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

Plain English Breakdown

The bill does not specify exact dates or conditions for when grants can be applied for beyond requiring appropriation of funds by the Legislature and that projects face unforeseen costs after construction has started.

Infrastructure Gap-Fund Program for Local Agencies

This legislation requires the Office of Land Use and Climate Innovation to create a grant program that helps local agencies cover unexpected costs when building infrastructure projects, if funded by the Legislature.

What This Bill Does

• Creates an Infrastructure Gap-Fund Program within the Office of Land Use and Climate Innovation upon appropriation by the Legislature.
• Provides grants to local agencies for infrastructure projects facing unforeseen costs after construction has started.
• Limits grant funding to up to 20% of a project's additional projected cost, subject to certain conditions.
• Requires local agencies applying for grants to show they have allocated at least 45% of the initial budget using existing tax revenue and that they face challenges in completing projects on time and within budget.

Who It Names or Affects

• Local agencies seeking funding for infrastructure projects
• The Office of Land Use and Climate Innovation

Terms To Know

Infrastructure Gap-Fund Program

A grant program designed to help local agencies cover unexpected costs when building important public works.

Local agency

A city or county government entity responsible for managing and developing infrastructure within its jurisdiction.

Limits and Unknowns

• The bill only takes effect if the Legislature appropriates funds.
• Grant funding is limited to up to 20% of a project’s additional projected cost after construction has started.
• Local agencies must meet specific conditions, including allocating at least 45% of initial costs using existing tax revenue.

Official Summary Text

SB 74, as amended, Seyarto.
Office of Land Use and Climate Innovation: Infrastructure Gap-Fund Program.
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
to develop
for the development
and
construct
construction of
infrastructure projects, as
defined.
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
to
for at least 45% of
the
initial infrastructure’s project’s total cost.
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.

Current Bill Text

Download Bill PDF