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Governor’s 2022-23 Budget Proposal Includes Focus on Energy and Climate Priorities

Governor Newsom has unveiled his 2022-2023 Budget Proposal to the California Legislature, including funding for energy infrastructure and expanded initiatives to address the climate crisis.

Highlights include:

  • New climate tax credits: an Innovation Headquarters Credit for companies investing in activities and technologies that mitigate climate change and are headquartered in California, and a new tax credit administered by GO-Biz funding costs of developing green energy technologies, including EV manufacturing and infrastructure, geothermal, lithium extraction, and battery manufacturing, long-duration storage, addressing methane emissions, and hydrogen technologies to reduce the use of natural gas.
  • Investment to accelerate zero-emission vehicles (ZEVs), including funding supporting low-income consumer EV purchases, expansion of EV charging in low-income neighborhoods, funding for zero-emission short-haul trucks, transit buses, school buses, port electrification, and pilot projects in high carbon-emitting sectors such as maritime, aviation, rail, and other off-road applications.
  • Investment in clean transportation, including carbon-free transportation options, bicycle and pedestrian safety, high-speed rail, and climate adaptation projects.
  • Investment in clean energy programs, including long-duration energy storage, green hydrogen use and production, industrial and food production sector decarbonization, offshore wind, and equitable building decarbonization.
  • Funding for reforestation and forest management, firefighting, drought relief, water conservation, and planning to mitigate impacts of extreme heat and other climate challenges on vulnerable communities.
  • Funding for retraining and expansion of the low carbon economy workforce.
  • Funding to support “climate smart agriculture” to address long term economic and environmental issues and create a sustainable agricultural sector for the future.
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