California Senate Democrats are threatening to block Governor Newsom's climate priorities, including high-speed rail and wildfire funding, over a new program that gives free pollution permits to oil refineries. The standoff could cut billions from climate programs.
- The new Manufacturing Decarbonization Incentive program would give away permits worth up to $4 billion to polluters. - Senate Democrats have proposed a counterplan that protects funding for housing, transit, and clean air programs.
- The Legislative Analyst's Office projects the changes could cut annual auction revenue from $4 billion to $2 billion. - The governor and Legislature have until June 30 to agree on a budget deal, but climate funding negotiations could continue through September.