Table 7. Clean Transportation Related Investments

California 2023-24 Enacted Budget. Analysis by Beacon Economics.

The enacted budget for FY 2023-2024 proposed billions of dollars of investments in equitable and clean transportation, to help achieve California’s climate goals.¹⁰⁷ Specifically, $16.1 billion funding was allocated to new transportation infrastructure programs and projects, which increased by $1.1 billion compared to 2022. To date, California has secured $39 billion in IIJA formula funding for highway and transit programs, at the local level, Caltrans will continue delivering over $20 billion in the State Highway Operations and Protection program over the next five years. These investments in sustainable transportation infrastructure align with the conceptual investment framework under California’s Climate Action Plan for Transportation Infrastructure (CAPTI), which is directed by Executive Orders N-19-19¹⁰⁸ and N-79-20.¹⁰⁹ In the fiscal year 2022 Tribal Transit Project from the Federal Transit Administration, the Pueblo of Santa Clara was selected to receive $140,000 funding to upgrade two bus stops with shelters and passenger amenities to improve accessibility.¹¹⁰ Additionally, Governor Newsom is releasing over $300 million funding to support housing and infrastructure development around transit hubs to Metropolitan Planning Organizations across California, to accelerate the state’s climate goals and GHG emission targets.¹¹¹

¹⁰⁸ Executive Department State of California. Executive Orders N-19-19. Available at: https://www.gov.ca.gov/wp-content/uploads/2019/09/9.20.19-Climate-EO-N-19-19.pdf

¹⁰⁹ Executive Department State of California. Executive Orders N-79-20. Available at: https://www.gov.ca.gov/wp-content/uploads/2020/09/9.23.20-EO-N-79-20-Climate.pdf

¹¹⁰ Federal Transit Administration, Fiscal Year 2022 Tribal Transit Project Selections. January 13,2023. Assessed July 06, 2023. Available at: https://www.transit.dot.gov/funding/grants/grant-programs/fiscal-year-2022-tribal-transit-project-selections

Sufficient funding is vital to maintain the efficiency, competitiveness, and environmental sustainability of California's transportation system. Several existing programs are projected to deplete their funding by 2028. Considering the increased demand on the transportation system over the past year, it becomes crucial for transit agencies to secure the necessary funding levels to sustain and preserve existing infrastructure. The defunded projects will likely have an impact on the job market, as every $1 billion in highway and transit investment supports 13,000 jobs.¹¹² The NRDC's recent report¹¹³ highlights a significant gap in California's allocation of transportation funds, with only 18.6 percent directed towards low-carbon mobility options. This distribution raises concerns about the state's commitment to climate-friendly transportation, especially given the pressing need to reduce emissions from the transportation sector—the largest source of greenhouse gas emissions in the state. The analysis reveals that a substantial portion of funds (81.4%) is dedicated to maintaining and expanding roads and highways, contributing to pollution, unhealthy air, urban sprawl, and traffic fatalities. The gas tax is experiencing a structural decline, and we must explore alternative revenue sources within the next approximately five years.

¹¹² California Transportation Commission. Transportation Funding in California. March 2017. Assessed July 19,2023. Available at: https://catc.ca.gov/-/media/ctc-media/documents/fs-trans-funding-overview-031017-a11y.pdf

¹¹³ Natural Resources Defense Council. CLOSING THE CLIMATE INVESTMENT GAP: CALIFORNIA MUST PRIORITIZE CLIMATE-SMART TRANSPORTATION PROJECTS. October 2023. Accessed December 14, 2023. Available at: https://www.nrdc.org/sites/default/files/2023-09/ca-transportation-investment-report.pdf