Last month, Governor Newsom’s office released its May Budget Revise that proposed various cuts, deferrals, and extensions of pivotal programs to try to close an estimated shortfall of $12 billion to balance the state’s budget. CEJA Action, writing on behalf of a network of advocacy groups, responded with a press release on its failure to deliver on the environmental justice priorities that frontline communities have long called for.
The legislature has since passed their two party budget deal. Here is what’s changed since the May Budget Revise and how it impacts environmental justice, broken into four issue areas.
Cap and Trade Program
What happened?
In positive news, the Legislature has rejected the Governor’s proposal to divert billions from the Greenhouse Gas Reduction Fund (GGRF) to offset CAL FIRE’s budget, instead capping the shift at $500 million for the next two years and rejecting it entirely in future years. The Legislature was also clear that the cap and trade reauthorization conversation needs to happen in the policy process.
Unfortunately, California’s climate goals are still threatened by GGRF funds being redirected to cover General Fund obligations even if the cap is reduced to $500 million. Cal Fire can be funded through the broader state budget without sacrificing critical investments in clean air, public transit, clean energy, and community resilience.
Why is this important to EJ communities?
Our communities have been clear: any extension to Cap-and-Trade must close industry loopholes, protect local air quality, and ensure that investments benefit communities most impacted by pollution and climate change. We support the decision to reduce the CAL FIRE allocation and preserve GGRF’s ability to deliver real investments for frontline communities. We welcome the cap and trade reauthorization returning to the policy process, as this allows for greater transparency and accountability.
Climate Superfund Act
What happened?
The budget deal does not include any mention of the Climate Superfund Act. This is a striking oversight, given that California faces a projected $12 billion budget deficit that could be elegantly addressed by making climate polluters pay for the damage that they’ve caused our state. The absence of this path demonstrates that leaders are still not seriously considering this policy as a means to address our budget shortfall and likely means that Californians will continue to foot the bill through our taxpayer dollars and the threats absorbed to our public health and climate impacts.
Why is this important to EJ communities?
The budget deal’s silence on truly holding polluters accountable and setting up a much needed climate superfund leaving is incredibly disappointing. We are leaving resources to invest in community resilience and public health on the table. Instead, California leaders chose to continue balancing the bad budget on the backs of vulnerable communities and allowing oil companies to continue to amass record breaking profits.
Permitting Reform
What happened?
The latest budget update leaves the future of permitting reform unclear, with no disclosed changes to CEQA and infrastructure projects. Instead, lawmakers have vaguely referenced folding two major bills into a trailer bill, which will make the process far less transparent and greatly limit public input on matters that need it most.
Why is this important to EJ communities?
CEJA has long been an advocate of the California Environmental Quality Act (CEQA), California’s bedrock environmental law and a key access point for communities to participate in decision-making about developments that could bring toxic pollution to their doorsteps. Governor Newsom’s suggestion that he supports undermining CEQA in the name of removing “barriers” to housing is a gross misrepresentation of circumstances on the ground in California. Frontline environmental justice communities are not barriers. We are living at the intersection of both the climate and housing crises and deserve to have a seat at the table for decisions that impact our neighborhoods and health. Real solutions to California’s housing crisis must include building affordable homes that advance public health and prevent gentrification and displacement. We reject the false choice that tells us we can only have either our housing or our health.
Energy Affordability
What happened?
The updated budget is a double-edged sword for California’s energy affordability crisis. On the positive side, it confirms the move in the May Revise to provide funding to the California Public Utilities Commission (CPUC) to support compliance and safety standards for large-scale battery energy storage systems (BESS). (Incidentally, CEJA is hosting a free webinar tomorrow to further break down the promising economic and public health advantages of BESS over gas-fired power plants.)
Why is this important to EJ communities?
We need lawmakers to radically boost its investment in community energy and storage programs that improve grid reliability and lower utility rates. We desperately need to reduce our reliance on fossil fuels in order to achieve a sustainable future and defend frontline communities of color who are already bearing the brunt of the climate crisis, and our lawmakers have not yet met this call with the urgency it requires.