California air regulators have approved a significant change to the state's cap-and-invest program. The overhaul introduces a pool of free pollution permits valued at up to $4 billion, primarily targeting oil refineries and industrial polluters who pledge to invest in clean energy and efficiency projects. Critics and environmental groups argue the move weakens the state's greenhouse gas emissions cap and could slash funding for public transit and affordable housing by half. The decision follows pressure to keep refineries operational amid rising fuel prices.
