May 28, 2026 · Budget Sub2 · 2,132 words · 13 speakers · 59 segments
Thank you. The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy will come to order. Let's establish a quorum. Senators Reyes?
Present.
Reyes, present. Senator Blakespeare?
Present.
Blakespeare, present. Senator Choi?
Yeah.
Senator Choi here. Senator McNerney?
Yep.
McNerney here. Thank you. We have a quorum. For today's hearing, all items are vote only. We will begin with public comment on these issues and then move to the vote only calendar. The issues we are voting on today have been discussed in several subcommittee hearings over the past couple of months. We have heard and appreciate the feedback from the members of the public. The actions we will be taking represent the Senate's budget plan. This is a tough budget year, and we have to make some very difficult decisions. I look forward to continuing conversations with the administration and Assembly in a collaborative and thoughtful manner as we move towards a final budget agreement in the next few weeks. So we're going to begin with public comment. We ask that you limit your comments to 30 seconds. For members of the public who wish to comment, please begin by stating your name and your organization. First witness, welcome.
Good morning. Julia Hall with the Association of California Water Agencies. I just want to provide support for a few items that were listed here today. First, I want to provide strong support for the $25 million for the Healthy Rivers and Landscapes. We really appreciate the recommendation to support that funding moving forward. This is providing essential funding for supporting habitat and water supply projects that are already helping with drought resiliency for the environment, farms, and people. Second, I want to provide support for the recommendation to reject the special fund position cuts, especially at CDFW and the State Water Board. These are critical positions that provide really important functions for the state, And they're also paid for by the fees paid by public water agencies. So we really appreciate that proposal. And third, we want to provide support for the redistribution of the Proposition 1 funding. As you stated, in a difficult year, it's great to see some more money going towards these natural resources. Thank you.
Thank you.
Good morning. Chris Anderson, California Chamber of Commerce. In the interest of brevity, just going to echo the comments of ACWA with regards to the $25 million in contingent funding for the implementation of the Healthy Rivers and Landscapes Program. and we're certainly appreciative of that.
Thank you. Thank you.
Good morning, Madam Chair, members of the committee. Felipe Fuentes here on behalf of the Associated General Contractors of California. We're a statewide association of general contractors that build all of your critical and valuable infrastructure, and we want to applaud the staff and urge you to support their recommendation on item number 37 in rejecting the Sustainable Aviation Fuel Tax Credit and the Governor's May revision. As staff points out, and we have heard now from many examples, it would cost our roads and our transportation network a tremendous amount of money, at least $165 million in its first year, and much more after that, that would jeopardize the network. So with that, thank you so much.
Thank you.
Good morning. I'm Griselda Chavez on behalf of the California Association of Local Conservation Corps. We'd like to offer, once again, our strong support for the appropriation of $229,000 in Prop 68 funds as grants to local cores. And these funds will enable the expansion of eight of our existing Prop 68 projects, as well as one-interred comments made in previous hearings and express support for the fiscal year Prop 4 appropriation of the $12 million for demonstrated job projects. And lastly, on behalf of CalSTAR and EFCA, we would like to thank the committee for the commitment to Tier 2 discretionary funding. and we ask that there be reconsideration of the rejection of the light duty incentive program and urge the legislature to continue working with the Governor Office to develop an agreeable proposal Thank you Thank you
Good morning. Good afternoon. My name is Michael Jacobson. I'm for the CIRCO and for the Cadamo offshore wind project.
I just want to express my support and thank the committee and chair for the appropriation last year of $4 million, greatly supported and needed. We are asking this year for $35 million, which is a really important step. And I wanted to just put something in front of you, a numerical equation. We talk about why we do these things and why do we spend money on offshore wind when all these things are going on. Well, we have strange times. This is a project in state waters, and we have the unique opportunity to take forward California energy policy, except for these or aside of these complicated situations. So my answer to this question I will put forward later is eight days. or less than eight days, that's what it would take for the five leases to produce enough power that would regenerate the money in ratepayer cost savings for the $35 million that we're asking for. So less than eight days. So with that, I just want to thank you all and thank you for your time, and we hope that you will support the funding asked by the state building trades. Thank you.
Thank you.
Good morning, Chairs and Members. Chris Nielsen on behalf of the World Resources Institute. appreciate staff's recommendation to reject the governor's proposal, proposed sustainable aviation fuel. As we've seen, the world has changed since January when it was proposed originally. We've now seen the federal credit almost double. We've seen the conflict in the Middle East, which has caused refining margins to increase. I think the evidence suggests that this proposal really is no longer needed, and so we appreciate your rejection today. Thank you.
Thank you.
And thank you, Madam Chair. Mark Fenstermaker for Earthjustice, echoing many of the comments of the previous speaker, appreciating staff's recommendation to reject the SAF incentive. I would just add that Earthjustice is concerned overall about the environmental benefits that come from SAF, and then particularly the approach here that may send a lot of this funding to refineries that are not even in California. Thank you.
Thank you.
Sorry, Griselda here again. Good morning. On behalf of the Breast Candidate Prevention Partners, we wanted to support issue 172 for the Safer Consumer Products Program as its important work to enforce AB 347, AB 2525, and SB 1266. And on behalf of Midpen and the California Habitat Conservation Program, yes, on issue 82, I just wanted to appreciate the staff's recommendation and reject the elimination of vacant staff at CDFW. Thank you.
Thank you.
Thank you, Madam Chair. Jackie, on behalf of the California Fuels Convenience Alliance, I also want to add our support for issue 37, the recommendation of the governor's staff proposal. Really appreciate staff's analysis recommendation there, and we continue to add our continued concerns that such a proposal could increase gas and diesel prices for Californians. Thank you.
Thank you. Anyone else want to offer public comment? Seeing none, I'd like to turn it now to the dais. comments from my colleagues on our last hearing before we take our votes. Very good. All right, so we're going to move on now to the vote-only calendar. The first group of votes will be on the motion to approve the staff recommendations for issues 2, 5 through 10, 12, 14, 17 to 30, 32 to 37, 39 to 69, 71 to 74. 76 to 80, 83 to 90, 99, 100, 103, 106, 107, 109, 110, 112, 113 to 115, 120 to 127, 129, 130 to 132 134 135 137 to 141 143 149 150 159 I sorry 156 to 159 161 162 163 167 170 171 173 to 176 180 to 182 184 to 190 195 196 198 to 200 and 202 I can make a motion. And these are part of Part A. Thank you, Senator Choi, for that motion. Would you please take the roll? Reyes.
Aye.
Reyes, aye. Blakespeare.
Aye.
Blakespeare, aye. Choi.
No.
Yeah. Aye. Choi, aye. McNerney.
Aye.
I'm accustomed to it. McNerney, aye. Motion is approved with a vote of 4-0, and those budget items are out. Next is Part A The next items are Item number 11 15 31 70 81 96 97 98 102 119, 145, 168, 178, 193, and 194. Do I have a motion to approve staff recommendations for those issues? I'll give a motion. Senator McNerney has moved. Please take the roll. Reyes.
Aye.
Reyes, aye. Blakespeare.
Aye.
Blakespeare, aye. Choi.
Aye.
No. No. Choi, no. Yes. Is it supposed to be no? Yes. Troy, no. McNerney?
Aye.
McNerney, aye. That motion passes. It is approved for the vote of 3 to 1. And the last group is items 1, 3, 4, 13, 16, 38, 75, 82, 91 to 95, 101, 104, 105, 108, 111, 116 to 118, 128, 133, 136, 142, 144, 146 to 148, 151 to 155, 160, 164 to 166, 169, 172, 177, 179, 183, 191, 192, 197, and 201. Do I have a motion to approve the staff recommendations on these issues? I'll move it. That's been moved by Senator McNerney. Please take the roll. Senators Reyes?
Aye.
Reyes, aye. Blakespeare?
Aye.
Blakespeare, aye. Choi?
No vote.
Choi, no vote. McNerney?
Aye.
McNerney, aye. That motion has been approved pursuant to the staff recommendation on a vote of 3-0. We will now move to Part B. And before we take that vote, I would like to note that today the California Air Resources Board, and probably as we speak, is meeting to discuss and vote on the proposed amendments to the Cap and Invest Program. I remain concerned about the potential implications of the proposed amendments. Particularly, I still fail to see the rationale for significantly cutting California's public investments while providing billions of dollars in new funding to industrial emitters through a mechanism with limited oversight no direction from the legislature and no documented benefits to the consumer affordability Because of the potential drastic impacts to the Greenhouse Gas Reduction Fund, the Senate budget plan that we are voting on today withholds all GGRF appropriations, including continuous appropriations, until specified conditions are met. A deal is a deal. If the very basis on which we negotiated extension of this program last year has vastly shifted, we need to revisit the GGRF funding framework and ensure legislative priorities are prioritized and key transit, affordable housing, air quality and safe drinking water programs are not zeroed out. I look forward to working with the Assembly and the administration on maintaining the deal reached last year. And now we begin part B. On the issues 2 through 5, 8, 10 to 13, 16, 22, 31, 32, 35, 37, 38, 40 to 50, 53, to 59. Do I have a motion? Thank you Senator Choi. Please take the roll. Senators Reyes. Aye. Reyes aye. Blakespeare. Aye. Blakespeare aye. Choi. Aye. Choi aye. McNerney. Aye. McNerney aye. That motion is approved on a four to zero vote. On Issues 6, 7, 9, 14, 15, 17, 23, 24, 26, 29, 30, 33, 39, 52, and 61. Do I have a motion? I'll move it. Thank you, Senator McNerney. Would you please take the roll? Senators Reyes.
Aye.
Reyes, aye. Blakespeare.
Aye.
Blakespeare, aye. Choi? No. Choi, no. McNerney? Aye. McNerney, aye. That motion is approved. Three to zero. Three to one. And on the last group of issues, A, 18, I'm sorry, 1, 18 to 21, 25, 27, 28, 34, 36, 51, 60, and 62. Do I have a motion? I'll move it. Thank you. That motion has been made by Senator McNerney. Please take the roll. Senators Reyes.
Aye.
Reyes, aye. Blakespeare.
Aye.
Blakespeare, aye. Choi. McNerney. Choi not voting. McNerney. Aye. McNerney, aye. That motion is approved 3-0. Well, I want to thank all the individuals who participated in public testimony today and throughout the entire process. I do want to thank the LAO and Department of Finance for the invaluable information and testimony you provided during all of these hearings. For those who were not able to testify today but wish to, please submit your comments or suggestions in writing to the Budget and Fiscal Review Committee or visit our website. Your comments and suggestions are important to us, and we want to include your testimony in the official hearing records. I want to thank you and we appreciate your participation. Thank you to everyone for your patience and your cooperation. We have concluded the agenda for today's hearing. Senate Budget Subcommittee 2 is adjourned. Thank you.