The 2026-27 Budget: Cap-and-Invest Expenditure Plan

Feb 10, 2026 - We note that the language of S B  840 indicates that the methodology applies to “moneys in the fund ” and thus does not clearly limit it exclusively to auction revenues. However, the administration indicates that the intent of S B   840 was to apply the methodology only to auction revenues, consistent with historical practice.
https://lao.ca.gov/Publications/Report/5114

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Some experts we consulted indicated that the proposed tax credit may be large enough to encourage a dramatic shift toward SAF sales in California, suggesting that foregone tax revenues could be substantially higher than the administration estimates.
https://lao.ca.gov/Publications/Report/5139

The 2026-27 Budget: Permitting Support at the State Water Resources Control Board

Mar 2, 2026 - SWRCB indicates that the vast majority of dredge/fill projects do not receive public comments. Aligning the state process with the federal process would reduce the time and workload needed to process permits.
https://lao.ca.gov/Publications/Report/5144

The 2026-27 Budget: Proposition 4 Spending Plan

Feb 10, 2026 - Unlike the Governor ’s initial 2025 ‑26 proposal, in general, the budget does not propose a multiyear spending plan for Proposition  4; the administration indicates that —in response to feedback from the Legislature —it instead will submit programmatic bond funding proposals on a year ‑by ‑year basis.
https://lao.ca.gov/Publications/Report/5115

The 2026-27 Budget: Proposed Elimination of State Environmental Positions

Feb 17, 2026 - In January, the Legislature indicated it did not agree with eliminating 349 of these positions. If eliminated, they would generate annual sav ings of $45  million ($19  million from the General Fund and $25  million from special funds).
https://lao.ca.gov/Publications/Report/5124

The 2026-27 Budget: Proposed Zero-Emission Vehicle Incentive

Feb 24, 2026 - The administration indicates that the impetus for this proposal is to partially backfill the recent loss of federal incentive funding. However, the state is facing the loss of federal funds across a variety of areas and does not have the fiscal capacity to backfill them across the board.
https://lao.ca.gov/Publications/Report/5140

The 2026-27 Budget: California Public Utilities Commission’s Implementation of AB 1207

Feb 10, 2026 - CPUC indicates it believes this more complicated approach is required by the statute ’s direction “to maximize customer affordability. ” CPUC ’s Proposed Approach to AB  1207 Implementation Raises Important Policy Choices … Assembly Bill 1207 does not make it clear how, if at all, the Legislature would like the California Climate Credit to vary based on factors such as geography
https://lao.ca.gov/Publications/Report/5120

The 2026-27 Budget: Framework for Approaching the Natural Resources, Environmental Protection, and Agriculture Budget

Feb 10, 2026 - Rather, the administration indicates it will propose a revised budget that begins to solve the out ‑year problems as part of the May Revision. However, such a delay would force the Legislature to either accept solutions that have not received sufficient public discussion or defer action even more.  
https://lao.ca.gov/Publications/Report/5116

The 2025-26 Budget: Cap-and-Trade Reauthorization and Greenhouse Gas Reduction Fund Proposals at May Revision

May 19, 2025 - However, the administration indicates that it views all of the existing allocations as pending negotiation with the Legislature. Additionally, the Governor has indicated a priority that any new spending plan include at least $1  billion per year annually for the high-speed rail project.
https://lao.ca.gov/Publications/Report/5049

The 2025-26 Budget: Various California Air Resources Board Proposals

Feb 24, 2025 - (The department indicates the process likely would take until late 2027 absent the proposed additional resources.) After the regulation has been adopted, CARB indicates that it would use the additional staff for associated implementation and enforcement activities.
https://lao.ca.gov/Publications/Report/4980