California regulators have approved significant changes to the state's cap-and-trade system, now called cap-and-invest. The overhaul introduces a new pool of free emissions permits for oil refineries and industrial facilities to prevent business relocation and manage consumer costs. Critics argue these changes provide billions in benefits to major polluters and could slash annual auction revenues from $4 billion to $2 billion. This reduction may limit funding for public transit, wildfire prevention, and other state climate initiatives.
