Sacramento, California – California’s long-running effort to cut climate pollution while directing money back into communities entered a new phase on May 29, as the California Air Resources Board adopted updates to the state’s Cap-and-Invest Program, drawing immediate praise from Governor Gavin Newsom.
The updates, proposed earlier this year, are intended to keep the program aligned with California’s climate targets while addressing the cost pressures felt by residents and businesses. State officials say the revisions support affordability, manage program costs and preserve a dependable long-term signal for companies considering clean energy investments in California.
For Newsom, the board’s action reinforced a policy the state has relied on for years: placing a declining limit on climate emissions from major polluters, then channeling investment into projects designed to benefit Californians.
“California’s nation-leading Cap-and-Invest program has proven that we can cut pollution, create jobs, and invest in a cleaner future at the same time. These are real results that Californians can see and feel,” Newsom said in a statement.
He also applauded the California Air Resources Board, commonly known as CARB, for what he called its leadership and commitment to keeping the program strong over the long term. Newsom contrasted California’s approach with federal actions under President Donald Trump, saying the state remains focused on protecting its economy, public health and clean energy future.
The newly adopted changes come after California lawmakers and the governor extended Cap-and-Invest last year through AB 1207, authored by Assemblymember Jacqui Irwin, and SB 840, authored by Sen. Monique Limón. That extension kept the program in place as California works toward its climate goals for 2030 and 2045.
Read also: California sheriffs’ association recognizes rising students while preserving a leader’s memory
Cap-and-Invest is one part of a broader set of climate policies California has developed over roughly two decades. The program covers major sources of climate emissions, including large factories, energy companies, and oil and gas suppliers. Together, those covered sources represent about 80% of the state’s total climate emissions.
Under the system, emissions are capped and the limit declines over time. Polluters that exceed the limit must invest through the program, helping fund projects that state leaders say are meant to improve daily life across California.
Those investments have reached into a wide range of areas. Funding linked to Cap-and-Invest has supported clean energy, local transit and rail, affordable and sustainable housing, clean water, natural and working lands, healthier forests, and wildfire prevention and response. State officials estimate the program is four to six times more cost-effective than traditional prescriptive regulations.
Read also: Extreme heat planning becomes central to Sacramento’s sustainable growth vision
The program’s record was central to Newsom’s support for the latest revisions. According to the Governor’s Office, Cap-and-Invest helped California meet its 2020 climate target six years ahead of schedule. It has generated $35 billion for climate investments, financed more than half a million projects statewide, supported 30,000 jobs and cut millions of tons of carbon pollution.
The program has also returned money directly to consumers. California officials say residents have received $16 billion in utility bill credits through Cap-and-Invest, an outcome that has become especially important as affordability remains a major concern across the state.
CARB said the adopted updates were shaped by the need to continue reducing emissions while recognizing present economic conditions. The changes are designed to keep California moving toward its required climate targets without losing sight of household costs, business stability or future investment.
Read also: Sacramento program gives pets vaccines, microchips and a safer path back home
The board’s action also arrives at a politically charged moment for climate policy. California officials have warned of growing opposition and federal rollbacks that could affect environmental and clean energy initiatives nationwide. Newsom said the state intends to continue moving forward despite those pressures.
The governor’s complete statement is available through the Governor of California’s office, while CARB has posted details about the adopted program updates.
With the latest action, California is continuing a climate strategy built not only around lower emissions, but also around jobs, household relief and public investment. The state’s message is that its environmental goals and its economic priorities are meant to move together — even as the larger national debate over climate policy grows more uncertain.