{"id":301158,"date":"2025-06-19T01:04:48","date_gmt":"2025-06-19T01:04:48","guid":{"rendered":"https:\/\/peraltafinancing.com\/agriculture\/legislature-passes-budget-proposal-negotiations-continue-over-investments-in-agricultural-climate-solutions-calcan\/"},"modified":"2025-06-19T01:04:48","modified_gmt":"2025-06-19T01:04:48","slug":"legislature-passes-budget-proposal-negotiations-continue-over-investments-in-agricultural-climate-solutions-calcan","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=301158","title":{"rendered":"Legislature Passes Budget Proposal, Negotiations Continue Over Investments in Agricultural Climate Solutions – CalCAN"},"content":{"rendered":"


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The legislature recently passed its <\/span>budget proposal<\/span><\/a> for the upcoming fiscal year starting in July 2025 and ending in June 2026 (FY 25-26). The legislature\u2019s budget proposal did not include proposals regarding agricultural climate solutions to be funded through Proposition 4 and the Greenhouse Gas Reduction Fund (GGRF). The legislature and the Governor will continue negotiations in the next two weeks to approve a final budget before the start of the fiscal year on July 1. This means that these investments may be negotiated as part of the final forthcoming June budget, or they could be negotiated separately through a series of follow-up budget bills (known as budget bill juniors and budget trailer bills) in August and September.\u00a0<\/span><\/p>\n

The legislature\u2019s budget proposal differs from the <\/span>Governor\u2019s May Revise budget proposal<\/span><\/a> in a few ways that impact climate resilient agriculture investments, which we summarize in the table below:<\/span><\/p>\n\n\n\n\n\n\n
Key Issues<\/b><\/td>\nGovernor\u2019s May Budget Proposal<\/b><\/td>\nLegislature\u2019s June 13 Budget Proposal<\/b><\/td>\n<\/tr>\n
Proposition 4 <\/b>(Climate Bond)<\/span><\/td>\nProposes Proposition 4 investments towards a suite of agricultural climate solutions (see list in section below).<\/span><\/td>\nIndicates that Proposition 4 investments will be determined in later budget bills in the summer.<\/span><\/td>\n<\/tr>\n
Cap-and-Trade<\/b><\/td>\nProposes extending the current Cap-and-Trade Program through 2045 via the budget process without any reforms.<\/span><\/td>\nIndicates that Cap-and-Trade reauthorization should be achieved through the normal policy bill process. Lead negotiators in the legislature have expressed interest in some Cap-and-Trade reforms.\u00a0<\/span><\/td>\n<\/tr>\n
Greenhouse Gas Reduction Fund (GGRF)<\/b><\/td>\nProposes allocating $1.5 billion annually for CalFire and $1 billion annually for High Speed Rail from GGRF. Indicated that the remainder of GGRF allocations will be negotiated with the legislature.<\/span><\/td>\nProposes allocating $500 million per year for FY 25-27 for CalFire from GGRF. Indicates remaining GGRF allocations will be determined in later budget bills.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The following three sections provide more background and summarize CalCAN\u2019s positions on these three issues.<\/em><\/p>\n\n

Proposition 4 Food and Farm Investments in FY 25-26<\/span><\/h2>\n

The Governor\u2019s May Revise budget proposal included <\/span>Proposition 4<\/span><\/a> investments for a number of programs CalCAN has advocated for, including the Healthy Soils Program (HSP), the State Water Efficiency and Enhancement Program (SWEEP), and a <\/span>new regional equipment-sharing program<\/span><\/a>. More specifically, the Governor\u2019s proposal included the following investments in FY 25-26:<\/span><\/p>\n