Legis
Environment
SB 193, Chapter 259, Statutes of 2026 · Friday 18 September 2026

Public resources: Greenhouse Gas Reduction Fund: programs

SB 193 restructures Greenhouse Gas Reduction Fund priorities while continuing major climate, housing, transit, rail, wildfire, and water investments.

The law directs cap-and-trade auction proceeds and interest toward specified programs, adds state operating costs to the funding priority, and preserves large continuous appropriations for climate-related projects. It also extends the school energy-efficiency program through 2030.

What the law does ​

  • Deposits interest earned on cap-and-trade auction proceeds into the Greenhouse Gas Reduction Fund.
  • Establishes annual funding priorities beginning in 2026–27, including fire-fee revenue replacement, the Legislative Counsel Climate Bureau, approved state operations, and administrative costs.
  • Continues $1 billion for high-speed rail, including the authority’s state operations, while prioritizing completion of the Merced-to-Bakersfield segment.
  • Continuously allocates $800 million annually to the Affordable Housing and Sustainable Communities Program, split between housing projects and sustainable-community investments.
  • Continues annual funding for transit and intercity rail capital projects, low-carbon transit operations, community air-pollution reduction, forest health and fire prevention, and safe drinking water.
  • Authorizes the California Department of Transportation to provide administrative support for the Transit and Intercity Rail Capital Program and Low Carbon Transit Operations Program.
  • Extends the School Energy Efficiency Stimulus Program until January 1, 2031, with deadlines for spending, encumbering, liquidating, or returning utility-funded program money.

Who it affects ​

  • The California High-Speed Rail Authority and communities along the Merced-to-Bakersfield rail segment.
  • Affordable-housing developers, sustainable-community projects, transit agencies, and rail, bus, and ferry riders.
  • Communities targeted for air-quality improvements, wildfire-risk reduction, and safe drinking-water assistance.
  • Schools, participating electric and gas utilities, and contractors working on school ventilation, energy-efficiency, plumbing, and appliance projects.