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$25 million for the Healthy Forest program, which preserves existing forests by reducing the threat of wildfires by reducing fuels, removing dead trees, and providing long-term protection to forest land; $20 million to help individuals in low-income communities reduce their energy use with weatherization and energy efficiency improvements, including solar installations; i $15 million to continue the successful Urban Forestry program, which helps urban disadvantage communities plant trees in their neighborhood; $10 million for the Active Transportation Program to fund bicycle and pedestrian programs that make walking or biking to school and work safer and easier; $7.5 million for the Healthy Soils program, to establish innovative farming practices that capture carbon, reduce water use and improve soil health; i $7.5 million to continue the successful State Water Efficiency and Enhancement Program (SWEEP) which helps replace older inefficient water irrigation and pumping equipment with new state-of-the-art replacements that pollute less and save water; I. $25 million for the Healthy Forest program, which preserves existing forests by reducing the threat of wildfires by reducing fuels, removing dead trees, and providing long-term protection to forest land; $5 million to reduce black carbon emissions by supplementing successful local programs to reduce wood smoke pollution through fireplace, stove, and heater replacement; $2 million to assist disadvantaged communities and local governments with developing climate action plans. Transportation Infrastructure Funding There were many different transportation proposals put forward during the legislative session, including two different proposals by the Democrats, a proposal by the Republicans, and a proposal by the Governor; however, none of the various could garner the two-thirds support needed for passage before the adjournment of the legislative session. The inability to get a two- thirds vote was largely due to the Republicans opposition to any new revenue raised through tax or fee increases. At the end of the legislative session in August, there was discussion by legislative leadership about possibly calling a lame -duck session after the November election to deal with transportation. Ultimately, a lame -duck session was not called, but the Governor, Pro Tem, and Speaker issued a joint statement reaffirming their commitment to finding a solution for long-term transportation funding. To that end, Assembly Member Frazier and Senator Beall each introduced a transportation funding proposal as the first bill introduced in their respective House this session and the Governor has included a transportation proposal as part of his January budget. Looking Ahead The deadline to introduce bills in the first year of the 2017-18 legislative session is February 17, 2017. It is anticipated, that once that deadline passes, nearly 3,000 bills will be introduced and eligible for consideration in 2017. It is likely that many of the items that were unsuccessful last year will be reintroduced this year, in addition to the new bills that will be brought forward on a host of issues. One new dynamic that is already being felt in Sacramento, is the new tenor of the relationship between California and the Trump Administration. Legislative leaders and the Governor have -- - already shown their -willingness -to-confront the new President on many of his priorities -that could 2016 Year End Legislative Update February 13, 2017 19E-6 4 EXHIBIT 1