California Voters Approve $10 Billion Climate Bond
On November 5, 2024, California voters approved a $10 billion bond to fund climate-related programs. The bond measure, known as Proposition 4, received approval by 59.5% of the electorate. The Legislative Analyst’s Office reported that repaying the bond would increase state costs of about $400 million annually for 40 years.
Proposition 4 authorizes the state to issue $10 billion in bonds to fund projects that include water infrastructure, clean energy projects, and climate measures. The proposition enacts SB 867, known as the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. (for more details, see Climate Bond with Offshore Wind Support Makes Ballot.)
Distribution of $10 Billion
The bond would distribute the funds in the following areas:
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.
Funding for Clean Energy and Offshore Wind
The $850 million for clean air programs will be distributed in the following way:
$475 million to CEC to support certain activities related to offshore wind generation, including the expansion and improvement of port infrastructure;
$325 million to the California Infrastructure and Economic Development Bank, California Energy Commission (CEC), or other organization for the public financing of clean energy transmission projects to meet the state’s clean energy goals; and
$50 million to CEC for grants or loans to support the Long-Duration Energy Storage Program.