Governor Gavin Newsom and state legislative leaders reached a significant agreement early Wednesday to extend the state’s cap-and-trade program through 2045. This decision comes after weeks of intense negotiations and aims to continue reducing greenhouse gas emissions. The cap-and-trade program, now rebranded as “cap and invest,” sets a limit on emissions and allows companies to buy and sell pollution permits. This extension is crucial for funding California’s environmental and climate initiatives, including high-speed rail and clean-air programs, as reported by CalMatters.
Alongside the cap-and-trade extension, the agreement includes measures to increase domestic oil production. New drilling permits will be issued, and a defunct offshore pipeline will be rehabilitated. This move aims to stabilize gas prices and is part of a broader package to address energy affordability, as detailed by Redding.com.
The legislative package also establishes a state fund to monitor pollution in disadvantaged communities and adds $18 billion to the state’s wildfire liability fund. Additionally, it sets the stage for California to join a regional electricity market with neighboring states, which is expected to lower electricity rates and improve grid reliability.
While the deal is celebrated for balancing economic and environmental goals, it has faced criticism. Some environmental groups argue that the extension does not sufficiently address the needs for climate solutions and affordability. The package was finalized just before the legislative session’s end, requiring lawmakers to extend their session to vote on it, according to Yahoo News.
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