California Governor Gavin Newsom calls his proposed 2022-2023 state spending a “California Blueprint” with $286.4 billion budgeted for short-term relief and investing in long-term plans focusing on five priorities: COVID-19, climate change, homelessness, cost-of-living, and safe streets. The budget proposal allocates close to $20 billion for agriculture, incentives to support a ban on sales of combustion engines, transportation initiatives and supply chain issues.
Climate Smart Agriculture
Last year’s budget included $1.1 billion ($863 million from the General Fund and $238 million from special funds) one time over two years in smart agriculture sectors. The 2022-2023 includes $417 million for the second year of that investment to support farmers and ranchers.
Areas of significant investment:
- Funding Agricultural Replacement Measures for Emission Reductions Program (FARMER) — $150 million to provide funds to replace agricultural equipment with newer, more economical models.
- Healthy Soils Programs — $85 million to that provides grants for soil carbon sequestration on farms.
- Livestock Reduction — $48 million for livestock methane reduction programs.
- Climate Catalyst Fund — $25 million to supports Climate Smart Agriculture loans.
- Technical Assistance Grants — $22 million for technical assistance grants to develop conservation, carbon sequestration, and transition to organic plans.
- Pollinator Habitat Program — $15 million to improve Honey Bee population.
Zero-Emission Vehicles (ZEV)
The budget adds an additional $6.1 billion ($3.5 billion from the General Fund, $1.5 billion from Proposition 98, $676 million from the Greenhouse Gas Reduction Fund (GGRF), and $383 million from Federal Funds) onto the investment from the 2021 budget for a total of $10 billion for six years.
Transportation
In addition to ZEV funding, the budget includes $9.1 billion ($4.25 billion from the Bonds fund and $4.9 billion from the General Fund) over two years for transportation initiatives.
Areas of significant investment:
- Active Transportation — $750 million (General Fund) to improve active transportation networks, support carbon-free transportation options, and pay for the Active Transportation Project, the Reconnecting Communities: Highways to Boulevards Pilot Program, and safety programs for pedestrians and cyclists.
- High-Speed Transit — $4.2 billion (Proposition 1A bond funds) for High-Speed Rail, $3.25 billion (General Fund) for state, regional, and local rail and transit projects, and $500 million (General Fund) to address rail safety.
- Climate Adaptation — $400 million (General Fund) for climate adaptation projects targeting resiliency and mitigating infrastructure risk.
Supply Chain and Port Infrastructure
The budget contains $2.3 billion to invest in the supply chain including $1.2 billion for port, freight and goods movement infrastructure, and $1.1 billion for training, zero-emission equipment (ZEE), and infrastructure. This funding can also assistance the Emerging Projects Agreement between the U.S. Department of Transportation and the California Transportation Agency along with other programs available through the Infrastructure Investment and Jobs Act.
Significant General Fund Investment:
- Port Infrastructure and Goods Movement — $1.2 billion for projects to improve goods movement and capacity including expanding railyards, new bridges, and zero-emission projects.
- Zero-Emission Equipment and Infrastructure — $875 million for ZEE, ZEV vehicles (short-haul drayage trucks) and infrastructure.
- Training — $110 million to create a training campus to assistance workforce development and utilization of ZE technologies.
- Commercial Driver’s Licenses — $40 million to increase capacity to issue Commercial Driver’s License.
- Operation and Process Improvements — $30 million for the Governor’s Office of Business and Economic Development to assist operational and process improvements (data interconnectivity, cargo movement, congestion, and supply chain efficiency) at ports.
