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Budget trailer bills shift funds to grid support, EV incentives and update wildfire fund rules

California State Assembly Budget Committee · June 29, 2026
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Summary

Committee heard that SB 168 transfers funds for a demand‑side grid support program, creates a first‑time buyer incentive for zero‑emission vehicles, and makes clarifying updates to the wildfire fund and related fire training programs.

Jessica Holmes walked committee members through the resources and energy trailer bills. She said SB 168 allows previously authorized funds for distributed energy backup assets to be used for the demand‑side grid support program and establishes a new incentive for first‑time buyers of light‑duty zero‑emission vehicles with a one‑time appropriation of $135,500,000 in special funds.

Holmes also said SB 166 (resources) includes technical cleanups to the California Fire Service Training and Education Program, the California Fire and Arson Training Act and generation and handling fee updates, and that the budget makes clarifying changes to the wildfire fund.

Members and witnesses from environmental and clean‑energy groups supported the demand‑side grid support transfer and EV incentives during public comment; Allison Hilliard of the Climate Center and others expressed support for the SB 168 language and ZEB funding in the trailer package. Assemblymembers asked follow‑up questions about the plastics market development payment program and the likelihood of program funding tapering after the initial years.