Labor, transit and housing groups oppose weakened Calif. cap-and-invest plan

By Alex Nieves | 05/01/2026 11:35 AM EDT

The pushback adds to a growing chorus of concerns with proposed changes that would benefit the fossil fuel industry.

This aerial photo shows the Standard Oil Refinery in El Segundo, California.

Opposition to proposed amendments to California’s emissions trading program is growing. Reed Saxon/AP

Dozens of labor, housing and public transit groups have come out against proposed changes that would weaken emissions standards within California’s cap-and-invest program.

What happened: A coalition of more than 60 organizations, including the California Transit Association, Housing California and Teamsters, wrote in a Thursday letter to California Air Resources Board Chair Lauren Sanchez that amendments to the agency’s draft carbon market rules released earlier this month could reduce funding for climate programs by $1.65 billion, with “no plan to backfill the losses.”

“We are gravely concerned with the program’s proposed direction,” the group wrote.

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Why it matters: The pushback comes after 28 legislative Democrats voiced their own opposition to the amendments earlier this week, writing in a letter to Sanchez on Monday that the changes “depart from the spirit of our landmark agreement from last year by seeking to achieve affordability goals without accountability.”

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