Transformative Climate Communities Round 6 PROJECT DEVELOPMENT Grant (FY 25-26)

Transformative Climate Communities Round 6 PROJECT DEVELOPMENT Grant (FY 25-26) is sponsored by Strategic Growth Council.

The TCC Program furthers the purposes of AB 32 (Nunez, 2006) and AB 2722 (Burke, 2016) by funding projects that reduce greenhouse gas emissions (GHG) through the development and implementation of neighborhood-level transformative climate community plans that include multiple coordinated GHG emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities.

The Transformative Climate Communities Program (TCC), established by AB 2722 (Burke, 2016), invests in community-led climate resilience projects in the state’s most overburdened communities. The program objectives are to reduce greenhouse gas emissions, improve public health and the environment, and support economic opportunity and shared prosperity.

TCC’s unique, place-based strategy for reducing greenhouse gas emissions is designed to catalyze collective impact through a combination of community-driven climate projects in a single neighborhood.

The Project Development Grants support disadvantaged communities by funding pre-development and basic infrastructure activities that advance the communities’ climate and community resilience goals and prepare them for future funding opportunities aligned with the TCC Program Objectives.

Project Development Grants should respond to previous community planning efforts that identified priority projects and need additional project development and basic infrastructure support funding to get ready for future resilience funding.

SGC developed this pilot grant type in Round 5 TCC in response to the expressed support gap between Planning and Implementation Grant funding and to meet communities where they are in their climate resilience efforts, and will continue it into Round 6.

Disadvantaged Unincorporated Communities (DUCs), Tribal Communities, Planning Grant Grantees, and Previous Implementation Grant Applicants will be prioritized for Project Development Grants, with DUCs given the most priority. TCC Implementation Grants and Planning Grants support holistic neighborhood proposals and planning activities, respectively, to advance community-led goals and projects.

Please see separate Grants Portal entries for information on Planning Grants and Implementation Grants. A wide variety of activities and costs can be funded through the grant. Please see the Round 6 Guidelines for a list of example eligible activities.

Multiple Co-Applicants are required. A diverse range of community, business and local government stakeholders must form a Collaborative Governance Structure to develop a shared vision of transformation for their community. Applicants must include community engagement activities and address climate resilience through the proposal.

Applicants may also address other transformative elements such as displacement avoidance and workforce development, if applicable. Applicants from Tribal Communities, Tribally-owned non-profits, and with Project Areas in Disadvantaged Unincorporated Communities are prioritized for Application Technical Assistance. July 31, 2026, is the priority deadline to request Application Technical Assistance via the TA Application Request Form.

Application TA services may be available to additional applicants depending on funding availability and TA provider capacity, after the July 31st deadline.

Transformative Climate Communities Round 6 Final Guidelines April 2026 # Transformative Climate Communities Program # Round 6 Program Guidelines Program information can be accessed at: https://sgc. ca. gov/grant-programs/tcc/ What is the Transformative Climate Communities Program?

The Transformative Climate Communities Program (TCC):  Empowers communities to choose their own strategies that achieve major environmental, health, and economic benefits while reducing greenhouse gas emissions.  Prioritizes California’s most disadvantaged communities.  Develops a shared community vision through partnerships formed in the Collaborative Governance Structure.

 Funds community-led development and infrastructure projects, such as energy efficiency upgrades, solar installation, urban greening, affordable and sustainable housing developments, transit access and mobility, health equity, community microgrids, and more.

 Provides the opportunity for advance payment to eligible 501(c)3 nonprofits, Federally and non-federally recognized California Native American Tribes, and Tribally-owned nonprofits. What activities does the TCC program fund? TCC funds three grant types: • Project Development Grants The number of awards per grant type and dollar amount will be determined in the Notice of Funding Availability.

How much funding is available? Approximately $98. 8 million from the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 , commonly known as the “Climate Bond,” was set Who is eligible to apply?

Lead Applicants must be a public or local agency, nonprofit organization, special district, joint powers authority, Tribe, Tribally-owned nonprofit, public utility, local publicly owned utility, or mutual water company. Applicants submit Application Requirements, outlined in Section 10 , through Submittable.

The tentative Round 6 timeline is: • Fall 2025: TCC staff release Draft Guidelines for public comment • Spring/Summer 2026: TCC staff release Final Guidelines and open applications • Spring/Summer 2027: Awards announced Transformative Climate Communities Round 6 Final Guidelines April 2026 • See Frequently Asked Questions in Appendix H of the Guidelines. • Visit https://sgc. ca.

gov/grant-programs/tcc/. • Contact Program Manager, Nicole Cartwright, nicole. cartwright@sgc.

ca. gov. • Email tcc@sgc. ca.

gov. Transformative Climate Communities Round 6 Final Guidelines April 2026 Transformative Climate Communities Program ................................................................ ........... 1 TCC At-A-Glance ................................................................................................

...................... 2 Table of Contents ................................................................................................ .....................

4 How to Use This Document ................................................................................................ ...... 9 Section 1.

Program Overview .................................................................................................. 10 1. 1 Background 🅟🅟🅟🅟🅟🅟 ................................................................................................

......... 10 1. 2 Program Summary 🅟🅟🅟🅟🅟🅟 ................................................................

............................... 12 1. 3 Program Objectives 🅟🅟🅟🅟🅟🅟 ................................................................

............................. 14 1. 4 Program Approach 🅟🅟🅟🅟🅟🅟 ................................................................

.............................. 14 1. 5 Investing in Priority Communities 🅟🅟🅟🅟🅟🅟 .........................................................................

15 1. 6 Funding Goals and Priorities 🅟🅟🅟🅟🅟🅟 ................................................................ ................

17 Section 2. California Native American Tribes and Tribal Applicants .......................................... 18 2.

1 Important Terminology ................................................................................................ .. 18 2.

2 Tribal Funding Goal 🅟🅟🅟🅟🅟🅟 ............................................................................................. 18 2. 3 Limited Waiver of Sovereign Immunity 🅟🅟🅟🅟🅟🅟 ................................................................

. 19 2. 4 Leverage Funding Exemption 🅟🅟 ................................................................

..................... 19 2. 5 Modifications and Special Considerations 🅟🅟🅟🅟🅟🅟 ................................

........................... 19 2. 6 Data Sovereignty 🅟🅟🅟🅟🅟🅟 ................................................................................................

. 20 2. 7 Tribal Notification 🅟🅟🅟🅟🅟🅟 ................................................................................................

20 2. 8 Technical Assistance 🅟🅟🅟🅟🅟🅟 ........................................................................................... 21 Section 3.

Eligibility ................................................................................................ ................ 22 3.

1 Eligible Applicants 🅟🅟🅟🅟🅟🅟 ............................................................................................... 22 3. 2 Collaborative Governance 🅟🅟🅟🅟🅟🅟 ................................................................

................... 27 3. 3 Project Area Eligibility 🅟🅟🅟🅟🅟🅟 ................................................................

.......................... 33 Section 4. Planning Grants ................................................................................................

..... 39 4. 1 Planning Grant Objectives 🅟🅟 ................................................................

......................... 39 4. 2 Eligible Planning Grant Activities 🅟🅟 ................................................................................

40 4. 3 Planning Grant Timeline 🅟🅟 ............................................................................................. 40 4.

4 Developing a Planning Grant Application 🅟🅟 ................................................................ .... 40 Section 5.

Project Development Grants ................................................................ ................... 42 Transformative Climate Communities Round 6 Final Guidelines April 2026 5.

1 Project Development Grant Objectives 🅟🅟 ................................................................ ...... 42 5.

2 Eligible Project Development Activities 🅟🅟 ...................................................................... 42 5. 3 Project Development Grant Timeline 🅟🅟 ..........................................................................

43 5. 4 Developing a Project Development Application 🅟🅟 .......................................................... 44 Section 6.

Implementation Grants ................................................................ .......................... 45 6.

1 Implementation Grant Objectives 🅟🅟 .............................................................................. 45 6. 2 Eligible Implementation Grant Activities 🅟🅟 ................................................................

..... 45 6. 3 Vision Statement 🅟🅟 ................................................................................................

....... 45 6. 4 Implementation Grant Framework 🅟🅟 .............................................................................

46 6. 5 Implementation Grant Transformative Elements 🅟🅟 ........................................................ 47 6.

6 Implementation Grant Timeline 🅟🅟 ................................................................................. 47 6. 7 Implementation Grant Phases 🅟🅟 ...................................................................................

48 6. 8 Developing an Implementation Grant application 🅟🅟 ................................ .......................

50 Section 7. Transformative Elements ................................................................ ........................

52 7. 1 Transformative Elements Overview 🅟🅟🅟🅟🅟🅟 ................................................................ ......

52 7. 2 Grant Evaluation 🅟🅟🅟🅟🅟🅟 ................................................................................................ .

54 7. 3 Community Engagement 🅟🅟🅟🅟🅟🅟 ................................................................ .....................

56 7. 4 Displacement Avoidance 🅟🅟🅟🅟🅟🅟 ..................................................................................... 60 7.

5 Workforce Development and Economic Opportunities 🅟🅟🅟🅟🅟🅟 ......................................... 64 7. 6 Climate Adaptation and Resilience 🅟🅟🅟🅟🅟🅟 ......................................................................

69 7. 7 Leverage Funding 🅟🅟 ................................................................................................ ......

70 Section 8. Program Costs ....................................................................................................... 74 8.

1 Eligible Costs 🅟🅟🅟🅟🅟🅟 ...................................................................................................... 74 8. 2 Ineligible Costs 🅟🅟🅟🅟🅟🅟 ................................................................................................

... 78 8. 3 Cost Categories and Caps 🅟🅟🅟🅟🅟🅟 ...................................................................................

79 Section 9. Application Overview.............................................................................................. 81 9.

1 Award Amounts 🅟🅟🅟🅟🅟🅟 ................................................................................................... 81 9. 2 Application Submission Process 🅟🅟🅟🅟🅟🅟 ..........................................................................

82 9. 3 Application Review Process 🅟🅟 ................................................................ .......................

83 9. 4 Funding Goals and Priority Points 🅟🅟🅟🅟🅟🅟 ........................................................................ 84 9.

5 Planning Grants: Program Thresholds and Scoring Criteria 🅟🅟 ................................ ......... 88 Transformative Climate Communities Round 6 Final Guidelines April 2026 9.

6 Project Development Grants: Program Thresholds and Scoring Criteria 🅟🅟 ...................... 92 9. 7 Implementation Grants: Program Thresholds and Scoring Criteria 🅟🅟 ..............................

97 9. 8 Close Scores Protocol 🅟🅟🅟🅟🅟🅟 ....................................................................................... 105 Section 10.

Application Requirements .................................................................................. 107 10. 1 Application phases 🅟🅟🅟🅟🅟🅟 ..........................................................................................

107 10. 2 Summary of Application Components 🅟🅟🅟🅟🅟🅟 .............................................................. 107 10.

3 Early Application Components 🅟🅟🅟🅟🅟🅟 ......................................................................... 111 10. 4 Applicant Eligibility 🅟🅟🅟🅟🅟🅟 ..........................................................................................

112 10. 5 Project Area 🅟🅟🅟🅟🅟🅟 .................................................................................................... 114 10.

6 Prior Community Engagement 🅟🅟🅟🅟🅟🅟 ......................................................................... 115 10. 7 Financial Capacity 🅟🅟🅟🅟🅟🅟 ...........................................................................................

116 10. 8 Management Capacity 🅟🅟🅟🅟🅟🅟 ..................................................................................... 117 10.

9 Collaborative Governance 🅟🅟🅟🅟🅟🅟 ............................................................................... 118 10. 10 Work Plan and Budget 🅟🅟🅟🅟🅟🅟 ...................................................................................

119 10. 11 Additional Requirements for Specific Strategies – Implementation Grants Only 🅟🅟 ..... 121 10.

12 Leverage Funding 🅟🅟 ................................................................................................ 121 10. 13 Site Control 🅟🅟🅟🅟 ......................................................................................................

122 10. 14 California Environmental Quality Act 🅟🅟🅟🅟 ................................................................. 124 10.

15 Permits 🅟🅟🅟🅟 ............................................................................................................ 126 10. 16 Operations and Maintenance Plans 🅟🅟🅟🅟 ...................................................................

127 10. 17 Long-term Use and Ownership 🅟🅟🅟🅟🅟🅟 ....................................................................... 127 10.

18 Interviews 🅟🅟 ............................................................................................................ 128 10. 19 Program Policy Priorities 🅟🅟🅟🅟🅟🅟 ................................................................................

129 Section 11. Grant Administration and Program Expectations ................................................. 134 11.

1 Grant Terms 🅟🅟🅟🅟🅟🅟 .................................................................................................... 134 11. 2 Lead Grantee, Partners, and Subcontractors 🅟🅟🅟🅟🅟🅟 ................................

.................... 134 11. 3 Strategic Growth Council and Department of Conservation 🅟🅟🅟🅟🅟🅟 ..............................

135 11. 4 Post-Award Consultation Process 🅟🅟🅟🅟🅟🅟 .................................................................... 135 11.

5 Disbursement and Accounting of Funds 🅟🅟🅟🅟🅟🅟 ........................................................... 135 11. 6 Reporting Requirements 🅟🅟🅟🅟🅟🅟 ..................................................................................

137 11. 7 Check-ins and Monitoring 🅟🅟🅟🅟🅟🅟 ................................................................................ 138 Transformative Climate Communities Round 6 Final Guidelines April 2026 11.

8 Prevailing Wage Requirements 🅟🅟🅟🅟🅟🅟 ......................................................................... 139 11. 9 Publicity Requirements 🅟🅟🅟🅟🅟🅟 ....................................................................................

140 11. 10 Audit and Record Retention 🅟🅟🅟🅟🅟🅟 ........................................................................... 140 Section 12.

Technical Assistance .......................................................................................... 142 12. 1 Application Technical Assistance 🅟🅟🅟🅟🅟🅟 .....................................................................

142 12. 2 Pre-Development Phase Technical Assistance 🅟🅟 ....................................................... 143 12.

3 Implementation Technical Assistance 🅟🅟 ................................................................ .... 143 12.

4 Evaluation Technical Assistance 🅟🅟 ............................................................................ 143 Section 13. List of Appendices ..............................................................................................

145 Appendix A – Terms and Definitions ...................................................................................... 147 Appendix B – TCC-funded Projects by Strategy 🅟🅟 .................................................................. 157 Eligible Application Requirements .....................................................................................

157 Strategy 1: Equitable Housing and Neighborhood Development ......................................... 158 Strategy 2: Land Acquisition for Neighborhood Stabilization ............................................... 164 Strategy 3: Transit Access and Mobility Strategy ................................................................

168 Strategy 3. 1: Active Transportation .................................................................................... 169 Strategy 3.

2: Transit and Rail Access ................................................................................. 172 Strategy 3. 3: Car Sharing and Mobility Enhancement .........................................................

176 Strategy 4: Solar Installation, Energy Efficiency, and Appliance Electrification .................... 178 Strategy 5: Water Efficiency and Resiliency........................................................................ 185 Strategy 6: Recycling, Composting, and Waste Reduction ..................................................

189 Strategy 7: Urban Greening and Green Infrastructure ......................................................... 192 Strategy 8: Health Equity and Well-Being ........................................................................... 195 Strategy 9: Indoor Air Quality .............................................................................................

199 Strategy 10: Community Microgrids ................................................................................... 203 Strategy 11: Brownfield Redevelopment ............................................................................ 206 Strategy 12: Community Resilience Centers ......................................................................

211 Strategy 13: Other Climate Innovation ............................................................................... 215 Appendix C – Transformative Elements 🅟🅟🅟🅟🅟🅟 ....................................................................... 217 Appendix C-1: Community Engagement Plan Examples ................................

..................... 217 Appendix C-2: Displacement Avoidance Plan Examples ..................................................... 219 Appendix C-3: Workforce Development and Economic Opportunities Plan Examples .........

223 Appendix C-4: Climate Adaptation and Resilience Examples.............................................. 224 Transformative Climate Communities Round 6 Final Guidelines April 2026 Appendix D – Collaborative Governance Structure 🅟🅟🅟🅟 .......................................................... 226 Governance and Conflict Resolution .................................................................................

226 Representation ................................................................................................................. 226 Appendix E-1 – Post-Award Process and Policies – Planning Grants and Project Development Grants 🅟🅟🅟🅟 ...........................................................................................................................

228 Summary .......................................................................................................................... 228 Appendix E-2 – Post-Award Process and Policies – Implementation Grants 🅟🅟 ........................ 232 Summary ..........................................................................................................................

232 Appendix F – Air Pollution Reduction and Mitigation .............................................................. 239 Policies and Programs to Reduce or Mitigate Local Air Pollution ......................................... 239 Appendix G – Close Scores Protocol Example .......................................................................

242 Appendix H – Frequently Asked Questions ................................................................ ............ 244 Appendix I – Sample grant agreement ...................................................................................

247 Transformative Climate Communities Round 6 Final Guidelines April 2026 # How to Use This Document This Guidelines document governs Round 6 of the Transformative Climate Communities Program and provides resources and guidance for applicants.

This document includes information on the three available grant types: • Project Development Grants All information in this document applies to all grant types unless specifically stated otherwise. Please read all relevant sections. It is important for past applicants to read the Guidelines, as requirements have changed from past funding rounds.

This document is not the only source of information on TCC requirements. The forthcoming Notice of Funding Availability (NOFA), application, and application instructions contain additional requirements and pertinent information and resources for applicants.

If an applicant finds any ambiguity, conflict, discrepancy, omission, or other error in the TCC Guidelines, the applicant should immediately notify TCC staff of such error via email and request a corresponding change or clarification in the document. TCC staff, at its discretion, may provide changes or clarifications by amending the Guidelines, without divulging the source of the request.

If other materials differ from the Guidelines, the Guidelines supersede. During the Application Period, SGC reserves the right to issue clarifications and minor modifications to the application instructions and requirements as needed. SGC shall not be responsible for failure to fix errors.

For the most current information, please reference the TCC webpage. For ease of navigation, some section headers are accompanied by one or more icons indicating which grant type(s) that section applies to ( 🅟🅟 for Planning Grants, 🅟🅟 for Project Development Grants, or 🅟🅟 for Implementation Grants). If the icons and text differ, the text supersedes.

Grant type sub-sections have been omitted and/or combined as appropriate. Sections that contain information on a mixture of grant types will be structured as follows: All Grant Types 🅟🅟 🅟🅟 🅟🅟 Information that applies to all grant types. All applicants must read this section.

Information that only applies to Planning Grants. Project Development Grants 🅟🅟 Information that only applies to Project Development Grants. Implementation Grants 🅟🅟 Information that only applies to Implementation Grants.

Transformative Climate Communities Round 6 Final Guidelines April 2026 # Section 1. Program Overview • The Transformative Climate Communities Program (TCC) was established to fund community-led development and infrastructure projects that achieve major environmental, health, and economic benefits in California’s most disadvantaged communities.

• TCC’s Round 6 is expected to be funded by the Climate Bond for Planning, Project Development, and Implementation Grants. Funding amounts for each grant type will be announced in the Notice of Funding Availability (NOFA). # 1.

1 Background 🅟🅟🅟🅟🅟🅟 ## Budget and Legislative Background The Transformative Climate Communities (TCC) Program funds community-led projects that reduce greenhouse gas (GHG) emissions while improving public health, economic opportunity, and environmental conditions.

The California Strategic Growth Council (SGC) launched TCC in 2016 as part of California Climate Investments, a statewide initiative that uses Cap-and-Invest (also known as Cap-and-Trade) dollars to reduce greenhouse gas emissions, strengthen the economy, and improve public health outcomes, particularly in disadvantaged communities. Cap-and-Invest-funded TCC Rounds 1, 2 and 3. The California General Fund supported Rounds 4 and 5.

In November 2024, California voters approved the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4), a $10 billion General Obligation Bond commonly known as the Climate Bond. The Climate Bond funds TCC Round 6 and supports projects that strengthen community resilience and provide economic, environmental, and health benefits.

Assembly Bill (AB) 2722 (Burke, Chapter 371, Statutes of 2016) established the TCC Program to “fund the development and implementation of neighborhood-level transformative climate community plans that include multiple coordinated greenhouse gas emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities as described in Section 39711 of the Health and Safety Code” (Pub.

Resources Code § 75240). In addition to reducing GHG emissions in disadvantaged communities, AB 2722 includes the following goals: • Maximize community benefits: “Projects shall maximize climate, public health, environmental, workforce, and economic benefits.

” Transformative Climate Communities Round 6 Final Guidelines April 2026 • Avoid displacement: “In adopting the guidelines, SGC shall consider whether eligible plans and projects avoid economic displacement of low-income disadvantaged community residents and businesses. ” • Comprehensive community engagement: “SGC shall award grants for projects that demonstrate community engagement in all phases.

” • Leverage additional funds: “By making such comprehensive public investments, it is the intent of the Legislature that private resources can be more effectively catalyzed to support innovative community and climate transformation in disadvantaged communities,” and “SGC and all funded entities shall endeavor to identify additional public and private sources of funding to sustain and expand the program.

” • Technical assistance: “SGC shall fund technical assistance providers to assist in application development and project development and implementation. ” In addition to AB 2722, the following legislation also govern the TCC Program: • Assembly Bill 32 (Nunez, Chapter 488, Statutes of 2006): Requires California to reduce its GHG emissions to 1990 levels by 2020 and authorizes the cap-and-trade program.

• Senate Bill 535 (De León, Chapter 830, Statutes of 2012): Requires that state and local agencies direct at least 25%of Greenhouse Gas Reduction Fund (GGRF) investments to benefit disadvantaged communities, as defined by the California Environmental Protection Agency (CalEPA). • Senate Bill 32 (Pavley, Chapter 249, Statues of 2016): Requires California to reduce GHG emissions to 40% below 1990 levels by 2030.

• Assembly Bill 1550 (Gomez, Chapter 369, Statutes of 2016): Expands requirements for GGRF to include other Priority Populations based on income. In addition to SB 535 requirements, AB 1550 requires that at least 5% of funds benefit low-income households or communities statewide, and an additional 5% must benefit those located within one-half mile of a disadvantaged community.

Together, SB 535 and AB 1550 prioritize investments to disadvantaged and low-income communities and households in need of assistance. • Senate Bill 351 (Hurtado, 2019): Requires SGC to make unincorporated areas eligible for the TCC Program. • Assembly Bill 3017 (Hart, 2024): Authorizes advance payment of grant funds to nonprofit organizations, and federally recognized Tribes.

Transformative Climate Communities Round 6 Final Guidelines April 2026 # 1. 2 Program Summary 🅟🅟 🅟🅟 🅟🅟 The California Strategic Growth Council (SGC) administers the TCC Program in partnership with the California Department of Conservation (DOC). TCC Round 6 will fund three grant types: Planning, Project Development, and Implementation.

All grants must align with the Program Objectives. SGC will determine award amounts and the number of awards in the Notice of Funding Availability (NOFA). Applicants may apply for multiple funding programs for the same scope of work.

However, awarded applicants will only be able to receive full funding from one award. If selected for more than one award, SGC will work with applicants to modify the scope of work to eliminate duplication of funding.

Examples of eligible activities: • Climate Action Plan development • Policy and code evaluation and updates Award amount: Up to $300,000 Project area size: No size requirements • Application must address at least one Transformative Element ( see Section 7 for more For more information about Planning Grants, see Section 4 .

## Project Development Grants 🅟🅟 Grant purpose: Fund pre-development activities and water supply and wastewater infrastructure to support communities to meet their climate and community resilience goals.

Examples of eligible activities: • All Planning Grant eligible activities • Remediation Transformative Climate Communities Round 6 Final Guidelines April 2026 • Implementation preparation Award amount: Up to $5 million Project area size: No size requirements • Application must address two Transformative Elements below: o Climate adaptation and resilience For more information about Project Development Grants, see Section 5 .

## Implementation Grants 🅟🅟 Grant purpose: Fund neighborhood-level projects that include multiple, coordinated activities that reduce GHG emissions and achieve community benefits.

Examples of eligible activities: • Infrastructure: affordable housing, bike lanes, transit services, urban greening • Social programs: supportive services, food distribution, transit pass distribution • Pre-development for construction activities See Appendix B for all eligible project types for Implementation Grants. Award amount: Up to $27. 5 million.

Applicants may request smaller amounts if it is relevant to their community’s context and capacities.

Grant term: Six years total, including the following phases: • Pre-Development: Nine months • Administrative Transition: Three months • Implementation: Four years • Up to five square miles for urban areas, and • Up to 15 square miles for rural areas • Robust prior community engagement • Two-phased application process • Must address all six Transformative Elements listed below: (See Section 7 )Transformative Climate Communities Round 6 Final Guidelines April 2026 2.

Displacement Avoidance 3. Workforce Development and Economic Opportunities 4. Climate Adaptation and Resilience For more information about Implementation Grants, see Section 6 .

# 1. 3 Program Objectives 🅟🅟 🅟🅟 🅟🅟 All applicants must consider the three TCC Program Objectives when designing their applications. • Planning Grant and Project Development Grant applicants must describe how their proposed activities will support achieving these Objectives through future implementation.

• Implementation Grant applicants must comprehensively address how their proposed activities will achieve all three Objectives. The Program Objectives are: 1. Achieve significant reductions in greenhouse gas (GHG) emissions Applicants must develop an application with integrated projects that will reduce GHG emissions and further the objectives of California Health and Safety Code Section 38566 .

2. Improve public health and environmental benefits Applicants must describe how their projects will improve public health outcomes and achieve environmental benefits within the Project Area. 3.

Expand economic opportunity and shared prosperity Applicants must describe how their projects will create economic opportunities for Project Area residents and ensure that benefits are accessible and equitable. # 1.

4 Program Approach 🅟🅟 🅟🅟 🅟🅟 ## Vision for Racial Equity SGC is committed to achieving racial equity in its operations, investments, and policy initiatives and to achieving its vision that all people in California live in healthy, thriving, and resilient communities regardless of race.

(See SGC Racial Equity Action Plan: 2023-2025 ) ## Vision for Transformation The TCC Program framework for achieving California’s climate goals represents an evolution in the State’s typical funding models in four significant ways. 1. Place-Based Approach: TCC invests in defined geographic areas to address multiple community needs at once.

This approach empowers communities to identify priorities and propose solutions that address climate change and equity challenges at a neighborhood scale, while embracing their many strengths and assets. Transformative Climate Communities Round 6 Final Guidelines April 2026 2. Integrated Strategies and Projects: Implementing multiple integrated Strategies and Projects makes the whole of each grant greater than the sum of its parts.

By integrating cross-sector activities within a single application, the State can maximize GHG reductions and deliver broader community benefits. 3. Transformative Elements: The TCC Program focuses on ensuring investments provide direct benefits to neighborhood residents.

Robust community engagement and workforce development requirements ensure that TCC applications are designed to reflect community needs. Grant recipients must also implement measures to avoid the displacement of existing residents and businesses so they can benefit from the program’s investments in the long run.

Communities select projects that build resilience to current and future climate impacts affecting vulnerable populations and the built environment, including infrastructure and public spaces. The program also catalyzes local, multi-sector partnerships that leverage public and private funding to support long-term community revitalization and equitable development.

Long-term grant evaluation allows the TCC Program to assess outcomes and apply lessons learned. 4. Developing Partnerships: The TCC Program supports the development of long-term partnerships at multiple levels.

Applicants must establish Collaborative Governance Structures that bring together public agencies, nonprofit organizations, residents, and other local entities to advance a shared community vision. The TCC Program partners with applicants, Lead Grantees, and Partners through outreach and technical assistance to help build these networks.

SGC has also fostered partnerships at the State level through coordination with multiple agencies during guideline development and application review. # 1. 5 Investing in Priority Communities 🅟🅟 🅟🅟 🅟🅟 The TCC Program prioritizes investments in communities most burdened by environmental, socioeconomic, and health inequities.

The following definitions that are marked with an asterisk (*) are income-based definitions of disadvantaged communities (DACs), severely disadvantaged communities (SDACs), and climate vulnerable populations. TCC will follow these definitions for reporting purposes in accordance with the Climate Bond to ensure that projects will provide meaningful and direct benefits to priority communities.

These definitions do not determine eligibility. See Section 3. 3 for information on ## Disadvantaged Community (DAC) Disadvantaged communities (DACs) include: 1.

Census tracts disproportionately affected by pollution and environmental burdens a.

The California Environmental Protection Agency (CalEPA) identifies these tracts using geographic, socioeconomic, public health, and environmental hazard criteria through the California Communities Environmental Health Screening Tool Transformative Climate Communities Round 6 Final Guidelines April 2026 (CalEnviroScreen or CES), a mapping tool developed by the Office of Environmental Health Hazard Assessment (OEHHA) 1 b.

A high CES percentile indicates that a community is disproportionately burdened by multiple sources of pollution, environmental degradation, socioeconomic stressors, and adverse health conditions 2. Federally recognized Native American Tribes or non-federally recognized Native American Tribes listed on the California Tribal Consultation List maintained by the Native American Heritage Commission 3.

*Communities with a median household income of less than 80% of the area average or less than 80% of statewide median household income ## *Severely Disadvantaged Community (SDAC) A community with a median household income of less than 60% of the area average or less than 60% of statewide median household income.

## *Vulnerable Population: A subgroup population within a region or community that faces a disproportionately heightened risk or increased sensitivity to impacts of climate change and that lacks adequate resources to cope with, adapt to, or recover from such impacts. TCC will report Tribes as vulnerable populations in accordance with the Climate Bond .

TCC uses the Vulnerable Communities Platform (VCP), which combines climate hazard and social vulnerability data to assess five major climate hazards: wildfire, extreme heat, flooding, sea level rise, and drought. This tool helps staff verify that TCC investments will benefit communities most vulnerable to current and projected climate impacts.

Communities defined as “disadvantaged” often include populations with lower incomes and higher exposure to pollution and environmental hazards. Residents may experience elevated rates of health challenges, as well as increased socioeconomic and environmental vulnerability. These communities often face heightened risks from climate impacts while having fewer resources to cope with, adapt to, or recover from those impacts.

These conditions are shaped by physical, social, political, and economic factors, including a history of inequitable land use, underinvestment, and a lack of meaningful engagement with community residents in planning and policy decisions. SGC recognizes that the term “disadvantaged” does not reflect the full range of assets and strengths within these communities.

The term is used to align with statutory requirements, not to define communities by their challenges. In many of these communities, organized groups of neighborhood leaders are actively engaged in local planning efforts, policy campaigns, and other activities to make their communities healthier, safer, and more sustainable.

These efforts are particularly important today since these communities will disproportionately experience the > 1 Health and Safety Code § 39711(a) Transformative Climate Communities Round 6 Final Guidelines April 2026 impacts of climate change.

The TCC Program is designed to support residents, businesses, and local partners in building upon existing strengths, advancing community-led efforts, and ensuring they benefit from program investments. # 1. 6 Funding Goals and Priorities 🅟🅟 🅟🅟 🅟🅟 TCC prioritizes priority communities and Project Areas through application scoring.

Eligible applications representing Tribal applicants, disadvantaged unincorporated communities, or previous SGC or California Governor’s Office of Land Use and Climate Innovation (LCI) grantees may receive additional points if they meet certain requirements. • Tribal Funding Goal: SGC intends to award at least one grant of each grant type to eligible applications from California Native American Tribes or Tribally-owned nonprofits.

• Disadvantaged Unincorporated Community Funding Goal: SGC intends to award one grant of each grant type to eligible applications with Project Areas in disadvantaged unincorporated communities. Priority Points: Eligible applications representing Tribal applicants, disadvantaged unincorporated communities, or previous SGC or LCI grantees will receive additional points if they meet certain requirements. Please see Section 9.

4 for more information. Transformative Climate Communities Round 6 Final Guidelines April 2026 # Section 2. California Native American Tribes and Tribal Applicants • Federally and non-federally recognized California Native American Tribes are eligible to apply as Lead Applicants or Co-Applicants and are encouraged to participate.

• SGC intends to fund at least one eligible Planning Grant, Project Development Grant, and Implementation Grant with a California Native American Tribe or Tribally-owned nonprofit as the Lead Applicant. • Tribal applicants receive flexibility in certain program and application requirements and are eligible for technical assistance during both the application process and the grant term. # 2.

1 Important Terminology • “California Native American Tribe” means either a federally recognized Native American Tribe or a non-federally recognized Native American Tribe listed on the California Tribal Consultation List maintained by the Native American Heritage Commission as of February 19, 2026. • “Tribal applicants” refers to applicants whose Lead Applicant is a California Native American Tribe or a Tribally-owned nonprofit.

• “Tribally-owned nonprofit” refers to an organization exempt from taxation under Internal Revenue Code 501(c)(3) (26 U.S.C. § 501(c)(3)), a nonprofit incorporated under Tribal law, a California nonprofit public benefit corporation (Corp. Code, § 5110 et seq.) , or an equivalent entity that has a majority Tribal-led board, is operated by a Tribe , and advances the Tribe’s goals and priorities.

A Tribal nonprofit is required to provide a Letter of Authorization or Resolution on behalf of the Tribe they represent. See Appendix A for full definitions of “California Native American Tribe” and “Tribally-owned nonprofit,” and Section 3 for additional information on applicant eligibility. # 2.

2 Tribal Funding Goal 🅟🅟🅟🅟🅟🅟 Federally and non-federally recognized California Native American Tribes are eligible to apply as either Lead Applicants or Co-Applicants and are encouraged to participate.

SGC intends to fund at least one eligible Planning Grant, Project Development Grant, and Implementation Grant with a California Native American Tribe or Tribally-owned nonprofit (as defined in Appendix A ) serving as the Lead Applicant. California Native American Tribes, Tribally- owned nonprofits, and certain other nonprofits that serve Tribal communities will also receive Priority Points. See Section 9.

4 for additional details. Transformative Climate Communities Round 6 Final Guidelines April 2026 # 2. 3 Limited Waiver of Sovereign Immunity 🅟🅟 🅟🅟 🅟🅟 If a Tribe is receiving TCC payments on a reimbursement basis from SGC, Tribes will not be required to sign a Limited Waiver of Sovereign Immunity.

If a Tribe is receiving TCC payments via advance pay, SGC may require a Limited Waiver of Sovereign Immunity. TCC is committed to working collaboratively with Tribes on tailoring the terms of a Limited Waiver of Sovereign Immunity to support Tribal priorities while also meeting the State’s obligations under the law.

Tribes who are Co-Applicants should work with their Lead Applicant to determine whether they will need to sign a Limited Waiver of Sovereign Immunity prior to submitting an application. # 2. 4 Leverage Funding Exemption 🅟🅟 Applicants with a California Native American Tribe or Tribally-owned nonprofit serving as the Lead Applicant are exempt from the Implementation Grant leverage funding requirement.

Planning Grants and Project Development Grants do not have a leverage funding requirement. See Section 7. 7 for more information on leverage funding.

# 2. 5 Modifications and Special Considerations 🅟🅟 🅟🅟 🅟🅟 SGC intends for the TCC Program to be accessible and relevant to Tribal applicants. Certain sections of these Guidelines provide flexibility for Lead Applicants who are California Native American Tribes or Tribally-owned nonprofits (as defined in Appendix A ).

These applicants may also request further modifications to specific requirements. Applicants must submit modification requests related to grant application requirements for pre-approval before the application due date. Final guidance on how to submit a Tribal modification request will be included in the NOFA.

In general, this flexibility applies only when the Lead Applicant is a California Native American Tribe or Tribally-owned nonprofit. Two of these modifications are also available when a California Native American Tribe or Tribally-owned nonprofit serves as a Co-Applicant, as noted in italics below.

SGC may also consider extending modifications to applicants with a Tribal Co-Applicant if doing so would support meaningful Tribal participation. The sections listed below describe special considerations and eligible modifications. Applicants should look for the bolded words “ Tribal applicants ”, or a subsection titled “Tribal applicants” within each section for more details.

• Public agency support: Includes automatic flexibility (See Section 3. 1 ) • Co-Applicant requirements and Collaborative Governance: Includes some automatic flexibility; applicants can request further modifications (See Section 3. 2 ) • Project Area requirements : Includes some automatic flexibility; applicants can request further modifications (See Section 3.

3 ) • Protecting data sovereignty in application materials and reporting (See Section 7. 2 and Section 11. 6 )Transformative Climate Communities Round 6 Final Guidelines April 2026 o This modification is available to all California Native American Tribes and Tribally-owned nonprofits regardless of whether they are a Lead Applicant or Co-Applicant.

It is not available to any other Lead or Co-Applicants involved in an application. o Includes automatic flexibility; applicants can request further modifications. • Displacement Avoidance Plan requirements: Applicants can request modifications (See • Workforce Development and Economic Opportunities Plan requirements: Applicants can request modifications (See Section 7.

5 ) • Leverage funding: Includes automatic flexibility (See Section 7. 7 ) • Indirect cost caps (See Section 8. 1 ) o This modification is available to all California Native American Tribes and Tribally-owned nonprofits regardless of whether they are a Lead Applicant or Co-Applicant.

It is not available to any other Lead or Co-Applicants involved in an application. o Includes some automatic flexibility; applicants can request further modifications • Water supply and wastewater infrastructure cost caps: Includes automatic flexibility (See Section 8. 3 )