The Joint Hearing of the Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection and Energy and the Senate Environmental Quality Committee convened on May 8, 2025, to discuss critical issues surrounding California's environmental policies and funding mechanisms. The primary focus of the meeting was the reauthorization of the Cap-and-Trade program and its associated Greenhouse Gas Reduction Fund (GGRF) programs.

Melissa Sparks Kranz, representing the League of California Cities, opened the discussions by emphasizing the importance of GGRF programs in maximizing greenhouse gas emission reductions and enhancing climate-resilient infrastructure. She highlighted the need for continued funding in several key areas, including land use and infill development, which are essential for sustainable communities and affordable housing initiatives. Sparks Kranz also stressed the significance of local clean transportation and transit infrastructure as cities transition to zero-emission fleets, aligning with state regulations.

The conversation then shifted to organic waste management, where Sparks Kranz advocated for ongoing investments to help local governments meet organic waste diversion goals. She pointed out that these investments are cost-effective and crucial for supporting edible food recovery programs. Notably, she mentioned that these program areas were not included in the final climate bond of Proposition 4, reinforcing the need for GGRF to continue funding these initiatives.

Doug Houston, representing the Sierra Business Council, echoed these sentiments and proposed a 25% set-aside of GGRF funds for nature-based solutions, with a particular focus on forest health and wildfire resilience. He also represented the California Park and Recreation Society, advocating for a dedicated portion of GGRF for greening urban environments.

The meeting concluded with acknowledgments of the contributions from various stakeholders and the hard work of staff in organizing the hearing. The discussions underscored the ongoing commitment to addressing climate change through strategic funding and policy initiatives, with a clear call for continued investment in programs that support sustainable development and environmental resilience in California.