{"id":23541,"date":"2025-09-19T09:01:12","date_gmt":"2025-09-19T16:01:12","guid":{"rendered":"https:\/\/calclimateag.org\/final-cap-and-invest-bills-pass-with-important-climate-reforms-and-secure-farmland-conservation-funding\/"},"modified":"2026-04-17T08:18:49","modified_gmt":"2026-04-17T15:18:49","slug":"final-cap-and-invest-bills-pass-with-important-climate-reforms-and-secure-farmland-conservation-funding","status":"publish","type":"post","link":"https:\/\/calclimateag.org\/es\/final-cap-and-invest-bills-pass-with-important-climate-reforms-and-secure-farmland-conservation-funding\/","title":{"rendered":"Final Cap-and-Invest Bills Pass with Important Climate Reforms and Secure Farmland Conservation Funding"},"content":{"rendered":"

Effort to Secure Reliable Funding for Other Agricultural Climate Solutions Will Continue in 2026<\/h2>\n\n\n\n

The California state legislature passed a final package of bills on September 13 to reauthorize the state\u2019s Cap-and-Invest Program (renamed from Cap-and-Trade) through 2045. <\/p>\n\n\n\n

Assembly Bill 1207<\/a>, by Assemblymember Jacqui Irwin, makes some important, practical reforms to reduce energy costs for farmers and families and keep the state on track to achieve its critically important climate and clean energy goals. <\/p>\n\n\n\n

Senate Bill 840<\/a>, by incoming Pro Tem Senator Monique Lim\u00f3n, requires a reevaluation of offsets in the Cap-and-Invest Program and establishes a framework for Greenhouse Gas Reduction Fund (GGRF) appropriations that ensures stable funding of approximately $80 million annually for the Programa de Conservaci\u00f3n de Tierras Agr\u00edcolas Sostenibles<\/a> (SALC) under the umbrella of the Affordable Housing and Sustainable Communities program.<\/p>\n\n\n\n

SB 840 also expresses the legislature\u2019s intent to direct specific percentages of GGRF to seven categories of climate solutions, including agricultural climate solutions, starting next year, with appropriations for each of those categories to be guided by multiyear spending plans for each category. This intent language represents a compromise between the Assembly, which had championed CalCAN\u2019s proposal for a dedicated percentage of GGRF funding for agricultural climate solutions equivalent to approximately $300- $400 million per year, and the Senate. <\/p>\n\n\n\n

This \u201cdedicated percentage with a multiyear spending plan\u201d approach would have balanced consistency of funding for the agricultural sector with strategic flexibility and oversight for the legislature to incrementally adjust individual program funding levels over time in response to changes in program demand and efficacy, federal funding, new technologies, regulatory pressures, and adoption curves. While we are disappointed the legislature did not determine a percentage of funding for agriculture this year, we appreciate the legislature\u2019s intention to make this approach a reality for agricultural climate solutions next year.<\/p>\n\n\n\n

Cap-and-Invest Program Remains a Critical Source of Funding for Agricultural Climate Solutions<\/strong><\/h2>\n\n\n\n

The revenue generated by the Cap-and-Invest Program has been a critical source of funding for many of the programs CalCAN has advocated for in the past decade, including the Programa alternativo de gesti\u00f3n del esti\u00e9rcol<\/a>, Programa de suelos sanos<\/a>, State Water Efficiency and Enhancement Program<\/a>, Programa de Conservaci\u00f3n de Tierras Agr\u00edcolas Sostenibles<\/a>, y Climate Smart Agriculture Technical Assistance Program<\/a>. These programs have all proven to be cost-effective, multi-beneficial, and in high demand by California farmers and ranchers.<\/p>\n\n\n\n

Historically, all of these programs, with the exception of SALC, have had to compete on an annual basis against over 100 other GGRF-funded programs for discretionary GGRF funding, which has resulted in inconsistent boom-and-bust funding cycles that have caused perennial challenges for folks implementing the programs, including farmers and ranchers, technical assistance providers, and California Department of Food and Agriculture staff. That\u2019s why\u00a0CalCAN and a coalition of 18 other food and farming organizations\u00a0<\/a>advocated this year for a dedicated percentage of funding for agricultural climate solutions going forward.<\/p>\n\n\n\n

The Assembly\u2019s\u00a0GGRF spending proposal<\/a>, championed by Assemblymember Jacqui Irwin and Speaker Robert Rivas, closely mirrored our request and would have resulted in approximately $300-400 million per year for agricultural climate solutions \u2013 a transformative level of investment for California\u2019s farmers, ranchers, and agricultural economy.<\/p>\n\n\n\n

While we are deeply disappointed that the Assembly\u2019s proposal for agricultural funding was dropped in negotiations with the Senate, we are looking forward to working with sustainable agriculture champions next year to secure a robust percentage and spending plan for sustainable agricultural climate solutions under the framework of SB 840 (Lim\u00f3n).<\/p>\n\n\n\n

At the same time, we are grateful for SB 840\u2019s stable funding for the SALC program, as well as the Safe and Affordable Drinking Water Fund and AB 617 Community Air Protection Program. These programs advance CalCAN\u2019s vision of ensuring clean air and water for all communities in California and protecting California\u2019s finite and world-class farmland from sprawling development through conservation easements and better land use planning.<\/p>\n\n\n\n

Important, Practical Cap-and-Invest Program Reforms<\/strong><\/h2>\n\n\n\n

In the decade ahead, the Cap-and-Invest Program will need to play a more robust role in achieving the state\u2019s climate and clean energy goals, while also making the cost of living more affordable. We applaud the legislature for improving the Cap-and-Invest Program and associated climate credit in meaningful ways. Specifically, CalCAN supports the following reforms in AB 1207 (Irwin) and SB 840 (Lim\u00f3n):<\/p>\n\n\n\n