Climate change.

The California Senate Budget Committee proposes comprehensive changes to state energy and transportation programs through amendments affecting certification fees, clean vehicle initiatives, and grid support mechanisms. The legislation modifies the Energy Commission chairperson's compensation structure, adding 5% annual salary increases for fiscal years 2025-2028, while restructuring facility certification fees to require a $750,000 nonrefundable deposit plus actual processing costs.

The bill expands the Clean Transportation Program's scope by removing restrictions on block grant administration and broadening funding eligibility for zero-emission vehicle infrastructure. It authorizes the Air Resources Board to implement new fee schedules for vehicle and engine deficiencies, with proceeds directed to the Certification and Compliance Fund. The legislation also extends the Energy Commission's authority to award noncompetitive follow-on funding for qualifying projects through January 2028.

For grid reliability initiatives, the bill clarifies that only facilities constructed and owned by the Department of Water Resources must limit fossil fuel operations to extreme events. It appropriates $132.17 million from the Air Pollution Control Fund for zero-emission truck and bus vouchers in 2025-26, with provisions for disadvantaged communities and small businesses. The measure also permits use of additional legislative appropriations for demand-side grid support programs, including regulations development and third-party implementation contracts.

The amendments maintain existing funding levels for local air districts participating in clean vehicle programs through specified equity transportation initiatives. All changes take effect immediately as budget-related appropriations, with various provisions for fund encumbrance and liquidation extending through 2029.