The California Air Resources Board has approved a significant overhaul of the Cap-and-Invest program, a cornerstone of the state's climate policy. The changes aim to balance affordability and environmental goals but have drawn criticism from both industry and environmental groups.
- The program adds about 24 cents per gallon to gas prices, which have exceeded $6 in San Diego due to refinery closures and global supply issues. - A new $4 billion Manufacturing Decarbonization Incentive supports industry, but oil companies seek long-term certainty beyond 2030.
- Environmental groups argue the revisions undermine decarbonization efforts and reduce funding for pollution-reduction projects. The revisions may cut revenues for the Greenhouse Gas Reduction Fund by half, according to the Legislative Analyst's Office.