Gov. Newsom Releases Budget Revision & Increases Funding for Ag in the Cap & Trade Investment Plan
More advocacy work needed to support key programs
Governor Gavin Newsom released the May budget revision today and held a press conference providing legislators and the public further details about his 2019-2019 state budget proposal.
Along with funding for education, health care, housing and other state priorities, the budget includes the governor’s 2019-2020 Cap and Trade Investment Plan. Agriculture receives incentive dollars through the investment plan to help lower emissions and improve air quality, and Ag Council advocates in support of this crucial funding.
Ag Diesel Engine Replacement Program
In the proposal released today, the ag diesel engine replacement program received $65 million more in the budget revision and, when combined with the existing $25 million, total funding for this program is $90 million in the governor’s 2019-2020 budget plan. The ag diesel engine replacement program is known as the FARMER program and operates at the California Air Resources Board (CARB) with funding provided to the regional air boards where grant decisions are made.
Ag Council supports the FARMER program given that it is providing grants to assist farmers in the purchase of cleaner burning tractors, trucks, harvesters and other equipment on farms in order to improve air quality and benefit human health. The FARMER program has proven to be effective in reducing emissions and it is oversubscribed with applications.
The governor’s budget revision is now under review by the Legislature, and while our association very much appreciates the boost in funding to $90 million, more must be done. Ag Council supports raising the amount to $250 million in incentives to replace ag diesel engines. As the Legislature deliberates the budget, we will continue to pursue additional funding for ag diesel engine replacement.
Manure Methane Reduction Funding
With regard to dairies, Governor Newsom added $10 million to the existing $25 million in his budget proposal for manure methane reduction projects funded via the California Department of Food and Agriculture (CDFA) for a total of $35 million in his 2019-2020 Cap and Trade Investment Plan. Again, the plan has not yet been approved by the Legislature and legislators are in the budget decision-making process. The $35 million proposed allocation is well below the $99 million requested by Ag Council and others for projects to reduce manure methane emissions on dairies.
California dairies are global leaders in the reduction of greenhouse gas emissions. State incentive dollars have helped dairies slash methane emissions and meet significant air quality goals, per the direction of California’s Short-Lived Climate Pollutants Strategy (SB 1383 – signed into law in 2016). We want this strong partnership to remain intact and continue to support $99 million for manure methane reduction projects in the legislative process.
Healthy Soils
Governor Newsom’s Cap and Trade Investment Plan augments funding for the Healthy Soils grant program at CDFA by an additional $10 million in the budget revision for a total of $28 million in his 2019-2020 budget proposal when combined with the current $20 million. This CDFA program is providing grants to farmers for projects to sequester carbon and reduce greenhouse gases, such as cover cropping, mulching, compost application, and reduced tillage.
Safe & Affordable Drinking Water Fund
Governor Newsom’s May budget revision maintains his ongoing commitment to provide a solution to the drinking water crisis in California, which Ag Council supports. The language in the May revision refers back to the January budget stating:
The Governor’s Budget also included $4.9 million General Fund to support initial steps towards implementation of the Safe and Affordable Drinking Water Program and statutory changes to establish ongoing sustainable funding to assist disadvantaged communities in paying for the costs of obtaining access to safe and affordable drinking water.
The May revision further affirms Governor Newsom’s steadfast support to address the lack of safe drinking water in California. The budget language states:
The Administration remains committed to working in collaboration with the Legislature and stakeholders on a comprehensive package that includes a sustainable and reliable source of funding to support safe and affordable drinking water for all Californians.
With respect to safe drinking water, Governor Newsom said during his budget revision press conference, “We are going to get a water deal.” He later continued when asked about the issue by reporters, “I’m not consumed by process. I’m consumed by outcome.” Ag Council agrees and thanks the governor for his dedication to solving the drinking water crisis this year.
Though much work remains to be done, Ag Council is encouraged by the governor’s comments and the ongoing prioritization of safe drinking water in the May revision. As budget and policy discussions continue, Ag Council remains actively engaged with our elected leaders and regulatory officials on this important issue.