“Push for a Multibillion Dollar Climate Bond Gains Momentum in California”
Dozens of environmental groups, renewable energy companies, labor unions, water agencies, and social justice advocates are actively lobbying state lawmakers in Sacramento to place a multibillion-dollar climate bond on the November ballot. The proposed bond would allow the state to borrow up to $10 billion to fund various projects related to the environment and climate change.
The push for the climate bond comes after Governor Gavin Newsom initially proposed spending $54 billion on climate initiatives in 2022 but later had to cut that funding to address recent budget deficits. This reduction in funding has spurred the need for alternative financing options to support crucial environmental projects.
Various stakeholders have launched ad campaigns and advocacy efforts to promote the climate bond proposal. For example, WateReuse California, a trade association advocating for projects that recycle treated sewage and storm runoff into drinking water, has called for going “ALL IN on a Climate Bond.” Additionally, companies looking to build offshore wind turbines have emphasized the importance of investing in California’s ports to advance offshore wind energy.
The proposed climate bond measure has sparked intense negotiations among lawmakers, with details of the potential spending plans recently coming to light. Two spreadsheets outlining the proposed spending under Assembly Bill 1567 and Senate Bill 867 have been obtained, highlighting allocations for wildlife protection, safe drinking water, coastal erosion prevention, and wildfire mitigation.
Notably, the proposed spending includes significant investments in infrastructure to support offshore wind farms, such as building facilities at California ports and constructing electric transmission lines to connect green energy to the grid. While negotiations are ongoing, lawmakers are aiming to finalize the details of the climate bond measure by June 27.
The debate over whether to include a climate bond on the November ballot is also considering other proposed bonds, such as those for school construction, to avoid overwhelming voters with multiple debt-related initiatives. Lawmakers are mindful of the state’s debt service ratio and the potential impact on California’s credit rating.
As discussions continue, stakeholders are emphasizing the long-term benefits of investing in climate and environmental projects through a bond measure. The focus is on ensuring that the allocated funds will have a lasting impact and contribute to sustainable solutions for future generations.
While the final details of the climate bond measure are still being negotiated, the push for sustainable investments in California’s future remains a top priority for advocates and policymakers alike. Stay tuned for updates on the progress of the proposed climate bond as it moves closer to potential inclusion on the November ballot.