution of the district requesting consolidation, and setting forth the exact form of the ballot question, in accordance with Section 10403 of the Elections Code.
(d)The legal counsel for the district shall prepare an impartial analysis of the measure. The impartial analysis prepared by the legal counsel for the district shall be subject to review and revision by the county counsel of the county that contains the largest population, as determined by the most recent

federal decennial census, among those counties in which the measure will be submitted to the voters.

(e)Each county included in the measure shall use the exact ballot question, impartial analysis, and ballot language provided by the district. If two or more counties included in the measure are required to prepare a translation of ballot materials into the same language other than English, the county that contains the largest population, as determined by the most recent federal decennial census, among those counties that are required to prepare a translation of ballot materials into the same language other than English shall prepare the translation and that translation shall be used by the other county or counties, as applicable.
(f)Notwithstanding Section 13116 of the Elections Code, if a measure proposed by a district pursuant to this division is submitted to the voters of the

district in two or more counties, the elections officials of those counties shall mutually agree to use the same letter designation for the measure.

(g)The county clerk of each county shall report the results of the special election to the authority. If two-thirds of all voters voting on the question at the special election vote affirmatively, or a different approval threshold required by the California Constitution at the time the election is achieved, the measure shall take effect in the counties in which the measure appeared on the ballot within the timeframe specified in the measure.
(h)The county clerk of each county shall report the results of the special election to the district.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)Each district shall prepare an annual expenditure plan that identifies and describes the operations and eligible projects undertaken by the district. The expenditure plan shall be, after public review and hearing, adopted by the governing body of the district and subject to review and revision at least annually.
(b)Each district shall also prepare and adopt an annual operating budget and capital improvement budget. The annual operating budget and capital improvement budget shall be, after public review and hearing, adopted by the governing body of the district and subject to review and revision at least annually.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)A district shall provide for regular audits of its accounts and records, maintain accounting records, and report accounting transactions in accordance with generally accepted accounting principles adopted by the Governmental Accounting Standards Board of the Financial Accounting Foundation for both public reporting purposes and for reporting of activities to the Controller.
(b)A district shall provide for annual financial reports and make copies of the annual financial reports available to the public.
(c)Commencing in the calendar year in which a district has allocated a cumulative total of more than one million dollars ($1,000,000) in property tax increment revenues under

this division or other revenues pursuant to subdivision (b) of Section 62253, including any proceeds of a debt issuance, and each year thereafter, the district shall contract for an independent audit conducted in accordance with generally accepted governmental auditing standards.

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)All meetings of the district shall be subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5).
(b)All records prepared, owned, used, or retained by the district are public records for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1).

Added by Stats. 2022, Ch. 266, Sec. 1. (SB 852) Effective January 1, 2023.

(a)The following requirements shall apply to a project that is undertaken or financed by a district:
(1)Construction, alteration, demolition, installation, and repair work on the project shall be deemed a public work for which prevailing wages must be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(2)The district shall obtain an enforceable commitment from the developer or general contractor that the developer or general contractor and all its contractors and subcontractors at every tier will individually use a skilled and trained workforce, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of

Division 2 of the Public Contract Code, to perform all work on the project that falls within an apprenticeable occupation in the building and construction trades.

(3)Paragraph (2) shall not apply if all contractors and subcontractors at every tier performing the work will be bound by a project labor agreement that requires the use of a skilled and trained workforce and provides for enforcement of that obligation through an arbitration procedure.
(b)For purposes of this section:
(1)“Project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(2)“Skilled and trained workforce” has the same meaning as set forth in subdivision (d) of Section 2601 of the Public Contract

Code.

Added by Stats. 2025, Ch. 552, Sec. 1. (SB 782) Effective October 10, 2025.

(a)Notwithstanding subdivision (b) of Section 62304, a city or county may adopt a resolution providing for the division of taxes of any participating entity without following the procedures for the preparation and adoption of an infrastructure financing plan described in Sections 53398.59 to 53398.66, inclusive, if all of the following are met:
(1)(A) The boundaries of the proposed district are limited to an area in which the disaster damage has caused conditions that are so prevalent and so substantial that they have caused a reduction, or a lack, of the normal predisaster usage of the area to an extent that causes a serious physical and economic

burden that cannot reasonably be expected to be reversed or alleviated during the term of the infrastructure financing plan by private enterprise or governmental action, or both, without redevelopment.

(B)Areas adjacent to the disaster area may be included within the boundaries of the proposed district, but those adjacent areas shall be no more than 20 percent of the total district area.
(C)The city or county adopts the resolution no more than two years after the proclamation of the disaster.
(2)The resolution does all of the following:
(A)State that a district is proposed to be established under the terms of this division and describe the boundaries of the proposed

district, which may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable. The map may identify, within a district, certain areas which shall be referred to as “project areas.”

(B)State the type of public facilities and development proposed to be financed or assisted by the district in accordance with subdivision (f).
(C)State the need for the district and the goals the district proposes to achieve.
(D)State that incremental property tax revenue from the city or county and all affected taxing entities within the district, if approved by resolution pursuant to Section 53398.68, may be used to finance these activities.
(E)(i) State that a city, county, or city and county may allocate tax revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) to a district pursuant to Section 53398.75.5, if applicable.

(ii) The legislative body of the city or county that elects to make an allocation pursuant to clause (i) shall enact an ordinance to establish the following:

(I)The procedure by which

the city or county will calculate the revenues derived from sales and use taxes and transactions and use taxes to be allocated to the district.

(II) The decision process by which the city or county will determine the amount that will be dedicated to the proposed district.

(F)Fix a time and place for the public meeting on the proposal.
(b)(1) The city or county entity proposing formation of the district shall hold a public meeting to consider the resolution of intention to establish the district.
(2)The governing board of the district shall hold a public meeting to consider the adoption of the infrastructure financing plan.
(c)(1) The city or county entity proposing formation of the district shall post notice of the meeting described in paragraph (1) of subdivision (b) in an easily identifiable and accessible location on the local agency’s internet website at least 10 days before the meeting. The notice shall do all of the following:

(A) Describe specifically the boundaries of the proposed area.

(B) Describe the purpose of the infrastructure financing plan.

(C) State the day, hour, and place when and where the public can inspect documents related to the district.

(2)The governing board of the

district shall post notice of the meeting described in paragraph (2) of subdivision (b) in an easily identifiable and accessible location on the district’s internet website at least 10 days before the meeting. The notice shall do all of the following:

(A)Describe specifically the boundaries of the proposed area.
(B)Describe the purpose of the infrastructure financing plan.
(C)State the day, hour, and place when and where the public can inspect documents related to the district.
(d)After adopting the resolution of intention to establish a district, the city or county shall designate an official to prepare a proposed infrastructure financing plan. This plan shall include

all of the information required in Section 53398.63. The infrastructure financing plan shall be made available for public inspection at least 30 days before the governing board of the district’s public meeting. The designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.

(e)The district shall follow the procedures for amending the infrastructure financing plan and providing an annual report described in subdivision (j) of Section 53398.66, except that it shall not be required to mail any written notices.
(f)A district established pursuant to this section shall limit the use of its revenue to

only the following:

(1)The purpose of acquiring, demolishing, removing, relocating, repairing, restoring, rehabilitating, or replacing buildings, low- and moderate-income housing, facilities, structures, or other improvements, in accordance with applicable laws, which are within the district, and which have been damaged or destroyed by the disaster, which are unsafe to occupy, or which are required to be acquired, demolished, altered, or removed because of the disaster.
(2)The purpose of mitigating the risk of a future disaster, including, but not limited to, both of the following:
(A)Water and energy resource access and availability during emergencies and natural disasters.
(B)Undergrounding and hardening of electrical lines and other utilities.
(3)The purpose of supporting economic recovery from a disaster, including, but not limited to, all of the following:
(A)Residential and commercial reconstruction.
(B)Affordable housing development pursuant to the provisions of Section 53398.52.
(C)Prevention of displacement.
(D)Low-interest construction loans.
(E)Capital access programs for small businesses.
(F)Workforce development and job training

programs.

(g)Except as specifically provided in this section, a district established pursuant to this section shall comply with the provisions of

this division.

(h)Notwithstanding Section 53398.63, a district established pursuant to this section may plan, adopt, and implement an infrastructure financing plan, and the legislative body of the city or county that created it may approve projects in the disaster area even if it is inconsistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located.
(i)For a district established pursuant to this section, both of the following shall apply:
(1)Bond proceeds shall not be used for costs of operations, programs, or providing services of any kind.
(2)Notwithstanding Section 54902,

the statement required by Section 54900 may be filed with the auditor of each levying county, and the statement and the map or plat shall be filed with each assessor whose roll is used for the levy and with the State Board of Equalization in Sacramento, no later than January 31 of the year in which the assessments or taxes are to be levied.

(j)Prior to the termination of the district, a city or county may include all or a portion of the district within a separate district. However, any portion of the district included within the separate district shall meet all the requirements of this division.
(k)The public members appointed in compliance with Section 62305 to the governing board of a district established pursuant to this

section shall be residents of, own property in, or represent a business within the boundaries of the district and shall serve terms of not fewer than four years, subject to any applicable term limits established by the legislative body.

(l)For the purposes of this section, “disaster” means a disaster for which the Governor has declared a state of emergency pursuant to Section 8625 of the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2).