Funding Access and Capacity Building - California Climate and Energy Collaborative

Priority Area: Funding Access & Capacity Building

The ability for local community serving organizations to plan and implement energy, climate, and land use efforts that can help communities thrive and avoid the worst impacts of climate change depends intrinsically on the availability of investments and assistance, which is often made available from state and federal agencies and others in the form of grants and technical assistance. What emerges from almost every constructive conversation with hundreds of locals across priority areas is the fundamental need to deploy available assistance in a way that is more accessible, flexible, and reliable.

A report titled “Better Funding,” published in 2024 synthesized and catalogued themes gathered over years of active input generously given by community-serving practitioners regarding funding access and deployment. It suggests California take stock of lessons learned from recent federal and state windfalls to reimagine and reform funding deployment before the next big infusion. It also suggests ways State and federal agencies can better deploy the dollars needed to avoid the worst impacts of climate change including nearly 70 ideas for way that State and federal agencies can tune up traditional funding vehicles, largely comprised of competitive grants. These ideas cover different stages of the grantmaking process and range from basic to bold, such as streamlining program design engagement, simplifying applications, and options for more effective technical assistance. To unlock local and tribal potential at the scale and speed needed, and with minimal burden, the report proposes piloting a new, potentially ideal approach to funding deployment. This approach pairs a State-led funding queue (Investible Climate Communities) with regional-based engagement and project scoping support (California Regional Energy and Climate Hubs (REACH)).

In 2025, the availability of publicly subsidized assistance is dramatically contracting due to the policies of the new federal administration and budgetary deficits within CA. There are a myriad of policy movements that are already in play or that could be proposed in CA that could either create and sustain or, sadly, damage and dismantle in-State climate funding sources.

What’s Working

There are currently billions of dollars that have been statutorily dedicated to energy, climate and land use funding and technical assistance programs in California. The largest and most recurring sources are from the 1) CPUC’s Public Purpose Charge, a small surcharge on California ratepayer bills that is used to subsidize energy efficiency and other programs (~$2B/year) and 2) Greenhouse Gas Reduction Fund, which uses cap and trade auction proceeds to fund emission reduction efforts, including over 100 programs through the California Climate Investments programs overseen by CARB (~$4B/year). In budget surplus years, policymakers also dedicated additional dollars to climate efforts like a new CEC’s Equitable Building Decarbonization program. In 2024, legislators adopted XX which led to voter approval of Proposition 4, a one-time “Climate Bond,” which will infuse $10 billion over X years for climate projects, including up to . Given the changes in federal investments, retaining these sources are critical, but decisions being made at the executive and legislative level are placing each of the investments at risk.

At the 2025 CCEC Forum, opening plenary speakers and poll respondents shared positive progress resulting from strong federal and state investments in the last few years including on electric vehicle infrastructure, heat pumps, and reach codes. State and local participants regularly share that a key co-benefit and lesson from good investments years is the power of collaboration. Many of the grants in the last few years encouraged regional and collaborative approaches, and organizations are working to sustain and strengthen collaborative models and connections. The Regional Climate Collaboratives program awarded in 202X funded funding and technical assistance capacity. And while implementation continues to lag, a great deal of progress has been made in plans that are inclusive and integrate science. Participants also shared that funding did support new capacity, including in rural, hard-to-reach and disadvantaged communities.

There are efforts within agencies to streamline funding deployment and improve technical assistance. For example, at SGC, staff have created a technical assistance toolkit for agencies and are evaluating program guidelines and process for especially challenging competitive grants like the Transformative Climate Communities, which received funding via the Greenhouse Gas Reduction Fund and Prop 4. There are many other examples of funding deployment innovations and best practices in Better Funding.

Over 60 cross-sector proponents of accessible assistance deployment have come together informally through the “Statewide Funding Solutions Workgroup,” which meets bi-monthly to explore relevant models, research, and policy pathways that can steward bold transformation of funding deployment in CA.

Barriers & Solutions

To achieve the desired future outlined above, California will need to accelerate climate action across CA. Participants share that several key barriers impede progress and require further attention, as detailed below: Insufficient Investment, Unstable Assistance, State & Federal Funding Priorities, Application Burden & Accessibility, Political, Economic & Structural Risks and Capacity Building. On the left, toggle through these barriers to view details about challenges experienced across the state and solution opportunities at the state and local level.

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Significant budget and funding constraints at local, state and federal levels prevent adequate investments and capacity in needed energy, climate and land use strategies.

Insufficient Investment Challenges

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Local Solution Opportunities

SLECC stakeholders have brainstormed the following solution opportunities that can be taken by local leaders. Existing examples of progress or pathways to make further progress are highlighted if known.

Local or State

Solution

Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Design simplified local programs with easy access to funding.

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Solution

Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Use prepaid bonds to cut financing costs

Clean Power Alliance: Implementing prepaid bonds to cut financing costs.

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Solution

Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Use guaranteed mini-grants to unlock local implementation.

San Diego Community Power – Member Agency Grants. Flexible $50k per member city, usable for local climate/energy priorities—shows how small, guaranteed allocations can overcome capacity bottlenecks.

State Solution Opportunities

SLECC stakeholders have brainstormed the following solution opportunities that can be taken by state leaders. Existing examples of progress or pathways to make further progress are highlighted if known.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Advocate to remove federal funding caps (e.g., 15% max per state).

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Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Scale up existing state programs like the Climate Catalyst Fund for larger community investments.

USC Credit Union (CDFI): Awarded funds under CCIA to create community-serving lending products (paused due to federal freezes)

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Expand CA’s I-Bank into a full public bank to hold deposits and finance climate/housing projects.

Public Banking: Local and state-level banks to recycle public dollars into community priorities (affordable housing, climate, infrastructure) and cut Wall Street fees.

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Existing Examples of Progress

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State Solution

(Type of Activity: Program Implementation and Outreach )

Encourage faster disbursement of climate funding at the local/regional level to maintain momentum.

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State Solution

(Type of Activity: Policy/Regulation )

Support local-first funding mechanisms (revolving loan funds, community finance tools).

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Existing Examples of Progress

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State Solution

(Type of Activity: Program Implementation and Outreach )

Funding should flow to the region broadly and be redistributed by trusted local intermediaries who understand community needs, avoiding competition between organizations.

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Existing Examples of Progress

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State Solution

(Type of Activity: Program Implementation and Outreach )

Invest in evidence-based engagement – Expand resources for community engagement models that are grounded in research and proven effective.

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Existing Examples of Progress

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State Solution

(Type of Activity: Program Implementation and Outreach )

Align and coordinate funding streams. Establish a climate funders forum with regional subgroups to connect public and private dollars, share unfunded proposals, and expand pooled funding opportunities by aligning state department processes with philanthropic partners to avoid duplication and maximize impact.

San Diego Foundation – Cross-border and trust-based philanthropy – Shared lessons from the Tijuana River pollution project and broader philanthropic programs that pool resources across nonprofits and local jurisdictions. The Foundation is moving toward trust-based philanthropy with fewer barriers and deeper community participation.

Solution Spotlight

No results found.

Fluctuations in federal and state politics and budgets result in funding and technical assistance opportunities for local and place-based efforts that are often offered on a one-time basis and do not recur at predictable intervals, and are not reliably available.

Insufficient Investment Challenges

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Local Solution Opportunities

Local or State

Solution

Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Align and Leverage regional funding sources (utilities, philanthropy, county-level funds, public/private partnerships).

Habitat for Humanity LA: Supplemented TCC support for a veteran outside project boundaries by leveraging Habitat resources.

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Solution

Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Explore innovative revenue sources: retail electricity tax, mileage-based road fees, resilience taxes.

State Solution Opportunities

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Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Create supplemental funding pools at the state level to cover geographic/income gaps.

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Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Ensure Prop 4 funds deliver direct community benefit, avoid duplication, and replace lost federal funding quickly.

Proposition 4 (Prop 4): Billions in new climate and resilience investments (housing, transportation, community resilience centers, transformative climate communities, extreme heat programs).

Local or State

Solution

Existing Examples of Progress

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State Solution

(Type of Activity: Construction/Installation/Procurement )

Enable carbon credit monetization by certifying local projects for voluntary carbon markets.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Explore new funding opportunities for declining revenue sources

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Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Increase flexibility in earmarked funding. Introduce and pass legislation that allows state dollars to be repurposed more flexibly to fill gaps created by federal funding losses.

Solution Spotlight

No results found.

State and federal funding priorities often misalign with local needs, favoring rigid rules, reactive approaches, and shifting policies that undermine innovation, certainty, and community-driven solutions.

State & Federal Funding Priorities Challenges

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Local Solution Opportunities

No results found.

State Solution Opportunities

Local or State

Solution

Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Shift from reactive (disaster recovery) to proactive (prevention) funding strategies.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Increase risk tolerance in state funding to allow innovation and faster deployment.

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Solution

Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Incentive alignment: Better align funding priorities across federal, state, regional, and local stakeholders to reduce conflicts.

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Existing Examples of Progress

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State Solution

(Type of Activity: Program Implementation and Outreach )

Ensure funding supports both infrastructure and programming (e.g., upgrades + community education).

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Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Maintain policy consistency to avoid “policy whiplash.”

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Existing Examples of Progress

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State Solution

(Type of Activity: Program Implementation and Outreach )

Use civic engagement processes to clarify community priorities before funding decisions.

Solution Spotlight

No results found.

Competitive public grant applications are overly complex, confusing, and inflexible pass/failprocesses that are oversubscribed with little standardization, extracting limited organizational capacity that could be used for action while creating prohibitively high costs and low success probabilities that discourage resource-constrained organizations from attempting to apply.

Application Burden & Accessibility Challenges

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Local Solution Opportunities

Local or State

Solution

Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Connect planning grants to implementation funding locally (stepwise model).

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Existing Examples of Progress

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Local Solution

(Type of Activity: Policy/Planning/Land Use )

Sub-granting: Larger local nonprofits or governments administer funds and redistribute to smaller CBOs.

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Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Policy/Planning/Land Use )

Create flexible local grant programs (e.g., smaller starter grants for emerging groups).

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Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Policy/Planning/Land Use )

Standardize regional measurement and data collection – Establish common frameworks across jurisdictions to reduce duplication and ensure consistency in evaluating program effectiveness.

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Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Community Program Implementation )

Community-led reporting formats – Advocate for the use of narrative, oral, or visual storytelling to share outcomes in ways that are accessible and reflect community priorities.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Community Program Implementation )

Regular coordination forums – Jurisdictions, project leads, and partners should meet on a monthly or quarterly basis to share updates, align timelines, and reduce duplication.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Community Program Implementation )

Track subregional staff capacity & funding to target support. Document disparities, then focus resources where staffing is thinnest.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Community Program Implementation )

Resource CBO engagement benches. Create/maintain rosters of equity-driven CBOs and resource their ongoing engagement, so agencies can contract quickly and equitably.

State Solution Opportunities

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Streamline and simplify applications and reporting through a faster, common-application model. Pilot a unified application within SGC—then scale statewide—to reduce administrative burden, improve visibility into opportunities and unfunded proposals, and create a more accessible, transparent funding system.

SGC and its Connecting Communities Initiative are exploring ways to reduce these administrative burdens while increasing access for under-resourced communities

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Provide flexible, early-stage capital and grant structures that enable local organizations to scope, design, and test community-driven projects before full grant cycles open. Establish tiered funding pathways—from planning to readiness to implementation—to support continuous project development and ensure smaller or emerging organizations can build capacity and compete for larger opportunities over time.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Resource community leadership and engagement. Provide stable funding for community liaisons, prioritize community-designed projects, and ensure multilingual, culturally relevant processes. Use accessible formats like dashboards, videos, and storytelling to engage residents meaningfully.

Casa Familiar – San Ysidro green and housing projects – Casa Familiar secured a Community Resiliency award for what is described as “the greenest project the city of San Diego has seen,” alongside an innovative rent-to-own affordable housing model. These demonstrate the potential of community-driven project leadership and advocacy for “extra points” in funding processes. The Strategic Growth Council and CCEC has prioritized streamlining and improvement engagement, technical assistance and funding to communities, including through SGC Priority 3 and the "Better Funding" report, which aims to reform traditional grant processes to make them easier and more accessible.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Provide state-funded technical assistance (TA) and feedback to all applicants, even unsuccessful ones.

SGC’s Connecting Communities program provides technical assistance to help local orgs align state and federal funding.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Adopt flexible block-grant funding models. Replace competitive grants with formula-based or COG-administered block grants, provide upfront or multi-round allocations, and simplify processes through standardized applications, common reporting formats, and advanced payments to give jurisdictions stability for multi-year planning.

Proposition 4 implementation – $10 billion for climate infrastructure (urban forestry, greening, fire mitigation, water improvements, etc.). Agencies are working to avoid duplication, reduce application burdens, and expand community input in program design, led by the California Natural Resources Agency (CNRA).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Invest in sustained regional infrastructure. Fund long-term regional hubs, collaboratives, and existing organizations that know local players, can route resources quickly, and provide continuous technical assistance, rather than relying on short-term contracts.

SGC’s CASE Portfolio (RCC + Tribal Capacity Building). Regional Climate Collaborative grants help partners build governance/partnership structures and write grants; Tribal Capacity Building supports tribal entities with targeted TA and funding Thriving Communities Technical Assistance Center (EPA Region 9). Network provides grant support, translations, trainings, and ongoing one-on-one TA—an example of funding relationship infrastructure.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Provide sustained technical assistance and partnerships. Ensure smaller jurisdictions and CBOs receive long-term support for data collection, communication, and grant writing, and activate universities as partners for evaluation and technical expertise.

EPA’s Thriving Communities TA program – Provided grant reviews, translations into plain language, tracking of opportunities, and training to hundreds of organizations in Region 9. Identified as a successful model of broad, accessible TA before its termination. SGC’s CACE portfolio – Includes Regional Climate Collaborative, Tribal Capacity Building, BOOST, and TCC programs. These initiatives support partnerships, governance structures, and full lifecycle capacity building (from partner identification through implementation).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Use advanced pay for grants where possible to help smaller CBOs manage cash flow.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Use hackathon-style innovation to modernize grant interfaces and back-end systems.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Lengthen grant application windows and reduce administrative burden (shorter applications, fewer attachments)

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Establish a centralized, statewide funding dashboard/portal for opportunities, allocations, and impacts.

UCLA Luskin Center: Developing a TCC data dashboard to share findings and identify what is working/not working across grants.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Reframe CA grant applications in federal-friendly categories (e.g., workforce development, disaster preparedness).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Harmonize eligibility criteria across state programs (e.g., TCC, solar, CalEnviroScreen).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Support community-driven evaluation (local input into defining metrics for state-funded programs).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Collect and publish case studies (e.g., TCC early rounds) for replication.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Support replication of successful best practices across cities and counties.

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Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

State should modernize/streamline a grant portal for all funding, centering equity.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Create a statewide application repository so unsuccessful proposals can be resubmitted across funding rounds

Solution Spotlight

No results found.

When outdated tax systems, fragmented governance, and political or financial mistrust shape funding, communities face unstable revenues and limited access to resources needed for long-term solutions.

Political, Economic & Structural Risk Challenges

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Local Solution Opportunities

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Policy/Planning/Land Use )

Involve policymakers in practical, ground-level discussions

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Policy/Planning/Land Use )

Encourage frontline workers/community leaders to run for office

State Solution Opportunities

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Construction/Installation/Procurement )

Develop state-backed insurance programs to lower costs of climate-related programs (e.g., e-bike fleets).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Push for equitable funding distribution within CA (avoid dominance by LA County and other large jurisdictions).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Address jurisdictional fragmentation (88 cities, multiple overlapping districts in LA County).

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Encourage inter-agency and inter-organizational collaboration at the regional level.

Solution Spotlight

No results found.

Capacity Building Challenges

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Filtered Database

Local Solution Opportunities

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Community Program Implementation )

Lean on regional conveners/collaboratives to run grants and assemble teams.

San Diego Regional Climate Collaborative and foundations acting as “regional convening facilitators” to lead multi-partner funding efforts.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

Local Solution

(Type of Activity: Policy/Planning/Land Use )

Local convenings with residents and CBOs – Organize regular convenings that bring together community members, local organizations, and governments to align priorities and strengthen trust.

California Climate & Energy Collaborative (CCEC) & tribal initiatives – Programs like the Tribal Energy and Climate Collaborative, Tribal Capacity Building Program, and Tribal Climate Health Project reduce burdens on local/tribal partners and foster peer knowledge exchange.

State Solution Opportunities

Local or State

Solution

Existing Examples of Progress

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State Solution

(Type of Activity: Policy/Regulation )

Support regional capacity building by investing in local organizations that understand the unique needs of San Diego as a border region.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Policy/Regulation )

Invest in subregional capacity and representation. Strengthen staffing and project support at the subregional level to reduce inequities between large urban jurisdictions and smaller communities, while ensuring underinvested and vulnerable communities have a formal role in decision-making rather than being sidelined in state-led processes.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

State-led convenings – Organize regional and local convenings where residents, CBOs, and multiple levels of government can share needs and priorities, avoiding fragmented engagement tied to individual projects.

Local or State

Solution

Existing Examples of Progress

Further Progress Pathways

State Solution

(Type of Activity: Program Implementation and Outreach )

Dedicated tribal representation – Fund tribal representatives at each reservation to ensure consistent participation in state and regional planning processes.

Solution Spotlight

No results found.