Insufficient Investment - California Climate and Energy Collaborative

Barrier 1: Insufficient Investment

Barrier Statement

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

Filterable Database

How communities are experiencing this barrier

View the details on what communities have shared with SLECC from across the state.

Key challenge discussed in - Los Angeles

Local hyper self-governance (e.g., LA County’s 88 cities, 55 water utilities) creates competition and uneven resource distribution.

Key challenge discussed in - Los Angeles

Arbitrary funding caps (e.g., 15% state limits) disadvantage large states like California.

Key challenge discussed in - Los Angeles

Funding often insufficient to meet needs—resources are spread too thin with little lasting impact.

Key challenge discussed in - Los Angeles

Rising construction, labor, and insurance costs outpace grant allocations, requiring supplemental funding.

Key challenge discussed in - Los Angeles

Declining traditional revenues (e.g., gas tax) strain core services like transportation and tree maintenance.

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 Solution

Design simplified local programs with easy access to funding.

Existing Examples of Progress:

Further Progress Pathways

Region(s): Los Angeles

Local Solution

Use prepaid bonds to cut financing costs

Existing Examples of Progress:

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

Further Progress Pathways

Region(s): Los Angeles

Local Solution

Use guaranteed mini-grants to unlock local implementation.

Existing Examples of Progress:

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.

Further Progress Pathways

Region(s): San Diego

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.

State Solution

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

Existing Examples of Progress:

Further Progress Pathways

Region(s): Los Angeles

State Solution

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

Existing Examples of Progress:

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

Further Progress Pathways

Region(s): Los Angeles

State Solution

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

Existing Examples of Progress:

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

Further Progress Pathways

Region(s): Los Angeles

Solution Spotlight

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Additional Resources

Please share any additional resources you would like to include by emailing eecoordinator@civicwell.org.