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Gov. Gavin Newsom’s newest proposed budget directs billions of dollars of surplus state funds and federal Covid relief to ameliorating the climate crisis.

The May revision of the 2021-22 budget proposal provides nearly $1.8 billion for zero emission transportation.

There also is $900 million for renewables and other clean energy investments.

Funded areas include:

Long duration storage Industrial energy efficiency Green hydrogen Offshore wind Capping polluting, abandoned well Agricultural energy and water efficiency

The proposal also includes exceptionally large budget increases for the California Air Resources Board and California Energy Commission. ARB’s expenditures would rise from $1.17 billion proposed in January to $2.37 billion, an 100% increase. The CEC’s budget would soar 140%, from $993.6 million to almost $2.4 billion.

Another $5.1 billion would be allocated to drought response, including safe drinking water.

Largest investment in the environment

“This is the largest one-time investment in the environment,” Wade Crowfoot, Natural Resources Secretary, said during a May 14 budget conference call. The budget is expected to be “game changing.”

The total funds for zero emission vehicle programs are $3.2 billion over three years, with $1.79 billion for the upcoming fiscal year.

“It is a combination of Cap-and-Trade funding carried forward from the Governor’s January budget proposal and new proposed funding from the General Fund and the Air Pollution Control Fund,” David Clegern, ARB spokesperson, told Current. The funds would be distributed among the Air Board, Energy Commission, and Governor’s Office of Business and Economic Development.

About 60% of the funds to reduce climate pollutants from transportation are to benefit struggling communities that are heavily polluted by industrial, commercial, and residential vehicle traffic.

“It is not just about rebuilding but refashioning,” Jared Blumenfeld, California Environmental Protection Agency secretary, said.

Clean air advocates welcomed the hefty, proposed budget increase.

“We applaud the focus on reducing the many health burdens and disparities caused by transportation pollution by expanding active transportation and transit options while also accelerating equitable access to the health benefits of zero-emission cars, buses and trucks,” Will Barrett, Director of Clean Air Advocacy for the American Lung Association in California, said.

The California ARB cap-and-trade budget would fund 1,000 electric school buses, 1,000 zero emission transit buses and 1,150 zero emission drayage trucks.

There is $708 million for fire prevention in this revision, including for reducing fuels in forests and helping make fire-prone communities safer. The total is $1.2 billion when adding the $536 million spent on actions already taken.

Funding Offshore wind

The budget adds $20 million to develop offshore wind. California offshore wind is “the perfect yang to the yin of solar,” David Hochschild, CEC chair said.

Pending legislation, AB 525 by Assemblymembers David Chiu (D-San Francisco) and Jordan Cunningham (R-San Luis Obispo) requires the Energy Commission to develop a plan by the end of 2022 to create a state offshore wind industry. The Biden Administration’s approval of a large offshore wind project off the coast of Massachusetts and Rhode Island last week is expected to help ease the way for wind turbines to be built about 20 miles off the coast of California in Humboldt, Morro Bay and San Luis Obispo.

The budget revise, which will be debated by the legislature, also includes $2 billion to help struggling Californians cover unpaid power, gas, and water bills .

Another $200 million would be dedicated to capping abandoned, leaking oil and gas wells.

“Plugging and remediating oil wells is a critical next step to meet California’s climate goals,” Veronica Wilson, California Organizer, Labor Network for Sustainability, said. “All displaced fossil fuel workers and communities disproportionately impacted by pollution must be the first people who get access to these good jobs.”

The May revision includes $25 million for resilience grants and climate adaptation.

The Governor proposes substantial assistance to farmers to increase their water efficiency, reduce greenhouse gases, build dairy digesters, and increase soil resilience.

The Department of Food and Agriculture’s Dairy Digester Research and Development Program would receive $20 million, an increase of $8 million from the January budget proposal.

The State Water Efficiency and Enhancement Program would receive $40 million in the Governor’s plan. To date, $20 million in grants is available to help farmers invest in water distribution and irrigation systems that save water and greenhouse gases.