Climate Bond (Proposition 4)
Catalogue of CDFA Climate Bond Programs
Climate Bond (Proposition 4)
Proposition 4, Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, also known as the Climate Bond, authorized $10 billion in bonds to finance projects addressing California’s climate change, water resiliency, natural resources, wildfires, and other environmental projects.
From the $10 billion, $300 million was designated for agriculture, of that, $255 million was allocated for climate smart agriculture and resiliency programs at the California Department of Food and Agriculture.
CDFA Climate Bond Programs
Fairground Climate Bond Program ($40 million)
Mobile Farmers' Market Grant Program ($20 million)
Tribal Food Sovereignty ($15 million)
Regional Farm Equipment Sharing Program ($15 million)
Terminology
What is a Disadvantaged Community (DAC)?
A community with a median household income of less than 80 percent of the area average or less than 80 percent of statewide median household income.
What is a Severely Disadvantaged Community (SDAC)?
A community with a median household income of less than 60 percent of the area average or less than 60 percent of statewide median household income.
What is a Vulnerable Population?
At least 40% of the total funds available will be allocated for projects that provide meaningful and direct benefits to vulnerable populations or disadvantaged communities (DAC).
Frequently asked questions
What is a block grant?
Funding is awarded to regional partner organizations. Partners provide technical assistance, outreach, and project support. These organizations administer grant programs for on-farm projects. Producers apply for funding through the partner, not CDFA.
What is the Climate Bond?
In November 2024, California voters approved Proposition 4, also known as the Climate Bond. This historic $10 billion investment helps safeguard our communities, natural resources, and future in the face of climate change.
Before funds can be used, the Governor and Legislature must authorize spending through the Budget Act each year. Once authorized, departments that administer programs can begin rolling out projects and grant opportunities.
To provide funding for this work, the State Treasurer’s Office issues and sells bonds. The proceeds reimburse project expenses as work moves forward. This process will continue over several years as additional funds are authorized.
How Does the Climate Bond Advance California’s Goals
The Climate Bond advances the state’s overarching goals of protecting Californians from climate impacts and achieving carbon neutrality through nature-based solutions. It does this by helping local communities adapt by restoring and conserving natural landscapes that reduce extreme heat and wildfire risk, improve drought and flood resilience, and support clean air and water. It also invests in essential infrastructure and ensures access to clean drinking water, healthy local food, and safe, welcoming outdoor spaces.
How much of the Climate Bond will go towards Vulnerable Populations & Disadvantaged Communities?
At least 40% of the total funds available will be allocated for projects that provide meaningful and direct benefits to vulnerable populations or disadvantaged communities (DAC).
Of this 40%, at least 10% of the total funds available will be allocated for projects that provide meaningful and direct benefits to severely disadvantaged communities (SDAC).