Legislators Support Cap-and-Invest Programs that Lower Utility Bills, Prevent Wildfires, & Provide Safe Drinking Water

SACRAMENTO-Today, fourteen legislators, including Assemblymembers and Senators, released a joint letter addressed to the California Air Resources Board (CARB) to urge timely approval of Cap-and-Invest program regulations to generate sustained investments through the Greenhouse Gas Reduction Fund (GGRF) for programs that help lower utility bill costs, support wildfire prevention projects, fund safe and affordable drinking water programs, improve air quality, and more. The framework for CARB to achieve these goals was enacted last year through the passage of AB 1207 and SB 840, and with two-thirds support of the Legislature.

"Strengthening and modernizing the Cap-and-Invest program has never been more important in the face of ongoing Federal cuts and volatile energy prices," said Assemblymember Connolly. "The Legislature provided CARB with a framework that will transition the climate credit to reduce electricity bills, increase wildfire prevention, maintain funding for safe and affordable drinking water, and reduce air pollution throughout the state. I join my colleagues to express our support for a strong Cap-and-Invest program that delivers on these goals."

Since 2013, California's Cap-and-Invest program has generated $34 billion in revenue, funding more than 575,000 projects ranging from wildfire prevention and access to safe drinking water to zero-emission school buses. Additionally, projects are also providing rebates and vouchers for zero-emission vehicles, conserving or restoring land, planting trees, expanding and developing new transit operations, and building affordable housing. Cumulatively, 76% ($8.1 billion) of implemented GGRF investments have gone to projects benefiting disadvantaged communities.

If the program regulation upholds the legislative direction of AB 1207 (Irwin, 2025) and SB 840 (Limón, 2025), which were negotiated last year as part of the Cap-and-Invest reauthorization process, the program is projected to generate an additional $56 billion over the next 20 years to benefit Californians. Ignoring this framework would create uncertainty about the program's effectiveness, weaken market confidence, and jeopardize the state's ability to fund important programs and meet its climate goals.