Investment Targets Established by SB 535

In 2012, Senate Bill (SB) 535 (Chapter 830, Statutes of 2012) set minimum investments for projects that benefit disadvantaged communities and projects that are located within disadvantaged communities. SB 535 required that a minimum of 25 percent of California Climate Investments are allocated to projects that provide benefits to disadvantaged communities, and a minimum of 10 percent are allocated to projects located within and providing benefits to disadvantaged communities.

In 2016, Assembly Bill (AB) 1550 (Chapter 369, Statutes of 2016) amended the investment minimums for disadvantaged communities introduced by SB 535 to require that a minimum percentage of projects be located within and provide a benefit to disadvantaged communities. AB 1550 also established new investment minimums for low-income communities and low-income households.

When reporting California Climate Investments’ benefits to priority populations, administering agencies follow CARB’s Funding Guideline requirements as directed by the legislature. Projects that were awarded funds prior to August 2017 were

subject to the investment targets established by SB 535, while projects awarded funds since then are subject to AB 1550’s investment requirements.

As nearly all projects implemented under SB 535 have concluded or are nearing completion, the 2025 Annual Report to the Legislature was the final year projects were reported under both SB 535 and AB 1550. All future projects will be subject to AB 1550 requirements unless otherwise noted.

As of October 2025, $2.3 billion has been implemented under SB 535 with 47% located in and benefiting disadvantaged communities, 16% located outside of and benefiting disadvantaged communities, and 37% benefiting other areas of California.