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Sac Metro consultants brief board on state budget, cap-and-trade negotiations and AB 617 funding priorities
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Summary
Arc Strategies representatives updated the board on the state budget passed June 30 and active cap-and-trade negotiations, highlighted one-time and ongoing funding for truck electrification incentives, and outlined district priorities including sustained AB 617 funding, Clean Cars for All allocations, and biomass protocol legislation.
Amy Brown and Dominic Demare of Arc Strategies briefed the Sacramento Metropolitan Air Quality Management District board on Aug. 28 about the state budget, active cap-and-trade negotiations and district legislative priorities for 2025.
Brown said the legislative session was nearing adjournment — "Session ends on September 12," — and that lawmakers, the governor and stakeholders were negotiating cap-and-trade extensions to provide market stability. She summarized the recently enacted 2025–26 state budget, passed June 30, noting officials used portions of the rainy day fund and that a multi-billion-dollar deficit was reduced during the year-long budget process. Brown highlighted air-quality-related allocations in the budget including a $132,000,000 one-time allocation from the Air Pollution Control Fund for hybrid and zero-emission truck and voucher incentives, plus $2,300,000 in ongoing air pollution control fund support for incentive implementation.
Arc Strategies emphasized two district priorities: sustaining AB 617 funding for community programs and fully implementing a reallocation authority for Clean Cars for All funds so districts can direct unspent monies to immediate needs. Brown said AB 617 funding and continued investment were important because of the trust and implementation infrastructure built with communities in South Sacramento.
The consultants also discussed wildfire-related budget moves: a reported $1,540,000,000 shift into the Greenhouse Gas Reduction Fund for wildfire prevention and suppression initiatives, $31,500,000 allocated for a new Cal Fire training center and $39,000,000 in general fund support to transition seasonal firefighters to permanent positions. Brown noted proposals in some frameworks for five-year efficacy reviews of programs funded through cap-and-trade and greenhouse gas revenues.
Arc Strategies described a district-sponsored bill by Senator Anna Caballero that would direct agencies to develop methods to quantify avoided emissions and beneficial uses of forest and agricultural biomass; staff said the bill was on the Assembly Appropriations suspense file and had a reasonable chance of moving forward. The consultants urged the board to emphasize program implementation and outcomes in legislative advocacy, not only application and adoption metrics.
Board members thanked the consultants and district staff for advocacy work. No public comments were offered on the legislative presentation during the meeting.
