Statement: Gov. Newsom’s proposed budget slashes clean air, clean energy programs

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Also proposes first-ever cuts to oil and gas subsidies

SACRAMENTO, Calif. — Facing a $37.9 billion deficit, Gov. Gavin Newsom on Tuesday unveiled his 2024-2025 budget, which proposes cutting or delaying billions in funding for programs that would stave off the worst impacts of the climate crisis.

The proposed budget would: 

  • Cut $4 billion from the state’s five-year climate budget package
  • Delay the zero-emission vehicle package by more than two years, which means cuts this year and reduced anticipated funding in later years. 
  • Cut $600 million from this year’s clean zero-emission vehicle programs including Clean Cars 4 All, as well as clean trucks, clean transit buses and lawn equipment. 
  • Cut $200 million from the residential solar power and storage program, when we need more investment in rooftop solar, not less.

The proposal also delays decisions over whether to commit enough resources to implement recently passed climate legislation, putting those actions into question. 

For the first time, the governor has proposed some cuts to oil and gas subsidies, which would save $22 million this year. The state could recoup an additional $4 billion or so if it ended the Water’s Edge Election tax credit. With the governor’s proposal completed, the state legislature will now work to develop its version. 

 

In response, Environment California State Director Laura Deehan issued the following statement:

“It’s never easy to be a climate champion when there is a budget shortfall. We are grateful for the governor prioritizing cutting subsidies to the most polluting industries in the state and we urge him to cut even more of these wasteful handouts.

“We’re disappointed in the proposed cuts to the state’s clean car, truck and bus programs and to rooftop solar power and storage incentives, especially as rooftop solar installations stall. Clean energy and climate programs are investments we make for our kids and grandkids. If we cut now, they pay more later in health, and in their environment as well as money.

“We strongly encourage Gov. Newsom to work with the legislature to keep finding creative ways to restore funding for clean air and a better future for all Californians.”

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