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

Feb 24, 2026 - Despite the aviation sector ’s relatively small contribution to GHG emissions, policymakers have shown significant interest in addressing aircraft emissions as the sector is viewed as among the more difficult to decarbonize.
https://lao.ca.gov/Publications/Report/5139

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

Feb 10, 2026 - In our view, making significant changes to the basic structure of the credit on a regular or ongoing basis is problematic. This is because frequent changes to the approach could increase customer confusion and make bills more unpredictable.
https://lao.ca.gov/Publications/Report/5120

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

Feb 10, 2026 - In our view, it typically makes sense to try to maintain existing funding commitments. However, as we discuss in our January 2026 publication, The 2026‑27 Budget: Overview of the Governor’s Budget , the state faces alarming multiyear budget deficits, ranging from $20 billion to $35 billion annually.
https://lao.ca.gov/Publications/Report/5114

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

Feb 10, 2026 - In our view, the Legislature should apply a very high bar to such proposals, particularly in light of projected deficits and the need to balance new commitments against existing program obligations. To that end, we offer criteria the Legislature could use in reviewing these proposals.
https://lao.ca.gov/Publications/Report/5116