Gov.’s New Budget Includes Big Increase in Climate Protection Spending

Gov. Jerry Brown’s proposed state spending plan for 2016-17 includes $3.1 billion from the carbon cap-and-trade program to cut greenhouse gases , promote low carbon transportation and curb short‑lived climate pollutants.

At least one fourth of the funds are to be used to reduce climate pollution in disadvantaged communities.

The new spending plan also includes $719 million in new general fund monies that aim to reduce the impacts of climate change, including from wildfires, dry spells and heat waves.

“Drought and climate change are part of the future,” Brown said during a Jan. 7 press conference.

The proposed increase more than doubles current spending of cap-and-trade funds. The 2015-16 budget allocates $1.4 billion to climate protection measures, said Natural Resources Secretary John Laird.

The significant increase for the upcoming fiscal year beginning in July includes $700 million from unappropriated cap-and-trade revenue.

Brown noted that the state is striving to slash greenhouse gases, with the proposed spending only one tool at its disposal. The state’s annual carbon emissions are approximately 460 million metric tons, with state law, regulations and policies seeking to slash them to 265 million metric tons.

Decarbonizing the economy, Brown pointed out, includes improving the energy efficiency of homes, businesses, industry, agriculture and transportation and increasing the use of renewable and low carbon resources. The proposed spending plan for the state allocates a total of $122.6 billion in general fund revenues. The new budget proposal, which will be sliced and diced by the Legislature over the next few months, directs climate protection funds as follows: $500 million to the California Air Resources Board for low carbon transportation and fuels; $25million to the California Energy Commission for biofuel facilities; $400 million to the Strategic Growth Council for sustainable communities and affordable housing; $500 million for the high speed rail project; $200 million to public transit and intercity rail; $180 million to CalFire for forestry protection and carbon sequestration; $100 million to the Department of Transportation to promote biking, walking and other alternatives to driving under its “Low Carbon Road Program;” $60 million to the Energy Commission for joint water-energy efficiency and rebate programs; $75 million to the Department of Community Services & Development for energy efficiency and weatherization; $60 million to the University of California and the state university system for renewable energy and efficiency projects; and $30 million to the Department of General Services to reduce state agencies’ energy use and cut greenhouse gases by 10 percent. Proposed funding to reduce short-term climate pollutants includes: $40 million to the Air Board for curbing refrigerants and wood smoke; $55 million to the Department of Food and Agriculture for dairy digesters and agricultural practices that reduce global warming gases; and $100 million to Cal Recycle to reduce waste sent to landfills, which are a key source of methane gas. In addition, the Division of Oil, Gas & Geothermal Resources would get an $1.4 million budget increase for pipeline inspections, mapping and identifying potential threats. The governor’s spending blueprint plan also includes $2 billion for infrastructure investments in three aging state buildings. Top of that list is a $1.5 billion allocation for a new Natural Resources Building, as well as $500 million for deferred maintenance of state facilities.

“The deferred maintenance on existing state infrastructure is staggering—estimated to total $77 billion,” according to the proposed state budget. — Elizabeth McCarthy