California Cap-and-Invest updates deeply misguided, undermine the program’s potential to curb pollution and invest in communities

“Cap-and-Invest is California’s signature climate policy with a proven track record of delivering cost-effective pollution cuts and billions in investments for communities. Two-thirds of the State Legislature voted to extend the program through 2045 just last fall, because they recognized this program has significant climate and affordability benefits for working families. Unfortunately, the California Air Resources Board has adopted a deeply misguided update that undercuts the program’s full potential by prioritizing polluters over communities.

“These changes to Cap-and-Invest allow more pollution and undermine the program’s ability to support investments that cut emissions and costs for families. The Board ignored clear direction from lawmakers to align the program with state pollution reduction targets and prioritize support for household affordability. It also missed the opportunity to deliver even greater climate and affordability benefits with a more ambitious approach.

“State leaders have delegated a lot of important responsibility to the Board to clean our air and lead California’s actions to confront a changing climate. Going forward, we need a trusted partner to oversee an orderly rulemaking process aligned with legislative direction and California’s statutory climate targets. As the Board swiftly moves to consider linkage with Washington State’s emissions market, it should also evaluate the risks created by the new Manufacturing Decarbonization Incentive to ensure Cap-and-Invest continues to maximize its ability to both drive down pollution and cut costs in California for years to come.”

• Katelyn Roedner Sutter, California Senior Director, Environmental Defense Fund