Amended by Stats. 2013, Ch. 76, Sec. 117. (AB 383) Effective January 1, 2014.
For purposes of this chapter, “fund” means the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.
Chapter 4.1 - Greenhouse Gas Reduction Fund Investment Plan and Communities Revitalization Act
California Health and Safety Code — §§ 39710-39723
Sections (16)
Amended by Stats. 2014, Ch. 36, Sec. 5. (SB 862) Effective June 20, 2014.
(a)The California Environmental Protection Agency shall identify disadvantaged communities for investment opportunities related to this chapter. These communities shall be identified based on geographic, socioeconomic, public health, and environmental hazard criteria, and may include, but are not limited to, either of the following:
(1)Areas disproportionately affected by environmental pollution and other hazards that can lead to negative public health effects, exposure, or environmental degradation.
(2)Areas with concentrations of people that are of low income, high unemployment, low levels of homeownership, high rent burden, sensitive populations, or low
levels of educational attainment.
(b)The California Environmental Protection Agency shall hold at least one public workshop prior to the identification of disadvantaged communities pursuant to this section.
(c)Chapter 3.5 (commencing with Section 11340) of the Part 1 of Division 3 of Title 2 of the Government Code does not apply to the identification of disadvantaged communities pursuant to this section.
Amended by Stats. 2021, Ch. 748, Sec. 5. (AB 794) Effective January 1, 2022.
(a)(1) It is the intent of the Legislature that moneys shall be appropriated from the fund only in a manner consistent with the requirements of this chapter and Article 9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
(2)The state shall not approve allocations for a measure or program using moneys appropriated from the fund except after determining, based on the available evidence, that the use of those moneys furthers the regulatory purposes of Division 25.5 (commencing with Section 38500) and is consistent with law. If any expenditure of moneys from the fund for any measure or project is determined by a court to be inconsistent with law, the allocations for the remaining measures
or projects shall be severable and shall not be affected.
(3)An eligible expenditure of moneys appropriated to the Department of Community Services and Development may occur over multiple fiscal years and the department may make multiyear funding commitments over a period of more than one fiscal year.
(b)Moneys shall be used to facilitate the achievement of reductions of greenhouse gas emissions in this state consistent with Division 25.5 (commencing with Section 38500) and, where applicable and to the extent feasible:
(1)Maximize economic, environmental, and public health benefits to the state.
(2)Foster job creation by promoting in-state greenhouse gas emissions reduction projects carried out by California workers and businesses.
(3)Complement efforts to improve air quality.
(4)Direct investment toward the most disadvantaged communities and households in the state.
(5)Provide opportunities for businesses, public agencies, Native American tribes in the state, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce greenhouse gas emissions.
(6)Lessen the impacts and effects of climate change on the state’s communities, economy, and environment.
(c)Moneys appropriated from the fund may be allocated, consistent with subdivision (a), for the purpose of reducing greenhouse gas emissions in this state through investments that may include, but are not limited to, any of
the following:
(1)Funding to reduce greenhouse gas emissions through energy efficiency, clean and renewable energy generation, distributed renewable energy generation, transmission and storage, and other related actions, including, but not limited to, at public universities, state and local public buildings, and industrial and manufacturing facilities.
(2)Funding to reduce greenhouse gas emissions through the development of state‑of‑the‑art systems to move goods and freight, advanced technology vehicles and vehicle infrastructure, advanced biofuels, and low‑carbon and efficient public transportation.
(3)Funding to reduce greenhouse gas emissions associated with water use and supply, land and natural resource conservation and management, forestry, and sustainable agriculture.
(4)Funding to reduce greenhouse gas emissions through strategic planning and development of sustainable infrastructure projects, including, but not limited to, transportation and housing.
(5)Funding to reduce greenhouse gas emissions through increased in-state diversion of municipal solid waste from disposal through waste reduction, diversion, and reuse.
(6)Funding to reduce greenhouse gas emissions through investments in programs implemented by local and regional agencies, local and regional collaboratives, Native American tribes in the state, and nonprofit organizations coordinating with local governments.
(7)Funding research, development, and deployment of innovative technologies, measures, and practices related to programs and projects funded
pursuant to this chapter.
(d)Moneys directed to grant, loan, voucher, or other incentive programs shall be conditioned on the requirements of Chapter 3.6 (commencing with Section 39680), as applicable.
Added by Stats. 2025, Ch. 121, Sec. 3. (SB 840) Effective September 19, 2025.
It is the further intent of the Legislature to direct specific percentages of the revenues deposited into the fund to be distributed to individual funds dedicated to funding clean transportation, housing and community investment, clean air and water, wildfire prevention and resilience, agriculture, clean energy, and climate-focused innovation, with appropriations from each of those funds to be guided by fund-specific, multiyear spending plans.
Amended by Stats. 2017, Ch. 561, Sec. 121. (AB 1516) Effective January 1, 2018.
(a)The investment plan developed and submitted to the Legislature pursuant to Section 39716 shall allocate a minimum of 25 percent of the available moneys in the fund to projects located within the boundaries of, and benefiting individuals living in, communities described in Section 39711.
(b)The investment plan shall allocate a minimum of 5 percent of the available moneys in the fund to projects that benefit low-income households or to projects located within the boundaries of, and benefiting individuals living in, low-income communities located anywhere in the state.
(c)The investment plan shall allocate a minimum of 5 percent of the available moneys in the fund either to projects that benefit
low-income households that are outside of, but within one-half mile of, communities described in Section 39711, or to projects located within the boundaries of, and benefiting individuals living in, low-income communities that are outside of, but within one-half mile of, communities described in Section 39711.
(d)For purposes of this section, the following definitions shall apply:
(1)“Low-income households” are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093.
(2)“Low-income communities” are census tracts with median household incomes at or below 80 percent of the statewide median income
or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093.
(e)Moneys allocated pursuant to one subdivision of this section do not count toward the minimum requirements of any other subdivision of this section.
Amended by Stats. 2014, Ch. 36, Sec. 6. (SB 862) Effective June 20, 2014.
(a)The state board, in consultation with the California Environmental Protection Agency shall develop funding guidelines for administering agencies that receive appropriations from the fund to ensure the requirements of this chapter are met. The guidelines shall include a component for how administering agencies should maximize benefits for disadvantaged communities, as described in Section 39711.
(b)The state board shall provide an opportunity for public input prior to finalizing the guidelines.
(c)Chapter 3.5 (commencing with Section 11340) of the Part 1 of Division 3 of Title 2 of the Government Code does not apply to the guidelines developed pursuant to
this section.
Amended by Stats. 2024, Ch. 72, Sec. 30. (SB 156) Effective July 2, 2024.
(a)The Department of Finance, on behalf of the Governor, and in consultation with the state board and any other relevant state entity, shall develop and submit to the Legislature at the time of the department’s adjustments to the proposed 2013–14 fiscal year budget pursuant to subdivision (e) of Section 13308 of the Government Code a three-year investment plan. Commencing with the 2016–17 fiscal year budget and every three years thereafter, with the release of the Governor’s budget proposal, except for the 2025–26 fiscal year budget, the Department of Finance shall include updates to the investment plan following the public process described in subdivisions (b) and (c). The investment plan, consistent with the
requirements of Section 39712, shall do all of the following:
(1)Identify the state’s near-term and long-term greenhouse gas emissions reduction goals and targets by sector.
(2)Analyze gaps, where applicable, in current state strategies to meeting the state’s greenhouse gas emissions reduction goals and targets by sector.
(3)(A) Identify priority programmatic investments of moneys that will facilitate the achievement of feasible and cost-effective greenhouse gas emissions reductions toward achievement of greenhouse gas reduction goals and targets by sector, consistent with subdivision (c) of Section 39712.
(B)In identifying priority programmatic investments, the investment plan shall do both of the following:
(i)Assess how proposed investments interact with current state regulations, policies, and programs.
(ii) Evaluate if and how those proposed investments could be incorporated into existing programs.
(4)Recommend metrics that would measure progress and benefits from the proposed programmatic investments.
(b)(1) The state board shall hold at least two public workshops in different regions of the state and one public hearing prior to the Department of Finance submitting the investment plan.
(2)The state board shall, prior to the submission of each investment plan, consult with the Public Utilities Commission to ensure the investment plan is coordinated with, and does not
conflict with or unduly overlap with, activities under the oversight or administration of the Public Utilities Commission undertaken pursuant to Part 5 (commencing with Section 38570) of Division 25.5 or other activities under the oversight or administration of the Public Utilities Commission that facilitate greenhouse gas emissions reductions consistent with this division. The investment plan shall include a description of the use of any moneys generated by the sale of allowances received at no cost by the investor-owned utilities pursuant to a market-based compliance mechanism.
(c)The Climate Action Team, established under Executive Order S-3-05, shall provide information to the Department of Finance and the state board to assist in the development of each investment plan. The Climate Action Team shall participate in each public workshop held on an investment plan and provide testimony to the state board on each investment plan. For purposes
of this section, the Secretary of Labor and Workforce Development shall assist the Climate Action Team in its efforts.
Amended by Stats. 2013, Ch. 76, Sec. 120. (AB 383) Effective January 1, 2014.
(a)Moneys in the fund shall be appropriated through the annual Budget Act consistent with the investment plan developed and submitted pursuant to Section 39716.
(b)Upon appropriation, moneys in the fund shall be available to the state board and to administering agencies for administrative purposes in carrying out this chapter.
(c)Any repayment of loans, including interest payments and all interest earnings on or accruing to any moneys, resulting from implementation of this chapter shall be deposited in the fund for purposes of this chapter.
Amended by Stats. 2025, Ch. 121, Sec. 4. (SB 840) Effective September 19, 2025. Inoperative July 1, 2026, by its own provisions.
(a)The Legislature shall appropriate the annual proceeds of the fund for the purpose of reducing greenhouse gas emissions in this state in accordance with the requirements of Section 39712.
(b)To carry out a portion of the requirements of subdivision (a), the annual proceeds of the fund are continuously appropriated for the following:
(1)Beginning in the 2015–16 fiscal year, and notwithstanding Section 13340 of the Government Code, 35 percent of the annual proceeds of the fund are continuously appropriated, without regard to fiscal years, for transit, affordable housing, and sustainable communities programs as follows:
(A)Ten
percent of the annual proceeds of the fund is hereby continuously appropriated to the Transportation Agency for the Transit and Intercity Rail Capital Program created by Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code.
(B)Five percent of the annual proceeds of the fund is hereby continuously appropriated to the Low Carbon Transit Operations Program created by Part 3 (commencing with Section 75230) of Division 44 of the Public Resources Code. Moneys shall be allocated by the Controller, according to requirements of the program, and pursuant to the distribution formula in subdivision (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of, the Public Utilities Code.
(C)Twenty percent of the annual proceeds of the fund is hereby continuously appropriated to the Strategic Growth Council for the Affordable Housing and Sustainable Communities
Program created by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code. Of the amount appropriated in this subparagraph, no less than 10 percent of the annual proceeds of the fund shall be expended for affordable housing, consistent with the provisions of that program.
(2)Beginning in the 2015–16 fiscal year, notwithstanding Section 13340 of the Government Code, and subject to the requirements of Section 39719.3, 25 percent of the annual proceeds of the fund is hereby continuously appropriated to the High-Speed Rail Authority for the following components of the initial operating segment and Phase I Blended System as described in the 2012 business plan adopted pursuant to Section 185033 of the Public Utilities Code:
(A)Acquisition and construction costs of the project.
(B)Environmental review and design costs of the project.
(C)Other capital costs of the project.
(D)Repayment of any loans made to the authority to fund the project.
(3)(A) Beginning in the 2020–21 fiscal year, and until June 30, 2030, 5 percent of the annual proceeds of the fund, up to the sum of one hundred thirty million dollars ($130,000,000), is hereby annually transferred to the Safe and Affordable Drinking Water Fund established pursuant to Section 116766 for the purposes of Chapter 4.6 (commencing with Section 116765) of Part 12 of Division 104.
(B)Moneys transferred under this paragraph shall be used for the purpose of facilitating the achievement of reductions of greenhouse gas emissions in this state in
accordance with the requirements of Section 39712 or to improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities, consistent with Division 25.5 (commencing with Section 38500). For purposes of the moneys transferred under this paragraph, a state agency may also comply with the requirements of paragraphs (2) and (3) of subdivision (a) of Section 16428.9 of the Government Code by describing how each proposed expenditure will improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities.
(4)Notwithstanding Section 13340 of the Government Code, for each fiscal year, beginning in the 2022–23 fiscal year through the 2028-29 fiscal year, the sum of two hundred million dollars ($200,000,000) is hereby continuously appropriated, to the Department of Forestry and Fire Protection and allocated as follows:
(A)One hundred sixty-five million dollars ($165,000,000) for healthy forest and fire prevention programs and projects that improve forest health and reduce emissions of greenhouse gases caused by uncontrolled wildfires.
(B)Thirty-five million dollars ($35,000,000) for the completion of prescribed fire and other fuel reduction projects through proven forestry practices consistent with the recommendations of the California Forest Carbon Plan, including the operation of year-round prescribed fire crews and implementation of a research and monitoring program for climate adaptation.
(c)In determining the amount of the annual proceeds of the fund for purposes of the calculation in paragraphs (1) to (3), inclusive, of subdivision (b), the funds subject to Section 39719.1 and the sum set forth in paragraph (4) of subdivision
(b)shall not be included.
(d)This section shall become inoperative on July 1, 2026.
Added by Stats. 2014, Ch. 36, Sec. 8. (SB 862) Effective June 20, 2014.
(a)Of the amount loaned from the fund to the General Fund pursuant to Item 3900-011-3228 of Section 2.00 of the Budget Act of 2013, four hundred million dollars ($400,000,000) shall be available to the High-Speed Rail Authority pursuant to subdivision (b).
(b)The portion of the loan from the fund to the General Fund described in subdivision (a) shall be repaid to the fund as necessary based on the financial needs of the high-speed rail project. Beginning in the 2015–16 fiscal year, and in order to carry out the goals of the fund in accordance with the requirements of Section 39712, the amounts of all the loan repayments, notwithstanding Section 13340 of the Government Code, are continuously
appropriated from the fund to the High-Speed Rail Authority for the following components of the initial operating segment and Phase I Blended System as described in the 2012 business plan adopted pursuant to Section 185033 of the Public Utilities Code:
(1)Acquisition and construction costs of the project.
(2)Environmental review and design costs of the project.
(3)Other capital costs of the project.
(4)Repayment of any loans made to the authority to fund the project.
Amended by Stats. 2021, Ch. 624, Sec. 1. (AB 992) Effective January 1, 2022.
(a)The California Clean Truck, Bus, and Off-Road Vehicle and Equipment Technology Program is hereby created, to be administered by the state board in conjunction with the State Energy Resources Conservation and Development Commission. The program, from moneys appropriated from the fund for the purposes of the program, shall fund development, demonstration, precommercial pilot, and early commercial deployment of zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies. Priority shall be given to projects benefiting disadvantaged communities pursuant to the requirements of Sections 39711 and 39713.
(b)Projects eligible for funding pursuant to this section include, but are not limited to, the following:
(1)Technology development, demonstration, precommercial pilots, and early commercial deployments of zero- and near-zero-emission medium- and heavy-duty truck technology, including projects that help to facilitate clean goods movement corridors. This includes peer-to-peer truck sharing platform demonstration. Until December 31, 2021, no less than 20 percent of funding made available for purposes of this paragraph shall support early commercial deployment of existing zero- and near-zero-emission heavy-duty truck technology.
(2)Zero- and near-zero-emission bus technology development, demonstration, precommercial pilots, and early commercial deployments, including pilots of multiple vehicles at one site or region.
(3)Zero- and near-zero-emission off-road vehicle and equipment technology development, demonstration, precommercial pilots, and early commercial deployments, including vehicles and equipment in the port, agricultural, marine, construction, and rail sectors.
(4)Purchase incentives, which may include point-of-sale, for commercially available zero- and near-zero-emission truck, bus, and off-road vehicle and equipment technologies and fueling infrastructure to support early market deployments of alternative technologies and to increase manufacturer volumes and accelerate market acceptance.
(5)Projects that support greater commercial motor vehicle and equipment freight efficiency and greenhouse gas emissions reductions, including, but not limited to, advanced intelligent transportation systems, autonomous vehicles, grid integration and integrated storage solutions,
charging management demonstration and analytics, and other freight information and operations technologies.
(c)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall develop guidance through the existing Air Quality Improvement Program funding plan process for the implementation of this section that is consistent with the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)) and this chapter.
(d)The guidance developed pursuant to subdivision (c) shall do all of the following:
(1)Outline performance criteria and metrics for deployment incentives. The goal shall be to design a simple and predictable structure that provides incentives for truck, bus, and off-road vehicle and equipment technologies that provide
significant greenhouse gas reduction and air quality benefits.
(2)(A) Ensure that program investments are coordinated with funding programs developed pursuant to the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (Chapter 8.9 (commencing with Section 44270) of Part 5).
(B)The State Energy Resources Conservation and Development Commission shall advise the state board on how to allocate money for vehicle charging infrastructure consistent with the commission’s investment plan strategies on charging infrastructure.
(3)Promote projects that assist the state in reaching its climate goals beyond 2030, consistent with Section 38566.
(4)Promote investments in medium- and
heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, marine equipment, and rail equipment.
(5)Implement purchase incentives for eligible technologies to increase the use of the cleanest vehicles in disadvantaged communities.
(6)Allow for remanufactured and retrofitted vehicles to qualify for purchase incentives if those vehicles meet warranty and emissions requirements, as determined by the state board.
(7)Establish a competitive process for the allocation of moneys for projects funded pursuant to this section.
(8)Leverage, to the maximum extent feasible, federal or private funding.
(9)Ensure that the results of emissions reductions or benefits can be measured or quantified.
(10)Ensure that activities undertaken pursuant to this section complement, and do not interfere with, efforts to achieve and maintain federal and state ambient air quality standards and to reduce toxic air contaminants.
(e)In evaluating potential projects to be funded pursuant to this section, the state board shall give priority to projects that demonstrate one or more of the following characteristics:
(1)Benefit disadvantaged communities pursuant to Sections 39711 and 39713 or communities with a community emissions reduction program implemented pursuant to Section 44391.2.
(2)The ability to
leverage additional public and private funding.
(3)The potential for cobenefits or multiple-benefit attributes.
(4)The potential for the project to be replicated.
(5)Regional benefit, with focus on collaboration between multiple entities.
(6)Support for technologies with broad market and emissions reduction potential.
(7)Support for projects addressing technology and market barriers not addressed by other programs.
(8)Support for enabling technologies that benefit multiple technology pathways.
(f)In implementing this section, the state board, in
consultation with the State Energy Resources Conservation and Development Commission, shall create an annual framework and plan. The framework and plan shall be developed with public input and may use existing investment plan processes and workshops as well as existing state and third-party research and technology roadmaps. The framework and plan shall do all of the following:
(1)Articulate an overarching vision for technology development, demonstration, precommercial pilot, and early commercial deployments, with a focus on moving technologies through the commercialization process.
(2)Outline technology categories and performance criteria for technologies and applications that may be considered for funding pursuant to this section. This shall include technologies for medium- and heavy-duty trucking, including, but not limited to, vocational trucks, short-haul and long-haul
trucks, buses, and off-road vehicles and equipment, including, but not limited to, port equipment, agricultural equipment, construction equipment, marine equipment, and rail equipment.
(3)Describe the roles of the relevant agencies and the process for coordination.
(g)For purposes of this section, “zero- and near-zero-emission” means vehicles, fuels, and related technologies that reduce greenhouse gas emissions and improve air quality when compared with conventional or fully commercialized alternatives, as defined by the state board in consultation with the State Energy Resources Conservation and Development Commission. “Zero- and near-zero-emission” may include, but is not limited to, zero-emission technology, enabling technologies that provide a pathway to emissions reductions, advanced or alternative fuel engines for long-haul trucks, and hybrid or alternative fuel
technologies for trucks and off-road equipment.
(h)(1) In addition to the requirements of Section 44258.4, commencing with the funding plan for the 2019–20 fiscal year of the Air Quality Improvement Program (Article 3 (commencing with Section 44274) of Chapter 8.9 of Part 5), the state board shall include a three-year investment strategy that includes the immediate fiscal year and a forecast of estimated funding needs for the subsequent two fiscal years for zero- and near-zero-emission heavy-duty vehicles and equipment commensurate with meeting the goals of this chapter and the goals of the state.
(2)The three-year investment strategy shall do all of the following:
(A)Describe the role of public investments in supporting the demonstration and deployment of advanced technologies.
(B)Provide an assessment of available funding and the investment needed.
(C)Provide a description of the state board’s portfolio of investments.
(3)The state board, in consultation with the State Energy Resources Conservation and Development Commission, shall include in the investment strategy information related to milestones achieved by the state’s schoolbus incentive programs and the projected need for funding taking into consideration the state’s schoolbus inventory, turnover, and useful life.
Added by Stats. 2022, Ch. 71, Sec. 6. (SB 198) Effective June 30, 2022. Conditionally inoperative on or before June 30, 2030, as prescribed by its own provisions. Repealed January 1, following the inoperative date.
(a)For purposes of this section, the following definitions apply:
(1)“Fully funded” means the High-Speed Rail Authority has secured funding to complete the Merced to Bakersfield segment within the timelines identified in the most recent business plan prepared pursuant to Section 185033 of the Public Utilities Code or project update report prepared pursuant to Section 185033.5 of the Public Utilities Code and the High-Speed Rail Authority Office of the Inspector General has confirmed that the High-Speed Rail Authority has secured that funding.
(2)“Merced to Bakersfield segment” means a 171-mile electrified dual-track segment that is usable for high-speed rail service in the
central valley from Merced to Bakersfield, with a new combined station in downtown Merced, and connections to the Amtrak San Joaquins and the Altamont Corridor Express.
(b)Notwithstanding paragraph (2) of subdivision (b) of Section 39719, beginning with the 2022–23 fiscal year, it is the intent of the Legislature that the High-Speed Rail Authority prioritize use of the funds provided pursuant to Section 39719 to complete the Merced to Bakersfield segment.
(c)Beginning with the 2022–23 fiscal year, the High-Speed Rail Authority shall not enter into new funding commitments with funds provided pursuant to paragraph (2) of subdivision (b) of Section 39719 for activities outside the Merced to Bakersfield segment, except for the following purposes:
(1)Completion of environmental clearance activities and planning
activities required by federal grant agreements or other existing agreements.
(2)State operations activities related to construction management and project development and enterprisewide capital expenditures.
(3)(A) Additional activities, not to cumulatively exceed five hundred million dollars ($500,000,000), that maximize the efficiency of delivering the project, excluding paragraphs (1) and (2).
(B)The High-Speed Rail Authority shall provide advance notification of work described in subparagraph (A) to the High-Speed Rail Authority Office of the Inspector General (OIG) and the chairs of the relevant committees of both houses of the Legislature. The OIG shall conduct a cost-benefit analysis of the proposed work outside the Merced to Bakersfield segment within 60 days of notification and make
a finding as to whether or not expenditure of funds for the proposed work will result in a delay in the completion of the Merced to Bakersfield segment. After that time, the OIG shall provide its analysis to chairpersons of the committees of both houses of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees of both houses of the Legislature that consider the State Budget before contracts for projects outside of the Merced to Bakersfield segment are considered by the High-Speed Rail Authority for approval.
(C)Before expenditure of funds pursuant to this paragraph, the High-Speed Rail Authority shall provide notification of grant applications to the chairpersons of the committees of both houses of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees of both houses of the Legislature that consider the State Budget.
Approval of the grant application by the Department of Finance may be authorized no sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees in each house of the Legislature that consider the State Budget.
(d)(1) This section shall become inoperative on June 30, 2030, or when the Merced to Bakersfield segment is fully funded, whichever is sooner, and shall be repealed on January 1 of the following year.
(2)The High-Speed Rail Authority shall inform the Legislature when the Merced to Bakersfield segment is fully funded in compliance with Section 9795 of the Government Code.
Added by Stats. 2025, Ch. 121, Sec. 5. (SB 840) Effective September 19, 2025.
Beginning with the 2026–27 fiscal year, moneys in the funds shall be allocated in the following priority:
(a)(1) Amounts described in Sections 4210 to 4214, inclusive, of the Public Resources Code to replace the revenues generated by the State Responsibility Area fire prevention fee authorized by Section 4212 of the Public Resources Code.
(2)Amounts appropriated by subparagraph (A) of paragraph (3) of subdivision (g) of Section 6377.1 of the Revenue and Taxation Code.
(3)The sum of three million dollars ($3,000,000) for the establishment of the Legislative Counsel Climate Bureau.
(b)After the amounts specified in subdivision (a) are fully allocated, as determined by the Department of Finance, the remaining moneys in the fund shall be allocated as follows:
(1)Notwithstanding Section 13340 of the Government Code and subject to Section 39719.3, the sum of one billion dollars ($1,000,000,000) is continuously appropriate without regard to fiscal year to the High-Speed Rail Authority for the following components of the initial operating segment and Phase I Blended System as described in the 2012 business plan adopted pursuant to Section 185033 of the Public Utilities Code:
(A)Acquisition and construction costs of the project.
(B)Environmental review and design costs of the project.
(C)Other capital costs of the project.
(D)Repayment of any loans made to the authority to fund the project.
(2)(A) The sum of one billion dollars ($1,000,000,000) is reserved for appropriation by the Legislature in the annual Budget Act or other statute.
(B)It is the intent of the Legislature that the amount reserved pursuant to subparagraph (A) is allocated in the following amounts for the 2026—27 fiscal year:
(i)The sum of one hundred twenty-five million dollars ($125,000,000) for transit passes.
(ii) The sum of twenty-five million dollars ($25,000,000) for seed funding for a University of California Climate Research Center.
(iii) The sum of fifteen million dollars ($15,000,000) for rebuilding Topanga Park.
(iv) The sum of eighty-five million dollars ($85,000,000) for an entity chosen by the Legislature to support climate-focused technological innovation, related research, and the deployment of climate solutions identified in the scoping plan prepared pursuant to Section 38561.
(c)(1) After the amounts specified in subdivisions (a) and (b) are fully allocated, as determined by the Department of Finance, the remaining moneys in the fund, notwithstanding Section 13340 of the Government Code, are continuously appropriated, without regard to fiscal year, as follows:
(A) The sum of eight hundred million dollars ($800,000,000) to the Strategic Growth Council
for the Affordable Housing and Sustainable Communities Program created by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code. Of the amount appropriated in this subparagraph, no less than 10 percent of the annual proceeds of the fund shall be expended for affordable housing, consistent with the provisions of that program.
(B) The sum of four hundred million dollars ($400,000,000) to the Transportation Agency for the Transit and Intercity Rail Capital Program created by Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code.
(C) The sum of two hundred fifty million dollars ($250,000,000) to the State Air Resources Board for community air protection programs and allocated for financial incentives to reduce mobile and stationary sources of criteria air pollutants or toxic air contaminants consistent with community emissions
reduction programs developed pursuant to Section 44391.2 and for support for local air districts’ implementation of Chapter 136 of the Statutes of 2017.
(D) The sum of two hundred million dollars ($200,000,000) to the Transportation Agency for the Low Carbon Transit Operations Program created by Part 3 (commencing with Section 75230) of Division 44 of the Public Resources Code. Moneys shall be allocated by the Controller, according to requirements of the program, and pursuant to the distribution formula in subdivision (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of, the Public Utilities Code.
(E) The sum of two hundred million dollars ($200,000,000) to the Department of Forestry and Fire Protection and allocated as follows:
(i)Eighty-two and one-half percent for healthy forest and fire prevention
programs and projects that improve forest health and reduce emissions of greenhouse gases caused by uncontrolled wildfires.
(ii) Seventeen and one-half percent for the completion of prescribed fire and other fuel reduction projects through proven forestry practices consistent with the recommendations of the California Forest Carbon Plan, including the operation of year-round prescribed fire crews and implementation of a research and monitoring program for climate adaptation.
(F) The sum of one hundred thirty million dollars ($130,000,000) is transferred to the Safe and Affordable Drinking Water Fund established pursuant to Section 116766 for the purposes of Chapter 4.6 (commencing with Section 116765) of Part 12 of Division 104.
(2)(A) Moneys appropriate pursuant to paragraph (1) shall be used
for the purpose of facilitating the achievement of reductions of greenhouse gas emissions in this state in accordance with the requirements of Section 39712 or to improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities, consistent with Division 25.5 (commencing with Section 38500).
(B)For purposes of the moneys appropriated pursuant to paragraph (1), a state agency may comply with the requirements of paragraphs (2) and (3) of subdivision (a) of Section 16428.9 of the Government Code by describing how each proposed expenditure will improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities.
(3)If, for any fiscal year the Department of Finance determines that, after fully allocating the amounts pursuant to subdivisions (a) and (b), there are insufficient annual
proceeds to fully provide for the appropriations specified in paragraph (1) in addition to any state operations costs appropriated in the annual Budget Act, the amounts specified in paragraph (1) shall be proportionally reduced as determined by the Department of Finance.
(d)Any amounts in the fund not needed to fully fund the amounts pursuant to subdivisions (a), (b), and (c) in a fiscal year are available to be appropriated by the Legislature in the annual Budget Act or other statute.
Added by Stats. 2012, Ch. 807, Sec. 2. (AB 1532) Effective January 1, 2013.
(a)Notwithstanding Section 10231.5 of the Government Code, the Department of Finance shall submit a report on or before March 1, 2014, and annually thereafter, to the appropriate
committees of the Legislature on the status of projects funded pursuant to this part and their outcomes.
(b)A report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
Added by Stats. 2012, Ch. 830, Sec. 5. (SB 535) Effective January 1, 2013.
For the report prepared pursuant to Section 39720, administering agencies shall report to the Department of Finance, and the Department of Finance shall include in the report, a description of how the administering agencies have fulfilled the requirements of Section 39713.
Added by Stats. 2012, Ch. 830, Sec. 6. (SB 535) Effective January 1, 2013.
Nothing in this chapter shall be construed as resulting in any taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution.