Environment and Natural Resources Publications

The 2020-21 Budget: Addressing Revenue Uncertainty in the 2020-21 Cap-and-Trade Expenditure Plan

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June 4, 2020 - The 2020-21 May Revision includes a $965 million Greenhouse Gas Reduction Fund (GGRF) discretionary expenditure plan, plus a budget provision to make spending contingent on the amount of revenue collected in 2020-21. In this post, we (1) discuss a few potential 2020-21 revenue scenarios, (2) summarize the Governor’s May Revision GGRF expenditure plan, and (3) identify key issues for the Legislature to consider as it develops a 2020-21 GGRF spending plan in a period of high revenue uncertainty.

Overview of Governor’s May Revision Proposals for Resources and Transportation Programs

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May 21, 2020 - Assembly Budget Subcommittee No. 3 On Resources and Transportation Hon. Richard Bloom, Chair

5/24/20: Updated proposed appropriations from Proposition 68 (2018).

Assessing California’s Climate Policies—Transportation

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March 4, 2020 - Presented to: Senate Environmental Quality Committee Hon. Benjamin Allen, Chair and Senate Transportation Committee Hon. Jim Beall, Chair

The 2020-21 Budget: California Public Utilities Commission

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February 27, 2020 - The Governor’s budget proposes $1.7 billion for the California Public Utilities Commission. In this post, we provide our recommendations on the proposed budget for the California LifeLine Program.

The 2020-21 Budget: Resources and Environmental Protection

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February 25, 2020 - In this report we assess several of the Governor's 2020-21 budget proposals in the natural resources and environmental protection program areas. This includes reviews of the Governor's proposals related to the Department of Toxic Substances Control, Department of Parks and Recreation, and the Department of Fish and Wildlife.

The 2020-21 Budget: Governor's Wildfire-Related Proposals

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February 21, 2020 - While wildfires have always been a natural part of California’s ecosystems, recent increases in the severity of wildfires and the adverse impacts on communities have increased the focus on the state’s ability to effectively prevent, mitigate, and respond to wildfire risks. This report has two parts. First, we assess the state’s approach to addressing wildfire risks in light of the complex challenges that make an efficient and effective approach difficult. Second, we evaluate the Governor’s various wildfire‑related budget proposals in the absence of having a statewide strategic wildfire plan.

The 2020-21 Budget: Climate Change Proposals

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February 18, 2020 - Presented to: Senate Budget and Fiscal Review Committee Hon. Holly J. Mitchell, Chair

The 2020-21 Budget: Climate Change Proposals

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February 13, 2020 - This report assesses the Governor’s major 2020-21 budget proposals related to climate change. The four proposals we evaluate are the Governor's (1) cap-and-trade expenditure plan ($965 million), (2) expanded climate adaptation research and technical assistance activities ($25 million), (3) new Climate Catalyst loan fund ($250 million), and (4) climate bond ($4.75 billion).

The 2020-21 Budget: Overview of the Governor's Budget

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January 13, 2020 - This report presents our office’s initial assessment of the Governor’s budget. We estimate the Governor had a $6 billion surplus to allocate to discretionary purposes in 2020-21. The Governor allocates most of the surplus toward one-time purposes, including maintaining a positive year-end balance in the state’s discretionary reserve. Under the administration’s estimates, total reserves would reach $20.5 billion at the end of 2020-21—this represents a $1.7 billion increase from the 2019-20 enacted level. California continues to enjoy a healthy fiscal situation. Despite its positive near-term picture, the budget’s multiyear outlook is subject to considerable uncertainty. In addition to describing the condition of the budget under the Governor’s proposal, this report discusses tools the Legislature can use to mitigate against these heightened risks.

January 20, 2020: Upon further review, one item included in the original version of Appendix Figure 3 on discretionary on health spending should not have been included (specfically, use of the Medi-Cal drug rebate fund to offset General Fund costs). Removing this item—which reduces General Fund spending—from the list of discretionary choices made in the Governor’s budget increases our calculation of the surplus to $6 billion. The document is updated to reflect these changes.

Update 1/24/20: Adjusted Judicial Branch items in Appendix Figure 1 to reflect ongoing spending.

Assessing Vulnerability of State Assets to Climate Change

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January 9, 2020 - This post summarizes the current efforts being undertaken by state departments to assess the vulnerability of state facilities to the future impacts of climate change. We find that most state agencies are only in the early stages of conducting such assessments, which are a critical first step of a multistep process of planning to reduce risks to state assets and public services. We provide a number of oversight questions the Legislature can use to monitor what progress is being made by individual state departments.

Assessing California’s Climate Policies—Electricity Generation

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January 6, 2020 - In this report, we assess the effects of the state’s major policies intended to reduce emissions from the generation of electricity.

Preparing for Rising Seas: How the State Can Help Support Local Coastal Adaptation Efforts

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December 10, 2019 - This report responds to increasing legislative interest in determining how the state can best prepare for the impacts of climate change, including sea‑level rise (SLR).

Also see this Summary Fact Sheet for the report

Background on Public Safety Power Shutoffs

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November 18, 2019 - Presented to: Senate Energy, Utilities, and Communications Committee

The 2019-20 Budget: California Spending Plan—Resources and Environmental Protection

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October 17, 2019 - The 2019-20 budget includes over $12 billion for the state’s natural resources and environmental protection programs. This post describes budgetary actions related to the annual cap-and-trade expenditure plan, support for a new safe and affordable drinking water program, funding for a variety of wildfire prevention and response activities, as well as other significant changes.

Allocating Utility Wildfire Costs: Options and Issues for Consideration

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June 21, 2019 - Recent catastrophic wildfires caused by utilities in California have caused tens of billions of dollars in property damage. Under current legal standards, these damages will directly lead to increased costs for utilities, which could be passed on to ratepayers. Moreover, the recognition of increased potential costs associated with wildfire risks has affected the credit markets, contributing to one investor owned utility (Pacific Gas and Electric) declaring bankruptcy, as well as credit downgrades for other utilities. These credit effects will make it more difficult and expensive for utilities to secure financing for capital investments, which will also increase costs for ratepayers, as well as potentially affect other policy goals. The goal of this report is to be a resource for policymakers and the public seeking to better understand the complicated issues surrounding utilities and the costs associated with wildfire risks.