Governor Gavin Newsom has signed a series of bills aimed at accelerating critical infrastructure projects across California. This move is part of a broader effort to build a 100% clean electric grid, ensure safe drinking water, boost the state’s water supply, and modernize the transportation system. The legislation is designed to take full advantage of an unprecedented $180 billion in state, local, and federal infrastructure funds over the next decade. This funding is crucial for achieving California’s ambitious climate and clean energy goals while also creating up to 400,000 well-paying jobs.
The new laws streamline permitting processes, cut through bureaucratic red tape, and allow state agencies to use innovative project delivery methods. These measures are expected to maximize taxpayer dollars and speed up project timelines, all while ensuring appropriate environmental reviews and community engagement.
Governor Newsom also signed components of the 2023-24 state budget agreement, which includes $37.8 billion in total budgetary reserves—the largest in state history. This includes $22.3 billion in the Rainy Day Fund, a crucial buffer amid ongoing global economic uncertainty. The budget successfully closes a shortfall of more than $30 billion while preserving significant investments in public education, healthcare, climate action, homelessness, and other priorities.
“For decades, infrastructure projects critical to our future have stalled because of a pervasive mindset of ‘no.’ With this legislation, California is saying ‘yes’ to building the clean energy, safe drinking water, and transportation projects we need to deliver on our world-leading climate action. Now it’s time to roll up our sleeves and build California’s future,” said Governor Newsom.
Senate President pro Tempore Toni G. Atkins (D-San Diego) emphasized the dual challenge and opportunity presented by the current economic climate. “Thanks to the tireless dedication of our Senate Budget Chair and subcommittee chairs and our Senate Working Group on Infrastructure and Workforce Equity, and the partnership of our Assembly colleagues and Governor Newsom, we successfully met those goals. We have passed a responsible, equitable budget and finalized a legislative package on infrastructure that maintains California’s values on the environment and climate preparedness, while at the same time builds for our future and creates a place where working families can access quality jobs,” she said.
Assembly Speaker Robert Rivas (D-Salinas) highlighted the budget’s inclusivity and forward-thinking approach. “This budget is representative of all Californians and provides opportunity to those who need help the most. Despite economic headwinds, it sustains and protects our schools, working families, and more. And it keeps an eye on the future, by maintaining our historic reserves. The legislative package on infrastructure, as well, strikes a crucial balance: spurring future growth and good-paying jobs while defending our environment,” he stated.
The infrastructure package is particularly timely as California faces extreme weather events like fires, droughts, and floods. The fast-tracked projects will power homes and electric vehicles, store and deliver water, modernize transportation infrastructure, and create a 100% clean electric grid. With $180 billion in federal and state funding on the line, California is in a race against other states to cut pollution, generate clean energy, and conserve water.
The legislation also builds on efforts to reform the California Environmental Quality Act (CEQA), making it more effective for today’s needs while maintaining the state’s nation-leading environmental protections and community engagement. The package streamlines court battles after projects have passed environmental review, ensuring that mitigation and public processes are upheld.
The new laws will accelerate projects that capture and store enough water to supply millions of households and ramp up efforts to build wind, solar, battery storage, and electric transmission projects. The legislation includes methods to offer a streamlined process for project delivery, reducing project timeframes and costs. It also expedites court reviews to avoid long delays and advance projects without compromising environmental and government transparency benefits.
The budget and related budget-implementing legislation signed by the Governor include a wide range of bills covering various sectors such as early childcare and education, health, human services, developmental services, state government, cannabis, housing, employment, public safety, education finance, arts and music in schools, higher education, public resources, energy, transportation, taxation, environmental mitigation, and workforce development.
In addition to the infrastructure package, the California Air Resources Board (CARB) has approved the Advanced Clean Cars II rule, setting the state on a path to rapidly grow the zero-emission car, pickup truck, and SUV market. By 2035, 100% of new cars and light trucks sold in California will be zero-emission vehicles, including plug-in hybrid electric vehicles. This regulation aims to deliver cleaner air and massive reductions in climate-warming pollution.
The new regulation accelerates requirements for automakers to deliver an increasing number of zero-emission light-duty vehicles each year, starting with 35% in 2026 and reaching 100% by 2035. The rule also includes provisions to enhance equity in the transition to zero-emission vehicles, ensuring that all Californians benefit from cleaner air and reduced emissions.
Governor Newsom’s budget proposal for 2024-25 aims to maintain the state’s fiscal stability while preserving key investments in education, public safety, homelessness, mental health care reform, and climate action. The budget responsibly closes a projected $37.86 billion shortfall using some of the unprecedented budget reserves built up over the years and other tools.
Despite the economic challenges, California’s GDP remained strong in 2023, and the state’s revenues are projected to return to normal growth levels. The budget plan reflects $18.4 billion in total budgetary reserves, including $11.1 billion in the Rainy Day Fund, ensuring that the state remains on firm economic footing while continuing to tackle critical issues.
Source: Governor’s Office, California Legislature, California Air Resources Board
