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

Feb 24, 2026 - The state levies per ‑gallon excise taxes on various fuels sold and consumed in the state. These include a 2 ‑cent ‑per ‑gallon excise tax on jet fuel, which is applied to both petroleum ‑based jet fuel and SAF.
https://lao.ca.gov/Publications/Report/5139

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

Feb 24, 2026 - The state has made notable progress in pursuing its ZEV adoption goals in recent years, with the share of new passenger vehicles sold in California that are ZEVs climbing from 8  percent in 2020 to over 20  percent in 2025.
https://lao.ca.gov/Publications/Report/5140

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

Dec 9, 2025 - Both the allowance prices and number of allowances sold were similar across the two auctions. (In both auctions, all the state-owned allowances offered for sale were purchased.) …Continuing to Come in Slightly Below 2025-26 Budget Act Assumptions.
https://lao.ca.gov/Publications/Report/5096

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

May 7, 2025 - For example, under the current program structure established through CARB regulations, the value of allowances goes to the entities that receive free allocations (such as utilities and some industries) and to the state (in the case of allowance revenues sold for deposit into  GGRF).
https://lao.ca.gov/Publications/Report/5042

California’s Cap-and-Trade Program: Frequently Asked Questions

Oct 24, 2023 - CARB sets a “floor price ” (minimum price) for which an allowance can be sold, but historically allowances frequently have sold above that price due to buyer interest. For example, in the August 2023 auction, CARB set the per-allowance floor price at $22.21 but allowances ultimately sold for $35.22 each.
https://lao.ca.gov/Publications/Report/4811

Cap-And-Trade Auction Update and GGRF Projections

Dec 6, 2021 - The increased revenue from higher allowance prices was partially offset by a 4  million decrease in the number of state ‑owned allowances that were offered (and sold). This change was driven by the fact that the November auction sold about 8  million allowances that previously went unsold in 2020  auctions, compared to 12  million allowances in the August 2021 auction .
https://lao.ca.gov/Publications/Report/4480

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

Feb 24, 2025 - We conclude by discussing a proposal related to allowing a higher blend of ethanol in fuel (known as E15) to be sold in the state than currently is authorized. Federal, State, and Local Governments Have Responsibilities for Improving Air Quality.
https://lao.ca.gov/Publications/Report/4980

The 2024-25 Budget: Cap-and-Trade Expenditure Plan

Feb 20, 2024 - This methodology resulted in DOF regularly underestimating revenues quite notably, as allowances have sold well above the floor price for the last several years. (In contrast, our office historically has developed cap ‑and ‑trade revenue estimates based on an assumption of stable allowance prices.
https://lao.ca.gov/Publications/Report/4847

Assessing California’s Climate Policies—Agriculture

Dec 15, 2021 - As shown in Figure  5 , the captured biogas can be used to generate heat or electricity, which can be used on site or sold to a local utility. Alternatively, the biogas can be upgraded to biomethane —pipeline ‑quality gas that is fully interchangeable with conventional fossil natural gas —and sold to a local utility to be used for several purposes, such as transportation fuel.
https://lao.ca.gov/Publications/Report/4483

The 2024-25 Budget: Sustainable Funding for the Department of Pesticide Regulation

Mar 5, 2024 - In this post, we assess the Governor's proposal to increase the mill assessment—a tax levied on pesticides when first sold into or within the state—to address the structural deficit within the Department of Pesticide Regulation’s special fund and to support various programmatic expansions for the department.
https://lao.ca.gov/Publications/Report/4873