The 2026-27 Budget: Proposed Zero-Emission Vehicle Incentive

Feb 24, 2026 - In July 2025, the President signed H.R. 1 —also known as the One Big Beautiful Bill Act —which eliminated these ZEV purchase incentives as of the end of September 2025. Since the passage of H.R. 1, some vehicle manufacturers have signaled that they expect to scale back their previously planned production of ZEVs.
https://lao.ca.gov/Publications/Report/5140

The 2026-27 Budget: California Public Utilities Commission’s Implementation of AB 1207

Feb 10, 2026 - To that end, utilities are required to consign most of these free allowances to auction and use the proceeds to provide rebates to consumer s, known as the “California Climate Credit. ” These rebates currently are provided to residential customers each year in April and October.
https://lao.ca.gov/Publications/Report/5120

The 2026-27 Budget: Proposed Elimination of State Environmental Positions

Feb 17, 2026 - As such, reducing positions and expenditures could mean that funds —at least in the near term —end up sitting unused in account balances rather than supporting the activities that fee-payers have paid the state to undertake.
https://lao.ca.gov/Publications/Report/5124

The 2026-27 Budget: Permitting Support at the State Water Resources Control Board

Mar 2, 2026 - To that end, the 2024-25 budget package included language requiring SWRCB to submit a report to the Legislature by January 2026 on (1)  the impacts of the Sackett decision on workload, permitting, and enforcement processes; (2)  the nature of any legal challenges to state regulatory authority; and (3)  any regulatory limitations it was experiencing under current statute.
https://lao.ca.gov/Publications/Report/5144

The 2026-27 Budget: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - As displayed in Figure 2, the administration proposes to use $615 million of the $750 million in additional revenues to support the following activities, thus leaving a projected GGRF fund balanceof$135 million at the end of 2026‑27: CalFire Backfill.
https://lao.ca.gov/Publications/Report/5114

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Moreover, should the amount of the tax credit that is claimed end up even larger than currently anticipated —as discussed above —the reductions to transportation funding would increase accordingly. We note that the state is already projected to face future transportation funding challenges due to existing trends and policies that increase zero ‑emission vehicle (ZEV) adoption, which in turn will reduce diesel and gasoline excise tax revenues.
https://lao.ca.gov/Publications/Report/5139

The Bay-Delta Plan and Voluntary Agreements: Ensuring Effective Legislative Oversight

Mar 18, 2026 - Two major water projects —the state ‑run SWP and the federally run CVP —operate pumps at the southern end of the Delta to move water into canals which convey it to the Central Valley, coastal regions, and Southern  California.
https://lao.ca.gov/Publications/Report/5163

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - To that end, we offer criteria the Legislature could use in reviewing these proposals. While the Legislature could select —and indeed may prefer —other criteria, the framework we suggest is intended to help differentiate proposals that address pressing, near ‑term needs from those that are potentially less urgent, even when the latter might advance important policy objectives.
https://lao.ca.gov/Publications/Report/5116