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Subcommittee debates GGRF expenditure plan, new ZEV incentive and priorities for transit and community programs
Summary
Legislative analysts and Finance sparred over how to prioritize Greenhouse Gas Reduction Fund tiers as the administration proposed backfilling general fund costs and a new $200 million ZEV incentive; LAO urged a high bar for new programs and flagged risks to tier 3 programs such as AB 6 17 implementation.
The budget subcommittee continued with an expansive discussion of the Greenhouse Gas Reduction Fund (GGRF) expenditure plan, trailer bill language to implement SB 840 (referred to in the transcript as SB 8 40) and a one-time $200 million light-duty zero-emission vehicle (ZEV) incentive proposal.
Brandon Merritt of the Department of Finance presented the governor's plan, estimating about $3.7'$3.8 billion in auction revenue for 2026'27 and describing a three-tier funding structure: Tier 1 state operations and priority items (manufacturing tax credits, state operations and a Cal Fire backfill), Tier 2 discretionary items (including a proposed $1 billion for high-speed rail and $1 billion for other discretionary investments), and Tier 3 prior…
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