SB 74: Office of Land Use and Climate Innovation: Infrastructure Gap-Fund Program.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law establishes the Office of Land Use and Climate Innovation in the Governor’s office for the purpose of serving the Governor and the Governor’s cabinet as staff for long-range planning and research and constituting the comprehensive state planning agency. Existing law authorizes a local agency to finance infrastructure projects through various means, including by authorizing a city or county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance that provide significant benefits to the district or the surrounding community.

This bill would require the office, upon appropriation by the Legislature, to establish the Infrastructure Gap-Fund Program to provide grants to local agencies for the development and construction of infrastructure projects, as defined, facing unforeseen costs after starting construction. The bill would authorize the office to provide funding for up to 20% of a project’s additional projected cost, as defined, after the project has started construction, subject to specified conditions, including, among other things, that the local agency has allocated existing local tax revenue for at least 45% of the initially budgeted total cost of the infrastructure project. When applying to the program, the bill would require the local agency to demonstrate challenges with completing the project on time and on budget and how the infrastructure project helps meet state and local goals, as specified. The bill would require the office to develop guidelines to implement the program that establish the criteria by which grant applications will be evaluated and funded. The bill would make these provisions operative on January 1, 2030.

Sponsors

Sponsors by party (alphabetical): Republican 9

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 29, 2025August 29 hearing: Held in committee and under submission.
2. July 2, 2025July 2 set for first hearing. Placed on APPR. suspense file.
3. June 18, 2025From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 10. Noes 0.) (June 18). Re-referred to Com. on APPR.
4. June 5, 2025Referred to Com. on L. GOV.
5. May 29, 2025In Assembly. Read first time. Held at Desk.
6. May 29, 2025Read third time. Passed. (Ayes 38. Noes 0. Page 1323.) Ordered to the Assembly.
7. May 27, 2025Ordered to special consent calendar.
8. May 23, 2025Read second time. Ordered to third reading.
9. May 23, 2025From committee: Do pass. (Ayes 6. Noes 0. Page 1190.) (May 23).
10. May 16, 2025Set for hearing May 23.
11. April 21, 2025April 21 hearing: Placed on APPR. suspense file.
12. April 8, 2025Set for hearing April 21.