A California Senate budget subcommittee has voted against Governor Gavin Newsom's proposed spending plan for the Greenhouse Gas Reduction Fund. The conflict centers on the state's carbon auction revenues, which typically generate 3 to 4 billion dollars annually for climate projects and environmental justice programs. Legislators are concerned that proposed changes to the cap-and-invest program, intended to lower costs for oil refineries and industry, could reduce future auction revenues by up to 2 billion dollars per year. This potential funding gap threatens projects ranging from high-speed rail to clean transportation.
