Convening the Sierra – Fall 2026
September 25, 2026
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A budget deal between the Governor and Legislature was announced Tuesday afternoon. As details emerge, it appears that lawmakers will meet the June 30th deadline to pass the budget for the state’s new fiscal year beginning on July 1.
Many of the major budgetary decisions that SBC is tracking have been punted to later in the legislative session. Contrary to the Governor’s proposal, the legislature is opting for more time to develop a Prop 4 expenditure plan. Unfortunately, it appears that the legislature may be willing to accept greater use of Prop 4 funding as backfill for previous General Fund commitments than it had originally indicated. SBC and other members of the Yes on Prop 4 coalition have consistently conveyed to the legislature that using Prop 4 as backfill breaks with the intent of the measure to increase funding for climate resilience.
On the Cap-and-Trade front, the legislature is also kicking the can down the road. Cap-and-Trade reauthorization will likely be taken up later in the summer or potentially in 2026. The legislature is also delaying a decision on most expenditures of the Greenhouse Gas Reduction Fund (or GGRF, the state fund where Cap-and-Trade revenues are deposited). However, lawmakers have agreed to use some GGRF dollars to relieve pressure on the General Fund, which may require cutting funding previously committed to other climate programs.
In terms of legislation, bills still moving are now facing hearings in the second house. This year, the state’s challenging budget situation has loomed over bills with large price tags. Some SBC and Sierra Consortium priority legislation, including SB 427 (which would permanently authorize the Habitat Conservation Fund) and AB 900 (which would support science-based management of 30×30 lands), have made it to the second house. AB 491 (which would have codified the nature-based solutions climate targets as an official state goal) was unfortunately waylaid by a high cost estimate.
Earlier this month, Senate Democrats selected Senator Monique Limón as the next leader of the Senate. She will take over next year from current Pro Tem Senator Mike McGuire, who terms out in 2026. Senator Limón is a strong climate champion in the Senate and has been leading discussions around Cap-and-Trade negotiations this year. This is an exciting change for climate advocates, especially with important decisions regarding climate policy and funding coming up this legislative session.
Join SBC at these Upcoming Events Across the Region
Two SNEW services that are often requested by Sierra Nevada public agencies are energy benchmarking (sometimes including AB 802 reporting for buildings
California’s 2026-27 legislative session wrapped up September 1 after a turbulent final week of negotiations over wildfire policy, funding, and the state budget. While a last-minute proposal on wildfire liability ultimately stalled, the Legislature did restore and increase funding for climate resilience through Proposition 4 and the Greenhouse Gas Reduction Fund (GGRF)—a meaningful outcome for Sierra communities amid a challenging state budget year.
The final plan includes $329.5 million for wildfire and forest resilience through Prop 4 and $118 million for wildfire prevention through GGRF. While these investments are an improvement over the June budget, wildfire resilience funding remains near historic lows, with no clear plan for sustained investment in future years.
Read more about the final budget, Prop 4 and GGRF allocations, and what’s next for wildfire and climate resilience in the Sierra.