California voters approve Proposition 4, authorizing $10B in bonds for climate projects
California voters have passed Proposition 4, a ballot measure that would allow the state to borrow $10 billion to help conserve natural resources and fund climate-related projects, the Associated Press has projected.
Over the past decade, California has spent an average of $13 billion per year on climate change, with about 15% of that coming from bonds, according to the nonpartisan Legislative Analyst's Office.
With Proposition 4's passage, the state is authorized to sell a $10 billion bond, allowing the money to be used for loans and grants to local governments, Native American tribes, nonprofits and businesses to battle climate change. Some money would also be made available for state agencies to spend.
How funds would be distributed under Prop. 4
The ballot measure aims to allocate $3.8 million to water projects to help fight drought and control flooding, among other things. About $1.9 billion of that total would go toward increasing the amount of safe drinking water available to people, including storing water for future drought and cleaning polluted water.
About $1.1 billion would be used to help reduce flood risks, including repairing dams and capturing and storing stormwater. The rest of the funds would go toward projects such as restoring rivers and lakes.
The bond would also allocate roughly $1.5 billion to help the state reduce the risk of severe wildfires by thinning trees in overgrown forests and clearing vegetation near communities.
Some of the bond money will be allocated for California's coastal areas, with about $890 million used to protect against sea-level rise, including restoring wetlands. The rest of the money would be allocated to protect marine wildlife.
The bond will also allocate money for habitat restoration and energy infrastructure, such as building wind turbines off the state's coast.
Proposition 4 would also put money toward parks and protect communities from extreme heat by funding relief facilities and shelters for use during heatwaves or natural disasters.
About $105 million would be used to support farms by improving soil health, reducing air pollution and saving water.
What's the financial impact of Proposition 4?
The $10 billion bond would be paid back with interest from the state General Fund — about $400 million each year for 40 years.
The LAO says the state bond funds are likely to save local governments money due to additional state funding replacing local government money that would be needed for projects. The amount local governments would save is not known at this time, the LAO says.
