Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection and Energy

The issues we are voting on today have been discussed in several Subcommittee hearings over the past couple months. We have heard and appreciate the feedback from the members of the public. The actions we will be taking today represent the Legislature's budget plan. This is a very difficult budget year, meaning that we have some very difficult decisions.

I do look forward to continuing discussions with the Administration and the Assembly in a collaborative and thoughtful manner as we move towards a final budget agreement in the next few weeks. I'd like to start by establishing a quorum. Please call the roll.

[Roll Call].

We do have a quorum, and I'd like to, as a point of personal privilege, I want to thank Senator Dahle for his service on this Subcommittee. I was just informed--I guess I should have known, I haven't really quite hidden--this is our last Subcommittee of the year, and so you've served on this Subcommittee for many years.

I've enjoyed serving with you on the Subcommittee, and I know there's certain matters I can just turn over to you because you're going to go full speed ahead on them, and we've actually been aligned on more things than not. So I know these issues are almost everything we discuss here is mission-critical to your district, your vast district. So we appreciate your service on this committee.

Sure. Well, thank you, Mr. Chair, and I just want to, first of all, thank my team for all the years being here, Heather and Emily for the help, and also Carrie, who stepped in from some of the energy stuff. That's been very--and your staff as well, and the committee staff, been very fortunate to sit on the committee.

Love it. That's one of my favorite committees. And, you know, at the end of the day, and to all the LAO and the Administration and all the folks that spend the time behind the scenes drilling down in all the things that we ask for and need to make good, solid decisions.

And I just say, you know, as a farmer, I always have this philosophy: the land never lies. You know, we tell lots of stories in here and we have lots of--but there's some truth somewhere out there. There's a lot of spin in this, in this building, but I always say the truth is somewhere.

And I say as a farmer, the land never lies. If you make a mistake, for example, fire is something we've, you know, had policies on, and it tells a story if you go out and look at it. Well, there's a story behind all the policies we make here with all the staff doing the hard work.

And so I want to just thank the Administration, the LAO, all those folks that are, that don't get recognized. It's been a very great privilege to sit on this committee and work with great Senators. So thank you for--this is my last meeting, and I look forward to see how the budget comes out.

And I don't know what I'm going to do in the future. I've been elected 29 years straight, and it'll be the first year that I don't have to go to a meeting somewhere, and so my family's a little nervous. They're not sure what I'm going to do, but anyway, I want to thank you all for all the good, hard work that you've done here and appreciate your time.

Well, public comment is always available, so you can reach out to us privately or you can come join us in public comment, and so with that, we will turn to public comment, and that's what we're going to do. First, we will institute a time limit, ask folks to speak for no more than two minutes, and begin by saying your name and organization. And do we have anyone here for public comment? Please line up and start.

All right, well, I'm not shy. Good morning, Mr. Chair and Senators. Happy last hearing. I'll be really short. Isabella Gonzalez Potter with the Nature Conservancy. We are disappointed that the Senate and the Assembly rejected the Governor's proposal to shift the Wildlife Conservation Board funding to GGRF. Very disappointed with that change. This funding really is critical to advance conservation and biodiversity priorities as we grapple with the increasing impacts of climate change. Thank you.

Good morning. Kyle Jones, Policy and Legal Director with Community Water Center. I just want to thank the Legislature for approving funding to support two of our sponsor bills last year: SB 3 to prevent illegal shutoffs and AB 664 to help renters access safe drinking water. Also thankful for support for SB 659 by Ashby to support drinking water quality during recharge projects.

And then finally, just want to thank the committee for preserving some funding for infrastructure for water and wastewater. We have a long way to go, and so this funding is helpful, and we look forward to continuing conversations as part of a climate bond discussion. Thank you.

Good morning. My name is Sam Greenlee. I'm here today on behalf of Alchemist Community Development Corporation, here in Sacramento, and on behalf of the more than 250 organizations who make up the Save Market Match Coalition. I'd like to express my sincere gratitude to the Senate and Assembly Budget Committees for preserving 33.2 million for the California Nutrition Incentive Program, also known as CNIP, which funds Market Match.

Market Match provides a dollar for dollar match on CalFresh to spend at farm direct sites across the state. We recognize the incredible challenges in balancing the state budget and the many difficult decisions that were made, and we want to commend you and fellow state leaders for recognizing that CNIP is not only a lifeline for food-insecure families, but also supports small and mid-sized farmers and rural communities, and reduces greenhouse gas emissions by reducing travel distance from farm to table.

We hope the final state budget act, signed by the Governor will fully fund 35 million for CNIP, which was previously allocated in the 2023-2024 budget, and with state CNIP funding, California will be eligible to receive federal matching grant funding from the USDA. Thank you for your ongoing leadership.

Thank you.

Michael Jarrett, on behalf of NextGen California and the Community Alliance with Family Farmers. First, I'd like to echo the comments made by Alchemists on the CNIP Program. Thank you for that fund shift. In addition, I'd also like to thank you, Chair and Members, for preserving the California Underserved Small Producer Program and the Food Hubs Program.

These are vitally important programs to help small family farmers deal with the impacts of climate change and also make more resilient food systems. So thank you so much for all of your hard work on this budget.

Thank you.

Good morning. Ryan Souza, on behalf of the Public Health Institute. In an effort to keep this short, just want to align my comments with the colleagues before me on the inclusion of the CNIP funding in the budget. Thank you so much.

Thank you.

I'm short. Hi, Mr. Chair and Members. Kendra Harris, the Climate Center. I want to thank the Legislature for preserving some important investments in climate programs. You know it's a tough year. Want to thank you for considering the program, Equitable Building Decarbonization, and other equity investments.

We want to also encourage you to continue to support efforts to get a climate bond and as well as eliminate all oil and gas subsidies in the State of California. Those money can go back in General Fund and support climate programs. Thank you.

Thank you.

Hi. I'm Susie Sutphin, representing the Center for Land-Based Learning, and I too am here to give thanks for restoring the funding for CNIP and helping to save Market Match. I stepped away from our mobile farmers market just today so I could come and show my appreciation. We are on both sides of the coin.

Not only are we going directly into the communities that need it most, it's mobile, so for the people who have maybe even mobility issues, we're going to those communities that are underserved as well as providing new markets for beginning and new small farmers. So thank you so much.

Thank you.

Good morning. Bill Magavern with the Coalition for Clean Air. This budget, unfortunately, is clearly a setback for air and climate protection, but I do want to thank the Legislature and particularly this subcommittee for including in your proposal provisions that will make sure that the Clean Cars 4 All programs that are up and running successfully in the Air Districts are able to keep going while at the same time retaining funding to get the statewide program off the ground. We also support the CARB BCPs and the additional money for Building Decarbonization.

Good morning, Chair and Members. Tom Knox of Valley Clean Air Now. Want to echo Bill Magavern's comments on Clean Cars 4 All. Thank you for the proposal to reallocate that funding. It's a fair and equitable way to keep the existing five air district programs for Clean Cars 4 All going while allowing CARB's other programs to launch. This preserves the one proven solution for ZEV equity out there. Thank you very much.

Good morning. Dr. Jeff Boehm with the Marine Mammal Center, representing 12 network members that do this work up and down the California coast from San Diego County up to the Oregon border. We appreciate the restoration of the funding for this network, the importance of this work. The stresses on the ocean have never been greater, and that vanguard that is out there on the front lines. Thank you for your leadership.

Hi, good morning. My name is Virgil Looney, and I work at CHDC, and we're leading up the effort to stand up the Statewide Financing Assistance and Clean Cars 4 All Program, and so I'm here to ask to not reduce our funding in half. This cut is going to delay things further, and as we stand right now, we're already under contract with CARB. We're already under contract with key partners and with other community-based organizations who are relying on these funds.

And so to cut it in half is going to have a dramatic impact on our ability to not only reach community members who have been underserved and underresourced for years, but then also our ability to compensate our CBO partners fairly across the State of California.

And we're already deep into our program design and well on our way to launch this program this summer. So if we, if we, if we have to manage this reduction in funding, it's going to cause more delay and negative impacts for the communities that we're trying to save. Thank you.

Thank you.

Hi. Nancy Wahl-Scheurich from the California Association of Resource Conservation District, CARCD. I'm here today to strongly oppose and really implore you to not cut the seven million dollars in funding to the Department of Conservation's Climate Smart Land Management Program.

CARCD, along with the Sherwood Band of Pomo Indians, the Santa Cruz RCD, and the Mendocino RCD were all awarded grants under this program in April prior to the cuts. CARCD actually has a signed contract. CARCD is going to use this money, partnering with CDFA to pull in federal funding through the RCPP Program, 25 million dollars of federal funding to get conservation on the ground in California, and it pretty much falls apart if we lose this funding because we were basing capacity built under that funding for that request.

And the combined impacts of all the four grants under that program would be really bad. They will be creating jobs, boosting local economies, and helping the state achieve 30 by 30 climate goals, and more importantly, they'll be saving the state money by preventing wildfires that affect health and safety. So I really want you to think about that carefully. I thank you so much for your time.

Thank you. Thank you.

Good morning. Tasha Newman, on behalf of the California Council of Land Trusts, Peninsula Open Space Trust, the Santa Clara Valley Open Space Authority, Bolsa Chica Land Trust, and Big Sur Land Trust. We're here today, very concerned about the Legislature's proposed rejection to backfill the Wildlife Conservation Board's funding with GGRF.

I know there was one program that is slated to get funding. However, 112 million dollars looks like it won't be funded if the GGRF backfill doesn't happen. So we're very concerned about that because there are shovel-ready projects ready to go, ready to combat climate change, and help the state achieve its 30 by 30 goals.

We are also thankful that the Habitat Conservation Fund is protected going forward. However, we are concerned about the 45 million dollar cut to that fund. So thank you for your time today, and I would like to urge the Legislature to pass a climate plan this year. Thank you.

Thank you.

Hi there. Megan Mekelburg, on behalf of two different clients today. So first, I'll start with CALSTART. We're really concerned about the cuts to charging infrastructure and medium and heavy duties of incentives. So no new money for that one. We're really just concerned about what signal this sends to the market as we are about to hit the first goals in ACF in 2025. Really encourage the Legislature to explore other means of funding, including through a climate bond.

Separately, on behalf of the Building Decarbonization Coalition, really appreciate the restoration of funds in the budget for the Equitable Building Decarbonization Program and appreciate Chair Becker's leadership on this particular issue. So thank you.

Thank you.

Good morning, Mr. Chair and Members. Obed Franco, here on behalf of the California Electric Transportation Coalition, otherwise known as CalETC. CalETC supports the agreement which found more money to fund the Clean Cars 4 All Program for the local Air Districts. These programs would have run out of money this year, leaving hundreds of low-income residents from participating in our transformative, zero-emission vehicle future, but for the same reason you found funds for the Clean Cars 4 All, we are asking you to restore 40 million dollars to continue the transition to media and heavy-duty ZEVs.

The Heavy-Duty Vehicle Incentive Program at CARB supports the purchase of these vehicles and if not funded in this fiscal year as currently proposed, it is at risk of running out of funds, resulting in a chilling effect on the market and vehicle deployment. Given the disproportionate and negative impact these vehicles have in terms of public health and given regulatory timing, it is important that the Administration and Legislature prioritize investments in MHD ZEVs this year.

Finally, we urge you to restore 50 million for ZEV infrastructure investments in this--this is the minimum we need this next fiscal year to continue our progress on ZEV infrastructure. For light, medium, and heavy-duty charging, we need this the most. Thank you.

Thank you.

Good morning. I'm Catherine Freeman, on behalf of the California State Association of Counties, and we represent all 58 counties. Just two things. One is to support and thank you for the inclusion and restoration of an extreme heat package. We need that very much. And then second, the restoration of the critical dam safety infrastructure. Our counties rely on this for the safety of our communities. Thank you very much.

Thank you.

Good morning, Chair and Members. Kim Stone of Stone Advocacy, on behalf of the California Solar and Storage Association, in appreciation for the Legislature's action to decline to impose a fee on solar self-consumption to fund the Energy Resources Program Account, the ERPA Account. Very grateful for that. We've had a rough year and you're not making it any worse. Thank you.

Hello, Chair and Members. Nicholas Mazzotti, on behalf of East Bay Regional Parks District, Mid Peninsula Regional Open Space District, Save the Redwoods League, Sempervirens Fund, and the Land Trust of Santa Cruz County, thanking the Legislature, particularly the Senate, for your leadership in restoring funding for Wildlife Conservation Board and the State Coastal Conservancy.

Both of these agencies do critical work throughout the state and make a lot of investments in our climate and environmental goals. So thank you for making those restoration or fund shifts to GGRF. And then additionally, on behalf of the California State Parks Foundation, expressing concern around the cuts to the coastal resilience funding in state parks, there was about 11 million dollars invested for this purpose in the Nature-Based Solutions Package, and this year's budget proposal cuts 6.7 million dollars of this critical funding. State Parks, they own a quarter of the state's coastline, so these investments are really critical. So thank you.

Thank you.

Good morning. Krystal Straight, on behalf of American Clean Power California. Really appreciate this committee's work, especially the Chair, in making sure that offshore wind, particularly through our partnership with the ports, that that money was restored.

We appreciate and understand that some of the money is still being moved to handle Coastal Commission and other staffing requirements that are needed, but we certainly hope that this shows again the commitment that the Legislature has clearly shown for offshore wind and its production. So thank you.

Absolutely. Thank you.

Dan Cha, on behalf of the Port of Long Beach, echoing the comments of my colleague. Obviously we would appreciate full restoration of that funding, but greatly appreciate your recognition that without ports, offshore wind does not happen without upgraded ports. Thank you so much.

Thank you.

Good morning, Mr. Chair. Chris Micheli, on behalf of the Los Angeles County Metropolitan Transportation Authority, here urging you to keep GGRF funding for transportation. Thank you, sir.

Thank you very much. Okay, well, thank you. Oh. Last public comment. I was wondering when you came in, like--okay.

Jordan Curley, on behalf of American Clean Power, here to thank you very much for the restoration of the funds towards offshore wind. We appreciate understanding that this is an important part of our clean energy future, and just want to say thank you very much.

Okay. Excellent. Well, good. Well, with that, we're going to move on to voting, and we'll move now to the vote-only calendar. So I'm going to first ask for a motion. So we have three parts to this, looks like. So we were going to start with Part A.

And I'd love a motion on issues five through 7, 9 through 17, 19, 21 to 31, 33 to 35, 39 to 44, 49, 54 to 57, 62, 72, 74, and 75. You in California won't appreciate this, but growing up at the East Coast, we used to have school closures.

We'd have to listen to the radio to see if your school was shut down for snow, and they would read off all the numbers of the schools. You know, we'd be listening to if your number was called. So I feel like that was the feeling I just got reading off all those numbers, but anyway, we'd love a motion on those. So moved by Senator Dahle. Please call the roll.

[Roll Call].

Those items are approved on a three to zero vote. Now we would like, continuing Part A, love a motion on issues three, four, 18, 20, 32--yeah--20. Yeah, 32, 60, 67, and 68. Do I have a motion? Please call the roll.

[Roll Call].

On a two to one vote, those issues are approved. Now I would love a motion on issues one, two, eight, 36, 37, 38, 45 to 48, 50 to 53, 58, 59, 61, 63 to 66, 69 to 71, and 73. May I have a motion? Senator Blakespear moves. Please call the roll.

[Roll Call].

Two to zero is the vote and those issues are approved. We will now move on to the vote-only calendar Part B, and I would like a motion for those for issues one, four, six through nine, 18, 24 to 31, 34 to 36, 38 to 39, 41, and 42. Do I have a motion? Senator Dahle moves. Please call the roll.

[Roll Call].

The vote is three to zero and those issues are approved. Now, I would love a motion on issues two, three, five, 11, 13 to 17, 20 to 22, 32, 37, and 40. May I have a motion? Senator Blakespear moves. Please call the roll.

[Roll Call].

The vote is two to zero. Those issues are approved. And issues ten, 12, 19, 23, and 33. Love a motion.

I'll move.

Senator Blakespear moves. Please call the roll.

[Roll Call].

The vote is two to zero and those are approved. Make sure I got for the previous issue was two to one. This is two to zero. Those are approved. Now finally, vote-only Part C. Would love a motion on issues one and two. Senator Blakespear moves. Please call the roll.

[Roll Call].

The vote is two to zero and those issues are approved. So with that, I appreciate--I just want to, I guess, take a moment and thank my team here, our consultants who have worked so hard for this entire year.

In good budget years, it's a scramble because we're trying to see what can get fit in tough budget years. We're obviously looking at cuts and trying to manage to move all of our efforts in clean energy, in regenerative agriculture, in farming and water, safety and clean drinking water.

All these, you know, move everything forward as best we can while maintaining the best bang for the buck and, you know, and making sure the cuts have the least least harm possible and slow our momentum the least and that we keep important programs moving forward. So just appreciate the work of consultants and team.

I appreciate the work of my personal staff and particularly the Administration and the Department of Finance and LAO who has been here and have answered all of our questions of our many questions throughout this difficult year. So I appreciate that and thanks, everyone, who's participated. There is still the opportunity to put comments on our website. Thanks everyone for your patience and cooperation. We've concluded the agenda for today's hearing of Senate Budget Subcommittee Two, and we are adjourned.