Major Changes Included in the May Revision

Proposition 1B Air Quality Investments

• The Governor’s May Revision proposes spending $111 million in Proposition 1B bond funds to implement the Trade Corridors Emission Reduction Incentive Program.
• This funding will go towards the upgrade of old, high-emitting trucks at ports and intermodal rail yards, electrification of piers, replacement of older switch engines and other locomotives with new ultra-low emissions models, and replacement of existing diesel engines on harbor craft with new, cleaner engines.
• In administering the program, the Air Resources Board will give priority to projects that provide the greatest lifetime emissions reduction in each corridor for each state dollar invested.

Carl Moyer Program Accountability

• In the Governor’s May Revise, the Air Resources Board proposes to redirect $900,000 of its existing funding to add 6 permanent positions and to reestablish 2 expiring positions to expand the accountability and oversight of the Carl Moyer Air Quality Incentive Program.

Items Largely Unchanged from the Governor’s 2007 January Budget

Global Warming Solutions Act

• $35.8 to implement the landmark California Global Warming Solutions Act, which will achieve emission reductions through a balanced approach of regulatory and market-based programs.
• $3.5 million for Emissions Inventory Development and Mandatory Reporting, $1.8 million for the Emission Reduction Scoping Plan, $12.0 million for Alternative and Market-Based Compliance Measures, $7.1 million for Regulatory Emission Reduction Measures, $7.4 million for Scientific and Economic Analysis, $4.0 million for Program Oversight and Coordination.
• $1.3 million and 2.9 positions for the PUC greenhouse gas emissions reduction efforts. These resources will enable the PUC to conduct climate change proceedings to implement emission reduction strategies, evaluate various electric and natural gas sector greenhouse gas emission cap scenarios, and develop protocols to measure and verify actual emissions reductions.

Low-Emission School Buses

• $96.5 million Highway Safety, Traffic Reduction, Air Quality, and Port Security Fund and 2.9 positions to replace pre-1987 school buses and retrofit old diesel school buses.
  • This funding will replace 535 pre-1987 school buses manufactured prior to the implementation of diesel emission standards and retrofit approximately 1,500 school buses. Diesel retrofit technology reduces emissions by 85 percent to keep our children healthy.

Clean Water

• $1.1 billion for Proposition 84, including $111.4 million for the State Water Resources Control Board for water quality programs.
  • Proposition 84, "The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006," approved by California's electorate in November 2006, provides $5.4 billion to address water supply needs and protect natural resources.

• $75.7 million for the State Water Pollution Control Revolving Fund Program, $6.2 million for the Agricultural Water Quality Grant Program, $14.6 million for the Urban Storm Water Grant Program, $8.8 million for the Clean Beaches Grant Program, $6.1 million for basin and land use planning activities.
• The Budget also proposes funding for Parks and Recreation ($20 million for State Parks), State Coastal Conservancy (Over $115 million for projects in the Santa Ana River Parkway, The San Francisco Bay Conservancy Program, Monterey Bay, San Diego Bay, and the Ocean Protection Fund), State Conservancies ($83 million), Tahoe Conservancy ($28 million), Fish and Game ($53 million), and $35 million to continue the Colorado River Quantification Settlement Agreement.

Flood Protection

• $629.9 million, mainly from the Strategic Growth Plan bond funds, to allow the continued repair of critical levee erosion sites, provide subventions to help local governments protect their communities from flooding, and continue development of the state's strategic flood management capability.
  • Proposition 1E, approved by the voters in the November 2006 election as part of Governor Schwarzenegger’s Strategic Growth Plan, authorized $4.1 billion for levee repair and other flood control system improvements.

• As part of the Administration's effort to eliminate the state's operating deficit, and consistent with the Governor's announced intention in March 2006, an additional $200 million in Proposition 1E funds will reimburse the General Fund for critical levee repairs.

Brownfields

• $3.1 million Cleanup and Abatement Account for the Water Board to accelerate the cleanup of approximately 750 additional brownfield sites.
• $219,000 special funds for the Department of Toxic Substances Control to implement recent legislation that provides incentives for brownfield cleanups.

Department of General Services

• $614,000 for the Office of Fleet Administration to obtain technology enabling it to effectively record, manage, and access critical information about California’s statewide inventory of vehicles.
• $428,000 for the Department of General Services to implement requirements of executive orders to reduce grid-based energy purchases by 20 percent.
• $2,970,000 to fund a private consultant to supplement Department of General Services staff in aggressively pursuing the U.S. Green Building Council's “Leadership in Energy and Environmental Design” standards for state buildings.

Green Buildings

• $3.4 million (Service Revolving Fund) and 4.7 positions to implement required energy savings programs and projects as specified in the Governor's Executive Order S-20-04 and the accompanying Green Building Action Plan.
  • These resources will enable the state to systematically reduce state energy consumption and save millions of dollars by taking all cost-effective measures described in the Green Building Action Plan to retrofit, build, and operate the most energy and resource efficient buildings.

Helios Project

• $30 million in lease revenue bonds for the Helios Project, a groundbreaking initiative by the University of California's Lawrence Berkeley National Laboratory to create sustainable, carbon-neutral sources of energy. The Helios Project will produce the next generation of super-efficient solar energy technology that will help reduce greenhouse gases and our oil dependency.

Hydrogen Highway

• $6.0 million from the Motor Vehicle Account for the Air Resources Board to continue development of the Hydrogen Highway.

Energy Biosciences Institute

• $40 million for the University of California to implement BP's $500 million Energy Biosciences Institute grant, focused on long-term research into the production of alternative fuels. UC was the winner of a grant competition among the world’s foremost research institutions for this project.

Science and Innovation

• $19.8 million to the California Institutes for Science and Innovation, a multidisciplinary research effort to engage the University of California's research faculty directly with hundreds of California companies in attacking large-scale issues critical to the state's economy and its citizens' quality of life.
• $5 million for UC to compete for National Science Foundation’s $200 million Petascale supercomputer facility.

Solar Power

• $2.5 million and 2.9 positions for the PUC to implement the California Solar Initiative. This proposal will provide necessary staff for PUC proceedings, enable the PUC to develop a pricing structure that provides an incentive to generate solar energy during peak-demand hours, and fund an independent program evaluation.