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

Dec 9, 2025 - Senate Bill 840 also adds statutory allocations for a few new programs, including the following: Set Aside for Future Legislative Appropriation. The legislation sets aside $1  billion annually to be appropriated by the Legislature through the annual budget act or other statute.
https://lao.ca.gov/Publications/Report/5097

The 2022-23 California Spending Plan: Resources and Environmental Protection

Oct 10, 2022 - This also includes a $50  million General Fund transfer to the Natural Resources and Parks Preservation Fund for future capital outlay projects, with $1  million set aside to identify needed projects.
https://lao.ca.gov/Publications/Report/4633

The Bay-Delta Plan and Voluntary Agreements: Ensuring Effective Legislative Oversight

Mar 18, 2026 - The Bay ‑Delta Plan identifies beneficial uses, sets water quality objectives, and prescribes a program of implementation for the entire watershed. SWRCB (rather than a regional board) manages the Bay ‑Delta Plan because the watershed spans multiple regions and sets flow requirements.
https://lao.ca.gov/Publications/Report/5163

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

Dec 9, 2025 - This amount includes a total of $3.2  billion for various identified programs and purposes, $1  billion set aside for unspecified programs subject to appropriation, and roughly $100  million for state administrative costs.
https://lao.ca.gov/Publications/Report/5096

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

Feb 10, 2026 - The funding and positions would address additional workload related to two active SET events occurring in the state; enhance overall state oversight; and update regulations to stre ngthen monitoring, response, and enforcement for future SET  events.
https://lao.ca.gov/Publications/Report/5116

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

Feb 10, 2026 - Instead, the statute references setting aside funding for them prior to computing allotments for Tier  3  funding. Funding Proposals From State Operations Has Implications for Money Left Available for Other Tiers.
https://lao.ca.gov/Publications/Report/5114

The 2026-27 Budget: Governor’s Office of Land Use and Climate Innovation Proposals

Mar 19, 2026 - Taken together, this set of proposals represents a new ongoing General Fund commitment. While we find that the proposals have merit, like all other General Fund augmentations they must be considered in the context of the state ’s projected multiyear structural deficits —which are estimated to range from about $20  billion to $35  billion annually.  
https://lao.ca.gov/Publications/Report/5167

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

Feb 24, 2026 - Administration Set Ambitious ZEV Goals, Which Federal Actions Have Called Into Question. Mobile sources —including light ‑, medium ‑, and heavy ‑duty vehicles —contribute to California ’s GHG emissions and air pollution.
https://lao.ca.gov/Publications/Report/5140

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

Feb 24, 2026 - Currently, a few refineries in the United States are set up to convert feedstocks into both renewable diesel (RD) —which accounts for the majority of diesel purchased in California —and SAF. These refineries can shift production between these two types of fuels with relative ease depending on market conditions, as the industrial processes for producing RD and SAF are similar, using the same feedstocks and much of the same equipment.
https://lao.ca.gov/Publications/Report/5139

Assessing California’s Climate Policies—Cap-and-Trade Reauthorization

May 7, 2025 - Accordingly, setting a lower upper bound for allowance prices can thereby constrain potential associated costs for consumers. The Legislature could set a price ceiling at whatever level it deems appropriate given its policy priorities.
https://lao.ca.gov/Publications/Report/5042