Climate Propositions and Measures in San Diego County

October 29, 2024

min

Mustafa Al Ghanimi

As climate change and its consequences become increasingly apparent, local governments are urged to take proactive and preventive measures to address its impacts. In San Diego, a variety of propositions and initiatives have been introduced to confront climate challenges, ranging from renewable energy efforts to policies that may entail some focus on climate change-related issues. At Hammond Climate Solutions Foundation (HCSF), we continuously analyze these options to better understand what is best for our community and how we can expedite positive change toward a just and livable future. We believe that it’s essential for citizens to be informed about the options available on this year's 2024 ballot.

Proposition 4

In recent years, environmental groups and renewable energy advocates have pushed for increased investment in climate action, particularly after Gov. Gavin Newsom and the Legislature approved a $54.3 billion plan known as the "California Climate Commitment" in 2022. However, due to budget constraints, this commitment was scaled back to $44.6 billion for the current fiscal year.

Proposition 4 is a significant measure on California's ballot, proposing a $10 billion bond aimed at addressing the state's most pressing environmental challenges. If passed, the bond would provide funding for projects related to drought, flood prevention, wildfire mitigation, and sea-level rise, among other climate-related concerns. The initiative is part of California’s broader commitment to lead in climate action. However, the bond raises concerns about long-term financial implications, particularly given the state's existing deficit.

Key Goals

The largest portion of the bond, $3.8 billion, would be allocated to projects related to drought, flooding, and water supply. These funds aim to improve water availability and quality, reduce the risk of flooding, and upgrade water facilities. Specific initiatives include enhancing water recycling and transforming wastewater into potable water for homes and drinking.

In addition, $1.5 billion would go toward "Forest Health and Wildfire Prevention," focusing on strategies like tree thinning and the removal of overgrown vegetation to reduce wildfire risk, a particularly urgent issue for the state.

Another significant portion, $1.2 billion, would be used to address sea-level rise and coastal restoration efforts. The goal is to mitigate the risks posed by rising ocean levels and to protect coastal ecosystems and fish populations.

Other notable allocations include:
$1.2 billion for land conservation and habitat restoration.
$850 million for renewable energy infrastructure, including offshore wind energy.
$700 million for expanding and repairing local and state parks.
$450 million for reducing the impacts of extreme heat on communities.
$300 million to help farms respond to the effects of climate change and adopt sustainable agricultural practices.

Fiscal Impacts

While the proposed bond addresses a wide range of pressing environmental concerns, the financial implications for California’s taxpayers are significant. According to the Legislative Analyst’s Office (LAO), the state would incur an additional $400 million annually over the next 40 years to repay the bond, potentially increasing the state’s existing deficit. This comes at a time when California is already facing a projected $46.8 billion in its budget.

This could lead to difficult decisions in future budget allocations, as funds will need to be diverted to service the debt from the bond. While the environmental projects are undeniably important, voters will need to weigh these benefits against the financial strain that Proposition 4 could impose on the state’s economy.

Balancing Climate Action and Fiscal Responsibility

Proposition 4 represents a critical investment in California’s climate future, but it also highlights the tension between taking immediate climate action and managing long-term fiscal health. The bond would finance necessary projects to combat drought, wildfires, sea-level rise, and other pressing environmental issues, potentially making California more resilient to climate change. However, the reliance on debt financing raises questions about whether the state can sustain these investments without exacerbating its fiscal problems.

Voters may also consider alternative approaches to achieving these climate goals without incurring additional debt. Options like community-based climate initiatives, rooftop solar projects, and more efficient water management could provide cost-effective and sustainable solutions. Proposition 4’s goals are well-aligned with California’s commitment to addressing climate change, but its reliance on debt may not be the most financially prudent path forward. Voters will need to carefully balance the need for immediate climate action with the state’s long-term fiscal responsibility

Measure E

Measure E is a proposal by the City of San Diego to implement a 1% general transactions and use tax (sales tax) increase. If passed, this would raise the current sales tax in San Diego from 7.75% to 8.75%, with the potential to generate an estimated $400 million annually for the city’s General Fund. Unlike a special tax, which would be earmarked for specific purposes, Measure E is a general tax, meaning the revenue could be used for a wide variety of city services and initiatives.

The additional revenue could be critical for addressing major city needs, but it comes at a cost. The sales tax is regressive, meaning it disproportionately affects lower-income households who spend a larger percentage of their income on taxable goods. For San Diego residents already dealing with inflation and high costs of living, this could add to their financial burden, making the decision about Measure E a challenging one for voters.

Key Goals

The primary goal of Measure E is to generate additional revenue to fund the city’s broad array of public services, including:
Public Safety: Enhancing fire, police, and emergency services.
Infrastructure Repair: Allocating funds for the maintenance and improvement of streets, sidewalks, storm drains, and other city infrastructure.
City Services: Supporting parks, libraries, recreational facilities, and other community resources.

While there are no legally binding restrictions on how the funds will be spent, the city has indicated that the proceeds would be used to maintain or improve upon the existing level of services, rather than replacing current spending.

Fiscal Impacts

If Measure E is approved, the additional $400 million annually would boost the city’s financial resources, providing more flexibility to address both immediate needs and long-term projects. The new revenue would be subject to the same auditing and oversight as other General Fund revenues, with annual reports to the City Council ensuring accountability. This could allow for more sustained investments in infrastructure, public safety, and community programs.

However, the measure has sparked concerns about the potential burden on consumers, particularly low-income residents. Sales taxes are regressive, meaning they disproportionately impact lower-income households, who spend a larger percentage of their income on taxable goods. This could create financial strain for some residents, particularly in the context of economic challenges like inflation.

Balancing Climate Action and Fiscal Responsibility

Although Measure E is not explicitly tied to climate-related projects, the revenue it generates could be leveraged to support the city’s broader environmental and sustainability goals. For example, funds could be allocated to infrastructure improvements that enhance climate resilience, such as upgrading stormwater systems to handle extreme weather or investing in sustainable public spaces.

At the same time, the financial impact on residents must be considered. Sales taxes tend to disproportionately affect lower-income residents, and in a time of inflation and economic uncertainty, some may question whether the tax is the best approach. Still, the measure offers a way for the city to address infrastructure deficits and other challenges without relying on borrowing or incurring long-term debt, a contrast to Proposition 4’s bond-financed approach.
In addition, while the increased revenue could support long-term sustainability and resilience efforts, the regressive nature of the tax could exacerbate financial inequities. As with any tax proposal, voters will need to weigh the potential benefits to the potential city services and infrastructure against the economic impact on households, particularly those already struggling with the high cost of living.

Measure G

Measure G is a proposed half-cent sales tax increase on the November 5, 2024 ballot aimed at transforming transportation across San Diego County. The measure is expected to raise approximately $900 million annually, funding critical infrastructure improvements including fire protection, road maintenance, public transit, and environmental preservation. At Hammond Climate Solutions Foundation (HCSF), we have endorsed Measure G due to its alignment with sustainability goals and its potential to significantly enhance climate resilience.

Key Goals and Fund Allocation

Measure G prioritizes a wide range of transportation and environmental improvements, with funds allocated as follows:
50% toward major public transit infrastructure projects, promoting sustainable transportation and reducing traffic congestion.
27% for capital projects to improve road and highway traffic flow and community safety.
7% for local street maintenance and repair, addressing San Diego’s crumbling infrastructure.
12% for transit operations and maintenance within the Metropolitan Transit System and North County Transit District.
2% for the repair, rehabilitation, and replacement of infrastructure within the rail transit system.
2% or less allocated for general administrative services.

These funds would be placed into a “lockbox,” ensuring that they are used exclusively for the designated projects. If any funds are misused, the oversight committee can refer cases for criminal prosecution.

Fiscal Impacts

If approved, Measure G would raise the countywide sales tax to 8.75%. While this increase may pose a financial burden on some residents, particularly lower-income households, the long-term benefits could include reduced traffic, enhanced safety, and improved infrastructure. By securing additional state and federal matching funds, Measure G would maximize local investments in transportation and environmental sustainability, ensuring a more sustainable and expansive public transportation system.

Balancing Climate Action and Fiscal Responsibility

Measure G includes stringent fiscal safeguards such as independent citizen oversight, public transparency, and annual audits. All funds remain under local control, and for every dollar generated, two dollars in additional funding will be secured from state and federal sources, ensuring billions for local improvements.

At Hammond Climate Solutions Foundation, we endorse Measure G because it offers significant opportunities to advance climate action. The measure’s emphasis on expanding public transit infrastructure, protecting natural habitats, and improving transportation safety aligns with our mission to promote sustainability. It also addresses the increasing wildfire risk by improving evacuation routes in vulnerable areas.

While the proposed tax increase poses a financial consideration, the long-term benefits of improved roads, enhanced transportation safety, and stronger environmental protections make Measure G a vital investment in San Diego County’s future. Whether the measure will fully prioritize climate action remains to be seen, but its potential for positive, lasting environmental impact is undeniable.

With the 2024 ballot offering important decisions on a variety of issues, including those related to climate and infrastructure, it is crucial for voters to engage with the options available. These measures will have long-term implications for how San Diego will address environmental concerns, public safety, and community needs.

At Hammond Climate Solutions Foundation, we encourage all citizens to stay informed and take part in the voting process. Your participation helps shape the direction of our community and ensures that we continue working toward a sustainable future.

For more information on local ballot measures and how to vote, visit the San Diego County Elections website.

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Celebrating Climate Action - 2022 Year in Review

Foundation

December 29, 2022

min

Celebrating Climate Action - 2022 Year in Review

As 2022 comes to a close, we wanted to reflect on all we have accomplished this year as well as share what we have in store for 2023. From fighting for the equitable and sustainable expansion of the rooftop solar industry to successfully advocating for comprehensive and legally-binding climate action plans to managing clean energy initiatives, this year has been packed with local, statewide and national climate action alongside many amazing partners. Thank you for supporting our work!

Hammond Climate Solutions’ 2022 highlights:

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We publicly changed our operations from a social enterprise to Hammond Climate Solutions Foundation, a registered 501(c)(3), which is allowing us to broaden our impact!
Our climate policy efforts helped:

Push for a solar-friendly net metering agreement
Provide feedback for the City of San Diego’s Climate Action Plan update and the County of San Diego’s Regional Decarbonization Framework
Launch the Fossil Fuel Free Pledge!
Provide input for San Diego County’s District 3 Environmental Roundtable

The programs and projects we manage continued to make a positive impact in communities across the country:

We helped over 20 nonprofit organizations go solar this year through our Solar Moonshot Program and passed the $1,000,000 per year fundraising goal
We managed $8,387,418.01 in recoverable grants, which helped nonprofits nationwide afford the switch to clean energy and energy storage
We continued managing two e-bike pilot programs and assisted our client BQuest Foundation in supporting an e-bike program for De Anza College in Cupertino, California
We oversaw the installations of an EV charging station at a San Diego-based nonprofits serving communities of concern with two more underway
Four more California Electric Vehicle Incentive Project (CALeVIP) rebates that we had applied for were given the green light to proceed, totalling $52,000

In Q1, we accepted two awards - the first was the San Diego Green Building Council’s Sustainable Organization award, and the second was for our founder and executive director, Tara Hammond, who was one of the San Diego State University Alumni’s Rising Aztec winners
Our team proudly served in leadership roles on a number of boards and committees including:

California Alliance for Community Energy (Steering Committee)
GRID Alternatives (San Diego Board of Directors)
SanDiego350 (SouthBay Eco Justice team)
San Diego Green New Deal Alliance (Steering Committee)
San Diego Community Power (Community Advisory Committee and Executive Ad Hoc Committee)
Climate Defenders Action Fund (Board of Directors)
San Diego Climate Hub (Hub Manager)

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Net Energy Metering

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After a two and a half year battle, the California Public Utilities Commission made a final decision on the future of rooftop solar and approved a new net energy metering tariff. Unfortunately, the decision benefits the investor-owned utilities and will slow California’s advancement towards 100 percent clean energy, using fossil fuels for a longer duration, which accelerates the climate crisis and worsens climate injustices. The tariff makes drastic cuts to the credits customers receive for sharing excess energy with neighbors and makes solar more expensive for everyone, including low-income Californians who are currently paying a disproportionate amount of income towards skyrocketing energy costs.

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Although we are outraged that the commission has sided with the investor-owned utilities and has disregarded the thousands of letters and public comments from climate organizations, nonprofits, schools, cities, elected officials and climate justice organizations urging them to keep rooftop solar growing, we want to take a step back celebrate what our coalition was able to accomplish throughout the course of the proceeding.

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In mid-2020 we were asked by the Solar Rights Alliance to gather San Diego climate leaders to help build a statewide coalition, which became the Save CA Solar coalition, and we are so proud of the coalition’s work. San Diego was a leader in addressing this issue with the most public comments in opposition coming directly from San Diegans. This is undoubtedly due to the amount of work local organizations poured into organizing public comments, giving presentations, meetings with elected officials, organizing rallies and speaking with the media (read more about one of our successful solar rallies here). Although this decision is far from a win, we were able to:

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Stop the solar tax
Prevent changes to existing customers
Defeat Assembly Bill 1139, the “anti-solar bill”
Build a diverse statewide coalition of over 600

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For now, we will celebrate what we were able to change but this decision serves as a reminder that there is still a lot of work to do to dismantle the fossil fuel industry's influence on politics and to achieve true energy and climate justice. For more background on this topic, check out www.HelpCleanEnergy.org.

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Local Policy Highlights

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While our team fought endlessly for good policy change at the statewide level, we also helped effectively bring some big changes at our local level in 2022. The City of San Diego passed a comprehensive Climate Action Plan update, which included bold targets for the region to meet in the coming years. More importantly, it came with a promise of an implementation plan and funding plan to be released in early 2023, something the last Climate Action Plan was lacking and resulted in little to no progress on the plan.

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At the San Diego County level we helped provide important feedback for the Regional Decarbonization Framework. While the final plan has not been approved, local climate organizations are committed to ensuring this framework is not only comprehensive but provides a path for implementation and includes how we will transition workers from our current gas infrastructure as we decarbonize. We were also invited and participated in the San Diego County District 3 Environmental Roundtable strategy meetings.

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Finally, our team was proud to serve as technical stakeholders to help with the development of a number of local programs and climate boards, most notably, the development of the City of San Diego’s new Climate Advisory Boards, which will advise the city on numerous issues ranging from energy and land conservation to building electrification and stormwater issues.

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Fossil Fuel Free Pledge

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The Fossil Fuel Free Pledge, which was launched by SanDiego350, Surfrider San Diego, BikeSD, San Diego Coastkeeper and Hammond Climate Solutions Foundation, disrupts the fossil fuel industry’s anti-climate agenda by celebrating and providing transparency regarding where nonprofit organizations, elected officials and candidates receive funding. Those who take the pledge commit to not accepting money from fossil fuel companies, demonstrating dedication and seriousness to combatting the climate crisis, dismantling the local fossil fuel industry’s influence and prioritizing a healthy, equitable, ethical, just transition and sustainable world.

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Since the pledge’s soft launch during Earth month, there have been nearly 35 pledgees and we plan to expand the pledge categories in the coming months! To read more about the August launch event, click here, and to take the pledge, please fill out an application on the campaign website: www.fossilfuelfreepledge.org.

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Solar Moonshot Program

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Our Solar Moonshot Program continues to effectively make positive change by assisting nonprofit organizations across the country in adopting clean energy. To date, the Solar Moonshot Program has secured $3,150,000, which so far has assisted over 100 nonprofits, deploying 5,458kW of solar and offsetting 136,049 metric tons of carbon dioxide. These projects are reducing emissions, offering solar and energy storage education to the community, supporting green jobs and allowing nonprofits to save money on utility bills that are reinvested into their missions.

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In recent months we have supported over 20 projects across nine states. The projects range from educational facilities to food pantries, affordable housing and more. Collectively, these projects equate to 853.25kW of solar power, have supported countless green jobs and will reduce the use of dirty energy contributing to climate racism and the climate crisis for decades to come.

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There are always more solar projects to fund. If you know of a foundation, philanthropist or company interested in supporting the Solar Moonshot Program, further expanding our impact, please reach out to maya@hammondclimatesolutions.com.

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New Electric Bike Program

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We are excited to be taking part in our fourth electric bike (e-bike) program. This program, in partnership with De Anza College, Cupertino Rotary and BQuest Foundation, will benefit low-income students at De Anza College. The e-bike loaner program will allow students to get to and from the college more easily and provide them with a reliable form of transportation while simultaneously reducing their carbon footprint. The college will be launching this loaner program with 23 e-bikes and we look forward to seeing how the student body benefits as well as how many vehicle miles are offset by the e-bikes!

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Electric Vehicle Charging Infrastructure

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While there are many public funds available for electric vehicle charging infrastructure, the process of applying for them and ultimately securing them can be daunting and burdensome for nonprofit organizations with little resources.

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We have helped the BQuest Foundation secure rebates from the California Electric Vehicle Infrastructure Program (CALeVIP), which when paired with the foundation's grants, brings EV charging stations to nonprofit organizations serving communities at zero cost to the nonprofit.

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Our efforts this year have helped secure $42,000 in rebates for nonprofits serving communities of concern across the region and EV charging installations for three nonprofits have been installed or are close to being installed.

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Looking Forward

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In addition to continuing our climate advocacy and policy efforts, climate advising and existing climate programs like the Solar Moonshot Program and our e-bike programs, we plan to expand the Fossil Fuel Free Pledge to other focus areas as well. We’ll be sharing details on other programs for 2023 in the coming weeks, some of which will serve as pilot programs and proof of concept to lay the foundation for bigger programs for cities, community choice programs and legislation.

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Connect with us on social media (Facebook, LinkedIn, Instagram and Twitter) and to ensure you receive updates in the future, sign up for our newsletter.

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We look forward to working with all of you in 2023 to create a more just and livable future!

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Californians rally across the state to show support for rooftop solar

Policy

December 1, 2022

min

Californians rally across the state to show support for rooftop solar

On December 1, hundreds of Californians across the state rallied, presumably one last time, to show their support for rooftop solar ahead of the California Public Utilities Commission's December 15 meeting, where they will vote on an anti-solar proposal.

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Over the course of two years, the California Public Utilities Commission (CPUC) has had a proceeding open to make changes to the state’s net energy metering (NEM) program, with the investor-owned utilities and their surrogates on one side of the isle advocating for drastic cuts to the benefits rooftop solar customers receive while environmental and climate justice organizations, schools, churches, nonprofit organizations, unions, Community Choice Energy providers, consumer protection groups and others on the opposite end advocating to keep rooftop solar growing in California and to make it more accessible.

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In December 2021, the CPUC released a proposed decision that included a fee for solar which essentially taxed solar customers simply for having solar interconnected to the grid (and providing local clean energy) and included retroactive changes to current solar customer agreements. Thankfully, our coalition of over 600+ organizations across the state representing millions of people put enough pressure on both the CPUC and Governor Gavin Newsom, which caused the governor to publicly tell Californians that the proposal needed more work. Since then, our coalition has continued to hold numerous rallies, call in to several CPUC voting meetings to make public comments (with some public comment periods lasting over seven hours), hold meetings with elected officials and submitting letters to Governor Newsom.

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Finally, last month, the CPUC released their anxiously awaited revised proposed decision, which is still way too extreme and would send solar off of a cliff. The proposal includes a dramatic 75 percent reduction to the credits customers receive for sharing their excess energy with their neighbors. Cutting these credits means solar will not pencil out for nonprofits, schools, churches and working class families across the state. In San Diego where we pay the highest rates in the nation for energy, rooftop solar is the only way for working class families to alleviate the burden of skyrocketing energy costs. Solar and storage is a clean way to provide reliable backup power when the utilities cut off power, which is happening more and more frequently, helping families maintain needed medical equipment while avoiding potentially wasting perishable food.

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At the San Diego solar event today, one of 10 in the state held at 11 a.m., activists and solar installers who are concerned over their jobs rallied in front of St. Stephen’s Church of God in Christ, a church that has been a pillar of the community that has just recently installed solar panels to help with the cost of energy bills and be able to reinvest money back into the community. Pastor Glenn McKinney spoke to the CPUC and state leaders directly, “We should be gathering at churches like ours to celebrate going solar, not having to ask state leaders to halt their efforts to make solar less accessible to everyone, especially communities of concern and nonprofit organizations.” He continued by sharing why it's important for rooftop solar to remain an option for communities of concern. “We do not have a robust tree canopy like some communities and it’s getting hotter and hotter here in San Diego where we pay the highest energy rates in the nation. Without rooftop solar, we have no other options than to pay for expensive energy that’s making fossil fuel companies and their shareholders a lot of money while San Diegans are forced to choose to pay their energy bill or medicine or food”.

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The CPUC will vote on the proposal on December 15 and our coalition knows the power we have when we stand together and make our voices heard. Please visit helpcleanenergy.org to see how you can help!

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Senator Schumer discussing the Inflation Reduction Act in public

Breaking Down the Clean Energy Incentives in the Inflation Reduction Act

Policy

October 1, 2022

min

Breaking Down the Clean Energy Incentives in the Inflation Reduction Act

Last month President Joe Biden signed a bill that secured the largest investment in the United States’ history to combat climate change and invest in clean technologies. An analysis of the bill from Senate Democrats predicts that the bill will help the United States lower greenhouse gas emissions by about 40 percent by 2030.

The Inflation Reduction Act is 730 pages of not-so-easy to read legislation with topics covering healthcare, energy, electric vehicles, corporate taxes and more. Keeping in mind that reading through federal legislation is time consuming and may not be easy to understand, this blog will break down the key points relating to clean energy from the Inflation Reduction Act from the information that’s available at this time.

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‍Changes to the investment tax credit ‍

The tax credit that’s received for installing clean energy technologies has now increased from 26 percent back up to 30 percent and will be in effect until 2032. The tax credit will be available for both residential and commercial projects installed this year and moving forward. The investment tax credit will decrease to 26 percent in 2033 and 22 percent in 2034.

The biggest change relating to the tax credit is that it includes a direct pay provision for a nonprofit or a state, local or tribal government. Previously, those entities were not able to use the tax credit available so often entered into power purchase agreements or leases to utilize the tax credit. We are excited for our nonprofit Solar Moonshot Program participants, which will now be able to utilize direct pay and own their systems outright from the day their rooftop solar power systems are energized. Unfortunately, residential customers are not eligible for the direct pay provision, however, residential customers who do not have the tax appetite to make use of the tax credit, are now about to transfer or sell the credits.

There are also a number of adders that may increase the percentage of the tax credit. An additional 10 percent is available if the system is installed in an area with significant fossil fuel extraction or a brownfield. Another additional 10 percent is available for using domestic materials, which requires all steel and iron to be sourced from the United States and 40-55 percent of the value of manufactured products to be from the United States. Finally, an additional 10 percent adder is available for solar projects that sell their electricity via community solar to low income households. The adders are also stackable meaning if a project has the 30 percent tax credit, a 10 percent adder for domestic materials, a 10 percent adder for being located in a fossil fuel community and another 10 percent for being a community solar project, the tax credits could potentially reach up to 60 percent of the total system cost.

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‍Prevailing wage and apprenticeship requirements ‍

New employment requirements exist for large clean energy projects 1MW or more. In order to be eligible for the standard 30 percent tax credit, workers installing solar projects must be paid prevailing wages and be part of an electrical apprenticeship program. Violations will not only result in projects unable to claim up to 24 percent of the 30 percent tax credit but also heavy fines of $5,000 for each worker who is underpaid. Furthermore, if the inability to meet the wage requirements is found to be intentional, the fine will double to $10,000 per worker. ‍‍

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‍Additional incentives and information‍

There are many other investments in the bill including tax credits for electric vehicles, electrical panels and more. There are also details that are not determined yet, for instance about the time it will take for direct pay to be paid out, which we’ll update you on as the information becomes available. Sign up for our newsletter to be notified when part two of this blog, which will dive into transportation investments, is available.