Public resources: Greenhouse Gas Reduction Fund: programs.

Interest income earned on Greenhouse Gas Reduction Fund moneys is now required to be deposited into the fund, increasing available resources.

A new four-tier priority allocation structure for the Greenhouse Gas Reduction Fund takes effect in FY 2026-27: (1) state operations and administrative costs, (2) $1 billion to High-Speed Rail plus $1 billion reserved for the Legislature with specified uses including $125M for transit passes, $25M for a UC Climate Research Center, $15M for Topanga Park rebuilding, and $85M for climate technology innovation, (3) continuous appropriations of $800M for affordable housing/sustainable communities, $400M for rail capital, $250M for community air protection, $200M for low carbon transit operations, $200M for forestry/fire prevention, and $130M transferred to the Safe and Affordable Drinking Water Fund, (4) remaining amounts available for legislative appropriation.

A revised allocation structure takes effect in FY 2027-28 that removes the fixed 82.5%/17.5% split for forestry and fire prevention funding, giving Cal Fire flexibility to allocate its $200M between healthy forest programs and prescribed fire projects as needed.

The $800M Affordable Housing and Sustainable Communities allocation is now split between two administrators: $560M goes to the Housing Development and Finance Committee for affordable rental or owner-occupied housing, and $240M goes to the Strategic Growth Council for sustainable communities investments including reducing vehicle miles traveled.

The bill's appropriation status changed from 'no' to 'yes,' reflecting that it now makes actual appropriations of continuously appropriated fund moneys.

The High-Speed Rail Authority is prohibited from entering new funding commitments outside the Merced-to-Bakersfield segment except for environmental clearance, state operations, and up to $500M total for efficiency-maximizing activities. Any such spending requires a 60-day OIG cost-benefit analysis and 30-day legislative notification before grant approval.

The Department of Finance must provide budget subcommittees and the Legislative Analyst's Office with a detailed list of proposed state operations costs to be funded from the Greenhouse Gas Reduction Fund by January 10, 2027 and annually thereafter, including department, amount, positions, contracts, and budget change proposal name.

The School Energy Efficiency Stimulus Program is extended from December 1, 2026 to January 1, 2031. Non-committed funds must still be spent or returned by December 1, 2026, while funds committed as of August 31, 2026 have a longer runway: encumbered by December 1, 2028, liquidated by December 1, 2029, and returned by January 30, 2030.

The Department of Transportation (Caltrans) is authorized to provide administrative support for both the Transit and Intercity Rail Capital Program and the Low Carbon Transit Operations Program.