US ELECTIONS: California voters approve $10 billion climate bond

California voters overwhelmingly passed a ballot measure allowing the state to borrow $10 billion to fund environmental and energy initiatives aimed at addressing climate change impacts.

The Associated Press called the race at 10:07 a.m. Pacific Time on Nov. 6, at which time Proposition 4 was leading by 15.9 percentage points with 52.88% of the vote cast.

Prop. 4 authorizes the state to sell the bond to fund grants and loans to local governments, Native American tribes, non-profit organizations and businesses.

The lion's share of the money — $3.8 billion — is reserved for drought, flood and water supply projects, including dam repair.

Prop. 4 also includes $1.5 billion for forest health and wildfire prevention, $1.2 billion to restore and protect coastal areas exposed to sea-level rise, $1.2 billion for conservation and habitat restoration, and $850 million for energy projects.

Of the energy funds, $475 million will go toward offshore wind development and $325 million is pegged to grid infrastructure like long-distance transmission. The remaining $50 million is tied to energy storage.

Another $700 million will go to parks, while $450 million is slated to protect communities from extreme heat and $300 million is for farms and agriculture.

At least 40% of the total funds must be spent on activities that benefit lower-income communities and areas more exposed to climate change.

California's Democratic Party, which went into the election with control of the governor's office and both chambers of legislature, backed Prop. 4. Various labor and environmental groups also supported it.

The state's Republican party opposed it.

"Instead of burdening taxpayers with a bond that overpromises, we should tackle these issues in the budget," Senate Minority Leader Brian Jones (R-San Diego), along with Republican Assemblymember Jim Patterson and Jon Coupal, president of the Howard Jarvis Taxpayers Association, said in an argument against Prop. 4 included in official voter guides.

The opponents called the measure "reckless," citing California's growing bond debt and budget deficit.

But representatives of the Coalition for Clean Air, The Nature Conservancy and the Community Water Center said the measure included "efficient, sensible investments in proven solutions."

To repay the bond, California will spend about $400 million annually over 40 years, including interest, according to the state's non-partisan Legislative Analyst's Office. Inflation adjusted, the bond will cost about 10% more than paying for investments upfront, the office estimated.

Prop. 4 likely will provide net savings for local governments and could reduce state and local costs from disasters, the LPO said.