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Cal State Document

Publication Date



In this report, we assess the Governor’s major 2020-21 budget proposals related to climate change. The four proposals we evaluate are:

• Cap-and-Trade Expenditure Plan ($965 Million). The budget includes a $965 million (Greenhouse Gas Reduction Fund [GGRF]) discretionary cap-and-trade expenditure plan. Funding would mostly go to a variety of existing environmental programs, including programs related to low carbon transportation, local air quality improvements, and forestry.

• Expanded Climate Adaptation Research and Technical Assistance ($25 Million). As part of the cap-and-trade expenditure plan, the Governor proposes $25 million (GGRF) ongoing for several new and expanded climate adaptation research and technical assistance activities.

• New Climate Catalyst Loan Fund ($250 Million). The budget proposes $250 million (General Fund) in 2020-21 and an additional $750 million in 2023-24 to establish a new Climate Catalyst Revolving Loan Fund (Climate Catalyst loan fund). The fund would lend money to public and private entities for climate-related projects that have difficulty getting private financing.

• Climate Bond ($4.8 Billion). The Governor proposes a $4.75 billion general obligation bond for the November 2020 ballot that would fund various projects intended to reduce the impacts of climate change. Approximately 80 percent of the funds would address near-term risks—such as floods, drought, and wildfires—with the remainder to address the longer-term risks of sea level rise and extreme heat.