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Assembly Budget Subcommittee debates use of Prop. 4 energy bond for offshore wind and transmission
Summary
Department of Finance and the Legislative Analyst's Office described proposed allocations from Proposition 4 for clean energy, offshore wind and transmission financing; LAO urged caution on near‑term appropriations for offshore wind and urged legislative direction on transmission priorities.
The California Department of Finance told the Assembly Budget Subcommittee No. 4 that Proposition 4 set aside $850,000,000 for clean energy projects and proposed a range of appropriations and program delivery funding from the bond.
David Evans of the Department of Finance said the governor’s budget includes $46,100,000 for the demand‑side grid support program and described planned allocations for offshore wind and other clean energy programs: “To implement the requirements of section 94,530, the governor's budget includes $46,100,000 for the demand side grid support program,” and later noted allocations proposed for offshore wind and transmission. Evans also said the $325,000,000 for public financing of energy transmission projects specified in bond section 94,520 was not included in the Governor’s budget and remains pending while the state evaluates AB 3264 findings.
The Legislative Analyst’s Office urged a more cautious approach on offshore wind appropriations. Helen Kerstein of the LAO said the administration proposes to appropriate nearly all offshore wind funding in the next two years but "this is a new program" and that waiting could produce advantages, including information from federal actions and more clarity on program administration.
Subcommittee members raised local implementation questions. An assemblymember representing Humboldt County told the panel that local governments there lack technical staff and urged money for local technical assistance, and Chair Bennett pressed CPUC and other agencies on the timing of the AB 3264 transmission financing study that is due July 1, 2025.
Why it matters: Proposition 4 bond funds are large and earmarked for multiple climate‑and energy‑related purposes. How the Legislature chooses to appropriate those dollars now or delay allocations will affect near‑term project timelines for offshore wind, local port upgrades and transmission financing. The LAO framed the key tradeoff as appropriating now to accelerate projects versus waiting for federal and administrative clarity.
What’s next: The Administration is still developing its proposal for how to allocate transmission financing and told the committee it is in a "brainstorming phase" about which agency would administer public financing. The CPUC, California Energy Commission and IBank were reported to be working on the AB 3264 study that Chair Bennett said is on track for the July 1, 2025 statutory deadline.
Provenance: Excerpted remarks from the Department of Finance and the Legislative Analyst’s Office during the Assembly Budget Subcommittee No. 4 hearing on energy and Proposition 4 funding.
