A pair of Democratic lawmakers on Thursday raised concerns about California air regulators’ proposal to weaken the state’s cap-and-invest program, arguing it could drastically reduce funding for climate programs.
What happened: State Senate Environmental Quality Chair Catherine Blakespear said during a budget hearing Thursday that the California Air Resources Board’s last-minute changes to its draft carbon market rules, released Tuesday, could cause a $2 billion decline in revenue for clean transportation, high-speed rail, utility bill rebates and other programs.
Her comment came during a discussion with Department of Finance officials over Gov. Gavin Newsom’s (D) plan to use $1.25 billion from the Greenhouse Gas Reduction Fund — which stores revenues generated through quarterly emissions permit auctions — to fund the California Department of Forestry and Fire Protection (CalFire).
“I’m very alarmed to see that,” Blakespear said of CARB’s proposal, adding that it raised the possibility of reopening negotiations around CalFire.
