SACRAMENTO, California — A bipartisan group of two dozen California state lawmakers staked out a moderate position Monday on the reauthorization and extension of the state’s cornerstone climate program.
What happened: The legislative Problem Solvers Caucus, which includes 21 assemblymembers and five senators, released four principles for the state’s cap-and-trade program as the Legislature begins the final month of its legislative session.
They want to “retain and enhance” free emissions permits for businesses in the program in the name of affordability. They also want a comprehensive cost analysis of the program and regular legislative review. Finally, they want broad support to extend the program to provide certainty to the market and bolster its faltering revenues.
Why this matters: In addition to serving as the backstop regulation that ensures the state meets its emissions reduction obligations, the cap-and-trade program is also a major revenue generator. But proceeds in the state’s quarterly auctions have fallen as traders reckon with the program’s impending expiration in 2030 and uncertainty over whether regulators will adjust the market’s rules. President Donald Trump amplified the uncertainty in April with an executive order directing the Justice Department to block state climate programs, including cap and trade.
