Proposition 4 Climate Bond Allocations for the Next Four Years

Prepared by the BKF Grants and Funding Team 

The 2024 Proposition 4 Climate Bond (Prop 4) allocates $10 billion across various categories to address climate resilience and natural resources related projects in California. This substantial investment underscores California’s commitment to combating climate change through targeted and actionable strategies designed to bolster community preparedness, protect environmental resources, and enhance sustainability across the state.

Early grant opportunities from multiple California agencies are now available or imminent, creating a timely and critical window for communities and organizations to align their projects with California climate priorities. Read on to find a list of all of the proposed Proposition 4 Climate Bond allocations for both the next four years, and future pending opportunities.

The following list includes the agencies currently accepting applications or preparing forthcoming funding rounds:

---

Urban Centers – Infrastructure, Extreme Heat, and Clean Energy

Under the Proposition 4 Climate Bond, urban areas are the focus of initiatives that address infrastructure upgrades, energy resilience, and urban heat mitigation.

Clean Energy Initiatives

• Funding: $275 million (2025-26)

• Projects: Local grid reliability through energy storage, load flexibility, and long-duration battery storage

• Status: Active, ongoing solicitations expected

• Equity Focus: Projects in disadvantaged communities are prioritized

• Official Info: California Energy Commission

Extreme Heat Mitigation

• Funding: $102 million (2025-26)

• Projects: Urban greening, tree planting, park and schoolyard shading, and cool pavements

• Status: Forecasted, guidelines expected late 2025

• Equity Focus: High priority for disadvantaged and urban heat-vulnerable communities

• Official Info: CNRA Urban Greening Program

BKF Grants Pro Tip: Clearly link your proposal to measurable urban cooling benefits or grid reliability improvements. Utilize California Natural Resources Agency (CNRA) and California Energy Commission (CEC) technical assistance early.

---

Coastal Communities – Sea-Level Rise, Flooding, and Habitat Restoration

Under the Proposition 4 Climate Bond, coastal resilience funding is directed towards projects that protect communities from rising seas, flooding, and ecosystem degradation.

Coastal Resilience and Sea-Level Rise

• Funding: $173 million (2025-26)

• Projects: Wetland restoration, shoreline protection, infrastructure adaptation

• Status: Currently open (rolling basis)

• Equity Focus: Prioritized funding for projects benefiting vulnerable coastal populations

• Official Info: State Coastal Conservancy Climate Ready Program

Dam Removal and Habitat Connectivity

• Funding: $8.5 million (2025-26)

• Projects: Removing outdated dams, enhancing ecological connectivity and fishery restoration

• Status: Forecasted, guidelines expected by late 2025

• Equity Focus: Projects enhancing ecological and community resilience prioritized

• Official Info: Wildlife Conservation Board

BKF Grants Pro Tip: Integrate your project clearly with local coastal adaptation plans and document ecosystem benefits thoroughly.

---

Rural Counties – Wildfire, Water Security, and Biodiversity

Under the Proposition 4 Climate Bond, rural communities are supported through funding aimed at wildfire prevention, forest management, water management improvements, and biodiversity conservation.

Biodiversity and Nature-Based Solutions

• Funding: $286 million (2025-26)
• Projects: Habitat restoration, biodiversity protection, and watershed improvement
• Status: Open, pre-applications starting April 22, 2025
• Equity Focus: Projects benefiting disadvantaged rural and tribal communities are prioritized
• Official Info: Wildlife Conservation Board

Wildfire and Forest Resilience

• Funding: $325 million (2025-26)
• Projects: Fuel management, forest thinning, defensible space, and community wildfire planning
• Status: Upcoming, solicitations expected late 2025
• Equity Focus: High priority for disadvantaged rural areas and tribal communities
• Official Info: CalFire Wildfire Grants

Water Resilience

• Funding: $1.074 billion (2025-26)
• Projects: Dam safety upgrades, flood control, groundwater recharge, and drought mitigation
• Status: Upcoming, pre-applications recommended by mid-2025
• Equity Focus: Prioritized projects in regions with disadvantaged communities
• Official Info: Department of Water Resources

BKF Grants Pro Tip: Strong proposals demonstrate robust planning, community engagement, and clearly articulated ecological and socio-economic benefits.

---

Purpose	Bond Total	2025-26	2026-27	2027-28	2028-29	Pending
Safe Drinking Water, Drought, Flood, and Water	$3,800	$1,074	$972	$819	$925	$10
Wildfire and Forest Resilience	$1,500	$325	$376	$214	$496	$89
Coastal Resilience	$1,200	$173	$129	$190	$708	—
Biodiversity and Nature-Based Climate Solutions	$1,200	$286	$136	$165	$512	$101
Clean Energy	$850	$275	$229	$3.0	$21	$323
Park Creation and Outdoor Access	$700	$286	$117	$42	$23	$231
Extreme Heat Mitigation	$450	$102	$172	$152	$24	—
Climate Smart Agriculture	$300	$134	$84	$15	$7	$60
Totals	$10,000	$2,655	$2,215	$1,600	$2,716	$814

The Governor’s proposal allocates about 27% of the total bond funds ($2.7 billion) in the 2025-26 fiscal year, with varying percentages across categories. Some allocations, totaling $814 million, remain pending and await further legislative input or program development.

---

Recommended Action Steps for Public Agencies:

• Immediately schedule advisory consultations with state funding agencies.
• Prepare pre-application materials promptly to enhance competitive positioning.
• Leverage BKF’s expertise at all stages for strategic advice, grant preparation, and submission support.
• Prioritize projects that are shovel-ready for a higher likelihood of success.
• To stay competitive, agencies should take immediate steps to prepare and position their projects for Prop 4 funding.

The BKF Grants and Funding Team is strategically positioned to guide your agency through these transformative funding opportunities.