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 (965Million).Thebudgetincludesa965 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 (25Million).Aspartofthecap−and−tradeexpenditureplan,theGovernorproposes25 million (GGRF) ongoing for several new and expanded climate adaptation research and technical assistance activities.
• New Climate Catalyst Loan Fund (250Million).Thebudgetproposes250 million (General Fund) in 2020-21 and an additional 750millionin2023−24toestablishanewClimateCatalystRevolvingLoanFund(ClimateCatalystloanfund).Thefundwouldlendmoneytopublicandprivateentitiesforclimate−relatedprojectsthathavedifficultygettingprivatefinancing.•ClimateBond(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