California regulators have updated the state's cap-and-invest program to provide more free emissions permits to oil refineries and industrial plants. The move aims to keep businesses in the state and lower consumer costs, but critics argue it weakens the incentive for companies to decarbonize. This policy shift could significantly reduce the revenue generated from carbon allowance auctions. Some estimates suggest annual funding for public transit and wildfire prevention could drop from 4 billion dollars to 2 billion dollars.
