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June 13, 2019

California Legislature Passes Budget

Today, the California Legislature passed a $214.8 billion budget, which is $1.3 billion more than was proposed in Governor Gavin Newsom’s May Revision.

The budget provides $130 million for safe drinking water, of which $100 million will come from the Greenhouse Gas Reduction Fund (GGRF) and $30 million will come from the General Fund. Approximately $13 million from the General Fund will go to fund drinking water emergencies in disadvantaged communities and households as well as for operation and maintenance activities that are cost prohibitive for many households.

GGRF adjustments include a $25 million cut to the Diesel Engine Replacement and Upgrades account, reduced to $65 million from the governor’s original proposal of $90 million. Western Growers and other industry groups will work to restore these funds.

Regarding other GGRF funding categories:

  • Methane Reduction funding went from $35 to $34 million
  • Healthy Soils funding remains at $28 million
  • Clean Trucks, Buses & Off-Road Freight Equipment remains at $182 million
  • Strategic Growth Council was cut by $72 million

The budget also includes $70 million for various projects pertaining to pending Voluntary Settlement Agreements related to the San Joaquin and Sacramento River systems.

In the days ahead, we expect to see “budget trailer bills” that implement the funding amounts contained in the budget.

For questions, contact Gail Delihant or Matthew Allen at (916) 446-1435.