California air regulators have approved a controversial update to the state's cap-and-invest program. The new rules allow oil refineries and other heavy polluters to receive billions of dollars in free pollution permits, a move pushed by the governor's office to prevent refinery closures and stabilize gas prices. This policy shift is expected to significantly reduce state revenue from carbon auctions, potentially cutting funding from $4 billion to $2 billion annually. This shortfall threatens budgets for public transit, affordable housing, and pollution monitoring in disadvantaged communities.
