Everyone wants a piece of the budget

Greenhouse Gas Reduction Fund

The messiest fight will likely be over the greenhouse gas reduction fund, the coveted pot of revenue generated through emissions auctions that bankrolls a range of climate programs.

While much of the roughly $4 billion in annual GGRF dollars is already accounted for, lawmakers carved out $1 billion in discretionary funding when they extended cap and trade last session. And much like last year, Newsom wants to earmark most of that funding — $750 million — to backfill a budget shortfall at the California Department of Forestry and Fire Protection.

“The fire issues are real and to be addressed, but we thought that the Legislature had spoken on the matter, and that it would be done differently,” said Michael Berube, CEO of CALSTART, a nonprofit that represents automakers and clean fuel companies. “I don’t know how much money in the end would be available, but we think there would be funds to do both light-duty incentives and also continue to support the medium- and heavy-duty trucks.”