SB 867 – Proposed Climate Bond for November Ballot

Late night on June 29, final amendments were made to Senate Bill 867 to place a climate bond on the November 5, 2024 General Election Ballot. SB 867 is jointly authored by 5 Senators and 2 Assembly Members, and co-authored by 14 State Senators and 8 Assembly Members. The bill would add Division 50 (commencing with Section 90000) to the Public Resources Code. 

SB 867 would provide a general obligation bond through an urgency measure, which means SB 867 requires a 2/3 vote of both houses of the California Legislature for passage, as well as the Governor’s signature. It is anticipated that SB 867 will be voted on Wednesday, July 3 before the Legislature begins its summer recess. July 3 is also the last day, per the Secretary of State, for the Legislature to place a measure on the November ballot.

SB 867 would create the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. If approved by the statewide voters, the act would authorize $10 billion under the California General Obligation Bond Law in order to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate-smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. Earlier versions of SB 867 contained $15.5 billion in funding.

As a reminder, as explained by the Office of Legislative Counsel, the state Constitution prohibits the Legislature from creating a debt or liability that singly or in the aggregate with any previous debts or liabilities exceeds the sum of $300,000, except by an act that (1) authorizes the debt for a single object or work specified in the act, (2) has been passed by a ²/₃ vote of all the Members elected to each house of the Legislature, (3) has been submitted to the people at a statewide general or primary election, and (4) has received a majority of all the votes cast for and against it at that election.

The measure includes 25 findings and declarations by the People, and defines 16 terms.

Proceeds of bonds issued and sold pursuant to this act are to be allocated according to the following schedule:

(1) Three billion eight hundred million dollars ($3,800,000,000) for safe drinking water, drought, flood, and water resilience programs, in accordance with Chapter 2 (commencing with Section 91000).

(2) One billion five hundred million dollars ($1,500,000,000) for wildfire and forest resilience programs, in accordance with Chapter 3 (commencing with Section 91500).

(3) One billion two hundred million dollars ($1,200,000,000) for coastal resilience programs, in accordance with Chapter 4 (commencing with Section 92000).

(4) Four hundred fifty million dollars ($450,000,000) for extreme heat mitigation programs, in accordance with Chapter 5 (commencing with Section 92500).

(5) One billion two hundred million dollars ($1,200,000,000) for biodiversity protection and nature-based climate solution programs, in accordance with Chapter 6 (commencing with Section 93000).

(6) Three hundred million dollars ($300,000,000) for climate-smart, sustainable, and resilient farms, ranches, and working lands programs, in accordance with Chapter 7 (commencing with Section 93500).

(7) Seven hundred million dollars ($700,000,000) for park creation and outdoor access programs, in accordance with Chapter 8 (commencing with Section 94000).

(8) Eight hundred fifty million dollars ($850,000,000) for clean air programs, in accordance with Chapter 9 (commencing with Section 94500).

Section 3 of the bill states that SB 867 will take effect upon approval of the voters of the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, as set forth in Section 2 of this act.

Section 4 of the bill provides a severability clause. Section 5 of the bill provides the urgency clause, which is needed “In order to place the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 on the November 5, 2024, statewide general election ballot and to expedite the implementation of the projects supported by that bond act for the protection of public health, safety, and the environment, it is necessary for this measure to take effect immediately.”