For many Californians, unseasonal winds and grass fires in May are reminders that climate change is intensifying extreme weather. But as gas prices continue to rise, a long-running debate in the Capitol is reigniting: Can California consumers afford the state’s nation-leading climate agenda?
As CalMatters’ Alejandro Lazo explains, the Iran war has shot up gas prices to a statewide average of $6 a gallon, and will likely squeeze more out of drivers as the conflict drags on. Two of the state’s refineries have also closed within the last six months, further limiting resources.
The situation prompted the California Air Resources Board to consider providing major companies as much as $4 billion in new free carbon emission permits — with half of those permits reserved for the fossil fuel industry. In exchange for this subsidy in the state’s cap-and-invest program, polluters must commit to investing in clean energy projects.
- Zach Leary, a lobbyist for the Western States Petroleum Association: “The state is acknowledging that affordability and ambition are not getting along very well right now.”
But environmentalists argue that the plan is a freebie to Big Oil, and weakens California’s cap-and-invest program, which is the only state policy that sets a firm limit on emissions. Critics also say it would wipe out any progress made to reduce emission levels that California set for itself by 2030.
- Chloe Ames, a policy adviser with NextGen Policy: “We are really concerned that this would significantly kneecap the program.”
State air regulators say that environmentalists’ framing is wrong and that the allowances are limited, temporary, and may be rescinded.
Revenue for state programs that come from carbon market auctions could also fall under the proposal, from about $4 billion annually to $2 billion, according to the nonpartisan Legislative Analyst’s Office.
Some lawmakers support the plan. In a joint statement, both heads of the Assembly’s climate and energy committees said the proposal “reflects the Legislature’s focus on affordability.”
The air board will decide whether to approve the plan on May 28.
We’re bringing our voter guide to life through VotingMatters events across California this month, in collaboration with on-the-ground partners: Local news organizations, colleges, libraries, churches and nonprofit organizations. Our next events are tonight in Vallejo and Wednesday evening in San Francisco. Plus, we have a DIY kit to host your own event.
Other Stories You Should Know
Have a question for The Lincoln Project?
We’re bringing together some big names in politics, tech and nonprofits this week for our second Ideas Festival and we’d love to hear from you if you have a question for our speakers.
The event will include a main stage discussion reuniting the three founding members of The Lincoln Project, the anti-Trump Republicans who lifted Joe Biden in the 2020 election. We’ll also hear from Cesar Fernandez, Anthropic’s head of U.S. state and local government relations; Julián Castro, the CEO of the Latino Community Foundation; and California Attorney General Rob Bonta.
If you’d like to ask them a question, email whatmatters@calmatters.org and they may respond live on stage. If you can’t make it to Sacramento, we will record all the main stage sessions and post them on our site at a later date.
Check out our full list of speakers and get tickets. We hope to see you there!
Community colleges clamp down on fraud
Better filtering practices and new software are helping to curb financial aid fraud at California community colleges — a welcomed change from last spring, when colleges saw unprecedented reports of fraud, writes CalMatters’ Adam Echelman.
Colleges reported losing a little under $1.5 million in federal student aid to scammers between January through March and about $330,000 in state aid. Last spring, fraudsters stole nearly $5.6 million in federal aid and over $900,000 in state aid.
The downward trend follows CalMatters’ continual coverage of financial aid fraud, as well as growing scrutiny from federal and state lawmakers.
Last year, California’s Community Colleges Chancellor’s Office also approved a new identification verification policy for students, and it negotiated a multimillion-dollar contract with a software company that uses artificial intelligence to detect potentially fraudulent applicants.
It’s important to keep in mind that even when fraud was at its peak last spring, the aid money distributed to scammers accounted for less than 1% of the total financial aid distributed to California community college students. Nevertheless, “the ultimate goal for our system is zero,” said Chris Ferguson, the executive vice chancellor of finance and strategic initiatives.
And lastly: No one at the wheel of Fast Food Council
Lawmakers created California’s first-in-the-nation fast food council in 2023 to allow workers and labor advocates a way to set industry standards on wages, working conditions, safety and health. But the council hasn’t met in over a year and it still lacks a chairperson, leading workers to demand Gov. Gavin Newsom to appoint a chairperson as directed by law. Read more from CalMatters’ Levi Sumagaysay.
California Voices
CalMatters columnist Dan Walters: If Newsom’s final budget is enacted, he could end his time as governor claiming to have solved the budget problem that he caused in 2022 — though in reality California’s fiscal dilemma will continue.
To ensure clean, reliable water for Californians, the state needs to prioritize resilient local water supplies, enforce water laws and fix its antiquated water bureaucracy, writes Sean Bothwell, executive director of California Coastkeeper Alliance.
Other things worth your time:
Nancy Pelosi puts thumb on the scale in race for her successor. Here’s who she endorsed // CalMatters
Tech leaders funding Mahan’s campaign for CA governor say it’s not about tech // Los Angeles Times
CA water managers raise 2026 deliveries as reservoirs remain near full // The Sacramento Bee
This CA law aims to prevent investors from flipping distressed homes. They’re managing to anyway // The San Diego Union-Tribune
CA lawyers can’t quit AI — even as hallucinated citations pile up // San Francisco Chronicle
AI has invaded the LA mayor’s race. Some fear it’s just the beginning // Los Angeles Times
A must-win CA House seat is giving Dems heartburn // Politico
Three killed in Islamic Center of San Diego shooting, according to SDPD // Times of San Diego
Grizzly bears could return to CA after a 100-year absence // KVPR
