State Budget to Address Safe Drinking Water Needs in California

Governor Gavin Newsom and legislative leadership negotiated a mechanism to address safe drinking water for all Californians, and it is included in the state budget. A continuous appropriation to ensure safe drinking water in future years is also provided within a budget trailer bill. Legislators are set to vote on the state budget this week in order to meet the June 15 constitutional deadline to pass a budget.
The budget agreement utilizes both Greenhouse Gas Reduction Fund (GGRF – funded via cap and trade) dollars and General Fund dollars to guarantee $130 million to provide clean drinking water for all Californians.
As an ardent advocate of a solution to address the safe drinking water crisis in California, Ag Council appreciates the governor’s commitment and the efforts of legislators to put together a budget package tackling this crucial issue plaguing low income and disadvantaged communities.
We urge legislators to pass the budget bill and the budget trailer bill because this is real money to address the lack of safe drinking water throughout the state.
Though the agreement does not include all of the elements Ag Council sought, we thank the governor and legislative leadership for working to ensure safe water for Californians who are desperately in need of a solution now.
The 2019-2020 budget bill contains the following:
- $100 million from the Greenhouse Gas Reduction Fund (GGRF) for Safe Drinking Water;
- $30 million General Fund for Safe Drinking Water; and
- $3.4 million General Fund for the State Water Resources Control Board for administrative costs.
Trailer bill accompanying the budget includes:
- 5 percent GGRF continuous appropriation beginning 2020-21 for Safe Drinking Water;
- Cap of $130 million for Safe Drinking Water;
- If 5 percent of GGRF falls below $130 million in a future budget year, a General Fund backstop is provided to safeguard the Safe Drinking Water Fund beginning in 2023-2024 with a 2030 sunset; and
- Creates the administrative framework of the Safe Drinking Water Program and Fund.
Ag Funding in the Cap & Trade Expenditure Plan to Lower Emissions
The 2019-2020 Cap & Trade Expenditure Plan includes vital incentives for agriculture to reduce greenhouse gas and mobile source emissions. The funding – supported by Ag Council and others – improves air quality and benefits human health in the communities our members live and work in everyday.
During the negotiations on the state budget last week, concern arose over a serious threat to eliminate much of the funding for agriculture in the Cap & Trade Expenditure Plan. Ag Council worked with CDFA Secretary Karen Ross, administration officials, and legislators to protect much of the ag community’s funding, and we thank our steadfast champions for their efforts to protect funding for the ag community.
The funds are critical to help incentivize stationary and mobile source emissions reductions in the agricultural sector. Ag Council thanks the numerous legislators who assist in securing this funding during the budget process.
Ag funding in the 2019-2020 Cap & Trade Expenditure Plan includes:
- $65 million for farmers to lower emissions by replacing and upgrading ag diesel engines for equipment such as tractors, harvesters, and heavy-duty trucks;
- $34 million for dairy manure methane reduction programs; and
- $28 million for the Healthy Soils program.
Please contact Ag Council at ph. (916) 443-4887 with any questions.