A $10 billion bond for climate-related programs will be up for voter approval in the November 2024 election. On July 3, 2024, Governor Gavin Newsom signed into law SB 867, which, if approved by the voters, would authorize the issuance of bonds to finance projects a variety of programs related to water resilience, clean energy, and climate measure. The bill received overwhelming support in both houses of the legislature. The bond measure will be on the ballot as Proposition 4.
The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 would authorize bonds for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. (See below.)
More specific to clean energy, the bill would authorize $850 million for “clean air” distributed for the following purposes:
$325 million to the California Infrastructure and Economic Development Bank, CEC, or other organization for the public financing of clean energy transmission projects to meet the state’s clean energy goals;
$50 million to CEC for grants or loans to support the Long-Duration Energy Storage Program; and
$475 million to CEC to support certain activities related to offshore wind generation, including the expansion and improvement of port infrastructure.
Port Upgrades for Offshore Wind
Industry coalition Offshore Wind California requested $1 billion in bond funding for port infrastructure as “an important down payment” in the needed investment for port upgrades.
State legislators wrote Newsom and legislative leaders in March 2024 to urge them to include $1 billion in bond funding for port infrastructure as “a necessary step to launch this new industry, leverage federal funding and private investment, and – ultimately – sustain it through ongoing operation and maintenance of floating offshore wind structures.” Industry coalition Offshore Wind California requested $1 billion in bond funding for port infrastructure as “an important down payment” in the needed investment for port upgrades.
In urging Newsom to sign the bill, the coalition later wrote that that state’s goals for offshore wind “are at risk without a substantial funding commitment to jumpstart offshore wind port infrastructure projects, which will cost at least $12 billion to get the necessary port infrastructure ready for full scale build out…”
Offshore Wind California stated that the $475 million “is a critical next step to making California offshore wind a reality, which will ensure turbines can start spinning in time to deliver on the technology’s promise of providing grid reliability, helping address clean air, providing affordable energy once built to scale, and creating new family-wage jobs to meet our labor and workforce development goals.” The coalition also noted that the funding would “catalyze state and federal funding, in addition to leveraging private dollars that will help stimulate responsible floating offshore wind development while bringing this technology online. “
Distribution of $10 Billion
The $10 billion would be distributed for the following purposes:
$3.8 billion for safe drinking water, drought, flood, and water resilience programs;
$1.5 billion for wildfire and forest resilience programs;
$1.2 billion for coastal resilience programs;
$450 million for extreme heat mitigation programs;
$1.2 billion for biodiversity protection and nature-based climate solution programs;
$300 million for climate-smart, sustainable, and resilient farms, ranches, and working lands programs;
$700 million for park creation and outdoor access programs;
$850 million for clean air programs.