Governor Gavin Newsom has signed a series of bills aimed at accelerating critical infrastructure projects across California. This move is part of a broader effort to build a 100% clean electricity grid, ensure safe drinking water, boost the state’s water supply and modernize the transportation system. The legislation is designed to take full advantage of an unprecedented $180 billion in state, local and federal infrastructure funds over the next decade. This funding is critical to achieving California’s ambitious climate and clean energy goals and creating up to 400,000 good-paying jobs.
The new laws streamline permitting processes, cut red tape, and allow government agencies to use innovative methods to implement projects. These measures are expected to maximize taxpayer dollars and accelerate project timelines, while ensuring appropriate environmental reviews and community involvement.
Governor Newsom also signed off on parts of the 2023-24 state budget deal, which includes $37.8 billion in total budget reserves—the largest in state history. This includes $22.3 billion in the Rainy Day Fund, a critical buffer amid continued global economic uncertainty. The budget successfully closes a more than $30 billion deficit while maintaining significant investments in public education, health care, climate action, homelessness and other priorities.
“For decades, infrastructure projects critical to our future have been stalled due to a pervasive ‘no’ mentality. With this legislation, California is saying ‘yes’ to building the clean energy, safe drinking water and transportation projects we need to deliver our industry-leading climate action Now is the time to roll up our sleeves and build California’s future,” said Governor Newsom.
Senate President pro Tempore Toni G. Atkins (D-San Diego) emphasized the dual challenges and opportunities presented by the current economic climate. “Thanks to the tireless dedication of our Senate Budget Chairman and subcommittee chairs and our Senate Working Group on Infrastructure and Labor Equity, and the partnership of our colleagues in the Assembly and Governor Newsom, we have successfully achieved these goals. We passed a responsible, equitable budget and completed an infrastructure legislative package that upholds California’s environmental and climate preparedness values while building our future and creating a place where working families have access to quality jobs,” she said.
Assembly Speaker Robert Rivas (D-Salinas) emphasized the budget’s inclusiveness and progressive approach. “This budget is representative of all Californians and provides opportunities to those who need the help most. Despite economic downturns, it supports and protects our schools, working families and more. And it keeps an eye on the future by preserving our historical reserves. The infrastructure legislative package also strikes a crucial balance: stimulating future growth and good-paying jobs while defending our environment,” he said.
The infrastructure package is particularly timely because California is dealing with extreme weather events such as fires, droughts and floods. The accelerated projects will power homes and electric vehicles, store and deliver water, modernize transportation infrastructure and create a 100% clean electricity grid. With $180 billion in federal and state funding at stake, California is in a race against other states to reduce pollution, generate clean energy and conserve water.
The legislation also builds on efforts to reform the California Environmental Quality Act (CEQA), making it more effective for today’s needs while maintaining industry-leading environmental protections and community engagement. The package streamlines litigation after projects pass environmental review, and ensures that mitigation and public processes are maintained.
The new laws will accelerate projects that capture and store enough water to supply millions of homes and ramp up efforts to build wind, solar, battery storage and electricity transmission projects. The legislation includes methods to provide a streamlined process for project delivery, reducing project lead times and costs. It also expedites judicial review to avoid lengthy delays and move projects forward without compromising environmental benefits and government transparency.
The budget and related budget implementing legislation signed by the Governor includes a wide range of bills covering various sectors, such as child care and early childhood education, health care, human services, developmental services, state government, cannabis, housing, employment, public safety, education funding, arts and music in schools, higher education, public funds, energy, transportation, taxation, environmental mitigation, and workforce development.
In addition to the infrastructure package, the California Air Resources Board (CARB) passed the Advanced Clean Cars II rule, setting the state on a path to rapidly growing the market for zero-emission cars, pickup trucks and SUVs. By 2035, 100 percent of new cars and light trucks sold in California will be zero-emission vehicles, including plug-in hybrid electric vehicles. This regulation is aimed at cleaner air and dramatic reductions in climate-warming pollution.
The new regulations accelerate requirements for automakers to deliver increasing numbers of zero-emission light-duty vehicles each year, starting with 35% in 2026 and reaching 100% by 2035. The regulations also include provisions to improve equity in the transition to zero-emission vehicles so that all Californians benefit from cleaner air and reduced emissions.
Governor Newsom’s 2024-25 budget proposal aims to maintain the state’s fiscal stability while preserving critical investments in education, public safety, homelessness, mental health reform, and climate action. The budget responsibly closes a $37.86 billion deficit, using some of the unprecedented fiscal reserves built up over the years and other tools.
Despite the economic challenges, California’s GDP remained strong in 2023 and the state’s revenues are expected to return to normal growth levels. The budget plan reflects $18.4 billion in total budget reserves, including $11.1 billion in the Rainy Day Fund, ensuring the state remains on solid economic footing while addressing critical issues.
Source: Governor’s Office, California Legislature, California Air Resources Board
