Overview of New Updates to the Cap-and-Invest Program

Dec 9, 2025 - Accordingly, the statutorily required GGRF allocations for the SRA fee backfill and manufacturing tax exemption still are scheduled  to end January 1, 2031 and July  30,  2030,  respectively. Adds a Few New Statutory Allocations.
https://lao.ca.gov/Publications/Report/5097

The 2025-26 California Spending Plan: Natural Resources and Environmental Protection

Oct 16, 2025 - Of this total, 28  percent ($53  million) consists of reductions to General Fund spending and the remainder ($136  million) is from special funds. Due to the timing of when budget actions occurred and how DOF reflected these actions in its fiscal documents, some —but not all —of these state operations reductions are reflected in the department totals displayed earlier in Figures 1 and 2.
https://lao.ca.gov/Publications/Report/5080

Cap-and-Invest: November 2025 Auction Update and 2026-27 Budget Context

Dec 9, 2025 - Senate Bill 840 made various modifications to the allocation of GGRF revenues starting in 2026-27, such as (1)  changing some allocations from being set percentages of GGRF revenues to fixed dollar amounts and (2)  changing the order in which certain allocations are made.
https://lao.ca.gov/Publications/Report/5096

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

Feb 24, 2026 - The credit would be worth $1 to $2 per gallon of SAF produced for use in California —higher for production that CARB determines to be less carbon intensive —and apply to production between January 2026 and December 2035 (though the credit could not be claimed by taxpayers until November 2027).
https://lao.ca.gov/Publications/Report/5139

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

Feb 10, 2026 - DOF indicates that its proposed budget trailer legislation clarifies its interpretation of the intent of SB 840 related to (1) the funds subject to the SB 840 methodology and (2) the treatment of state operations costs.
https://lao.ca.gov/Publications/Report/5114

The 2023-24 Budget: Cap-and-Trade Expenditure Plan and Greenhouse Gas Reduction Fund Revenue Estimates

Mar 2, 2023 - The Legislature will want to consider (1)  whether restoring funding for ZEV programs is its greatest priority for higher-than-anticipated GGRF revenues, and (2)  whether it wants to grant this unprecedented level of midyear spending decisions to the administration.
https://lao.ca.gov/Publications/Report/4730

The 2022-23 Budget: Cap-and-Trade Expenditure Plan

Jan 25, 2022 - Ultimately, the amount of discretionary funding allocated in the 2022 ‑23 budget will depend on both (1) revenue assumptions and (2) how much the Legislature chooses to leave as a reserve in the GGRF to address revenue uncertainty.
https://lao.ca.gov/Publications/Report/4496

The 2026-27 Budget: Proposition 4 Spending Plan

Feb 10, 2026 - This amount was approved via three different 2025 budget actions: (1) $181  million provided through Chapter  2 of 2025 (A B  100 , Gabriel) (these funds were available for departments to spend during the final few months of 2024 ‑25), (2) $2.9  million through Chapter  5 of 2025 (A B  102 , Gabriel), and (3) $3.3  billion through Chapter  104 of 2025 (S B  105 , Wiener).
https://lao.ca.gov/Publications/Report/5115

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - The budget includes provisional language authorizing the Department of Finance to augment State Emergency Telephone Number Account fund expenditure authority by amounts “necessary to continue implementation of the Next Generation 9-1-1 system, including transition from the legacy 9-1-1 system, ” subject to 30-day legislative notification.
https://lao.ca.gov/Publications/Report/5081

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

Feb 24, 2026 - As we discuss in our December 2018 report, Assessing California’s Climate Policies—Transportation , such challenges can include (1) program interactions that can affect cost‑effectiveness, (2) difficulty evaluating programs,(3) potential lack of program coordination, and (4) increased administrative costs.
https://lao.ca.gov/Publications/Report/5140