In the November 2024 election, California voters approved Proposition 4, authorizing the state to issue $10 billion in general obligation bonds to fund climate resilience and environmental conservation projects. Proposition 4 was authored by Senator Ben Allen as Senate Bill 867. The bond measure, titled the Safe Drinking Water, Wildfire Prevention, Drought Preparedness and Clean Air Bond Act of 2024, represents the largest climate investment in California's history.
There are several chapters in Proposition 4 that outline the key allocations for projects to be funded:
- Water Projects ($3.8 billion): Enhancing safe drinking water access, water recycling, groundwater storage and flood control measures.
- Wildfire and Extreme Heat Mitigation ($1.95 billion): Implementing forest health initiatives and community protection strategies against wildfires and extreme heat events.
- Natural Lands and Wildlife Protection ($1.9 billion): Conserving parks, wildlife habitats and natural landscapes.
- Coastal and Ocean Protection ($1.2 billion): Addressing sea level rise and safeguarding coastal ecosystems.
- Clean Energy Infrastructure ($850 million): Supporting renewable energy projects, including offshore wind and energy storage systems.
- Agricultural Adaptation ($300 million): Assisting farms in adapting to climate change through sustainable practices.
Applicants will be able to apply for Proposition 4 funds through competitive grant processes administered by the California Natural Resources Agency and its subsidiary Departments. The bond measure specifies that at least 40% of the funds must be designated to projects benefiting disadvantaged communities, with a minimum of 10% allocated to projects serving severely disadvantaged areas within the State.
Currently, the Governor and Legislature are debating how the first round of funds should be allocated and how much funding will be available. Some organizations are hoping for a quick release of funds, while others are advocating for a slow rollout for their more expansive, long-term projects. The Governor's 2025-26 January State budget proposal outlines his proposal for Proposition 4 allocations, but the final State budget and allocation of these funds will be negotiated with the Legislature until a final State budget is enacted by June 30. Once the State budget is enacted, competitive grant solicitations for Proposition 4 funds are expected to open this year.
Proposition 4 reflects Californians' commitment to combating climate change and investing in sustainable environmental practices. Nossaman can assist clients in accessing Proposition 4 funds for projects intended to meet these climate change goals.
California Water Views – 2025 Outlook
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